COST-BENEFIT ANALYSIS OF A MILK PROCESSING PLANT FOR THE BENEFITS OF PASTORALISTS, SOMALI REGION, ETHIOPIA

Glenn Jenkins () and Mikhail Miklyaev

No 2013-09, Development Discussion Papers from JDI Executive Programs

Abstract: Milk is one of the main sources for the livelihood of pastoralists around the world. Somali Region in Ethiopia is famous for the high density of livestock, implying significant potential for milk production. The perishable nature of the milk and the absence of the milk processing facilities do not allow this sector to fully utilize this potential, imposing significant economic losses on the community. This study assesses the economic feasibility of the milk processing plant in Jijiga city. The study analyses both moderate and aggressive enhancement options of the plant. The rigorous distributive analysis is used to estimate the allocation of the benefits arising to the government of Ethiopia, the pastoralists and the traders supplying milk to the plant, the labor involved employed by the facility, the Jijiga city community and the private entrepreneur. The sensitivity analysis is used to assess potential risk factors facing the facility.

Keywords: cost-benefit analysis; investment appraisal; stakeholder analysis; pastoralism; milk processing; milk production; camel’s milk; poverty reduction; Jijiga; Somali Region; Ethiopia; sustainable development (search for similar items in EconPapers)
JEL-codes: D24 D31 D61 D62 E22 E23 F35 Q01 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2014-01
New Economics Papers: this item is included in nep-afr and nep-agr
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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