To secure availability of high-quality, local milk, the project is helping smallholder farmers to increase their capacity and build a sustainable livelihood from dairy farming. Strong market connection is key, so one of the aims is to integrate smallholder farmers and local dairies.

The project is driven by the growing year-round demand from children and mothers for safe, dairy-based products. The project engages the entire value chain from smallholder farmers and dairy processors to distribution, sale and consumption. o Before starting the project, the GAIN Nordic Partners conducted an impact assessment of the value chain from sourcing to consumption. This identified potential adverse impacts as well as opportunities for positive contributions to the UN sustainable development goals (SDGs), all of which provided input for the project design. o In mid-2017, the GAIN Nordic partners began cooperating with two local dairies, which will produce an affordable, nutritiously balanced yoghurt for sale in Ethiopian markets and kiosks and for testing in a school feeding programme. At the same time, work is underway to raise public awareness of the importance of good nutrition and the role of milk-based products. The aim is to encourage vulnerable consumers who are exempt from Ethiopia’s frequent fasting tradition - children and pregnant or breastfeeding mothers – to include more dairy nutrition in their diet. o The GAIN Nordic partners have co-developed a yoghurt prototype primarily based on local milk and fortified with selected vitamins and minerals to meet criteria for a low price point, appealing taste and good nutrition profile. The product has been developed in close cooperation with Arla Foods Ingredients and will function as a supplement to consumers’ daily nutritional intake.

GAIN is project lead, heads the multi-sector GAIN Nordic partnership and is responsible for providing nutrition expertise and organising demand creation activities. From the private sector, Arla Foods Ingredients is the main business lead, supporting product innovation and dairy processing; DSM is providing fortification expertise; and two local dairies are responsible for yoghurt production: Loni Agro Industry PLC and Rut and Hirut Milk Cow Breeding, Dairy Production and Processing PLC. DanChurchAid is working with smallholder farmers to improve milk quality and yield and theirrconnection to local dairy companies.