Table 5. Organization of dairy cooperative and its functions for milk collection, processing, and marketing

Unit structure Management/operation Functions Compose level
Dairy cooperative

Legal Entity

Managed by management committee (5–7 members elected)

Hired staffs (manager, accountant, technician, salesperson)

Milk collection & processing unit

Packaging of fluid milk

Marketing

About 3 dairy Co-Ops in Woreda level

Milk collection centre (MCC)

Branch of dairy Co-Op.

Central point of milk collection

Milk delivery to dairy-Co-Op.

Can be a processing unit

1 to 3 Milk collection groups in Kebele level

Milk collection group (MCP)

Dairy farmers’ group

Managed by management committee in itself

Transportation of milk to MCC

Can operated by dairy Co-Op.

20–25 farmers in Kebele level (5 in Oromia and 3 in Amhara)

Dairy farm household

Represented by head of each farm household

Raising cows and milking

Deliver milk in cans by horse, cart, children to MCP