The process of dairy development that this study addresses is driven by underlying
fundamental changes in economic growth, the value of resources and consumer
demand. However, it is also shaped by public policies, interventions and investment
decisions and will be accompanied by changes in impact on incomes, opportunities
and livelihoods of producers and changes in opportunities and returns for market
agents and investors. This study examines dairy development in two key dairy
producing regions in the developing world: East Africa and South Asia. The aim of the
study is to analyse the trends in dairy development in these two regions and identify
their key determinants, to analyse the impact of policy interventions on those trends
and to identify impacts of dairy development, particularly on the poor.
The study is reported in three parts: Part 1 presents a conceptual framework for dairy
development, followed by a section presenting a regional analysis of dairy
development trends across all the countries in the two regions and a synthesis of the
outcomes of the case study analyses (see below), highlighting implications for policy
interventions and investment, including proposing a model for pro-poor dairy
development. Parts 2 and 3 consist of in-depth case studies and analyses of dairy
development trends, determinants and outcomes in Kenya and Ethiopia (Part 2 – this
report) and India and Pakistan (Part 3).