Diagnostic study of the growth potential of the milk and milk by-products value chain (Hautes Terres - Madagascar)[Étude diagnostic relative au potentiel de croissance de la chaine de valeur lait et produits dérivés (Hautes Terres - Madagascar)]

The "Milk and by-products" value chain is supported by the CASEF project in the Highlands of Madagascar. A value chain study has been carried out to update the diagnosis and provide stakeholders with reliable information. The methodology is based on surveys of farms, downstream operators and consumers. Milk production in 2018 in the three regions concerned was estimated at over 80 million liters. This represents a 3-fold increase in 15 years, reflecting the dynamism of the sector, with a doubling in the number of producers and an increase in production per farm. Breeding, forage production and marketing practices are analyzed using a classification based on annual production. The farms are small, with 1 to 2 dairy cows, and remain diversified. Differences between classes are linked to dairy cow productivity, while differences between production factors are smaller. Production costs reveal two types of intensification and significant margins for progress. Yogurt consumption is widespread in the city, and home-made yogurts are the most popular. There is no market segmentation between "home-made" and branded yogurts. All socio-professional categories consume both. Home-made yogurts are cheaper, and consumers are satisfied with their quality. In 2018, the milk supply for the "Dairy Triangle" is 100,000 tonnes, plus 37,600 tonnes equivalent of imported powder. Local milk is competitive with imported powder in terms of price, and it is other determinants such as quality and logistics that influence the supply strategies of industries. The added value generated by the entire milk industry, excluding agro-industrial processing, amounts to 181 billion Ariary, and employs 80,000 operators, nearly 90% of whom are producers. Finally, a number of options for the development of the sector and their modalities are analyzed: widening and/or densifying the production basin, developing existing potential by targeting different types of producers, improving the downstream sector. Contrasting prospective scenarios are proposed.