
This project involves the establishment of milk processing infrastructure in Jijiga, Ethiopia, as part of USAID's Pastoralists Resilience Improvement and Market Development (PRIME) initiative. The project aims to address post-harvest milk losses and limited market access for Somali Region pastoralists and is expected to generate economic and social benefits by increasing pastoralist incomes, creating jobs, and improving food security through enhanced dairy value chains. The study evaluated both moderate and aggressive capacity options, with particular attention to benefit allocation among pastoralists, traders, processors, and local communities.
As part of the evaluation, a comprehensive cost-benefit analysis was conducted in line with international good practices, assessing the plant's financial viability, economic efficiency, and distributional impacts. The analysis included detailed market assessments, production forecasts, and risk-adjusted sensitivity scenarios to ensure robust decision-making support for USAID/Ethiopia and the Government of Ethiopia's Ministry of Agriculture.