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Abstract

This case uses an example of a progressive women farmer entrepreneur (Hiruth) operating a dairy business in Ethiopia and offers valuable lessons for businesses operating in Africa and elsewhere in the world. While on the market side, the demand for milk based products is on the rise in Ethiopia, the supply side poses several known challenges. Due to supply shortage of the right quality milk, most processing facilities operate at 50% to 60% of their capacity. In such an operating environment, Hiruth has managed to create and grow her business at a rapid pace. This case demonstrates how Hiruth managed to build her supply base loyalty by assuring purchase and quality based price premium and managed to build a fool-proof supply chain. By positioning herself as an orchestrator of the chain rather than just as a buyer has enabled her to build a robust chain and a growing business.

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