MEKELLE UNIVERSITY

COLLEGE OF VETERINARY SCIENECES

LECTURE NOTES FOR THE COURSE STANDARDS AND

REGULATIONS IN DAIRY SECTOR (DPPT7016)

Compiled By:

Kiros Abebe (PhD)

Department of Veterinary Theriogenology and Welfare

December, 2023
Mekelle, Tigray

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 1. Overview of Food Legislations

Developing countries bear the greatest global burden of food-borne illnesses and death. The
strain this adds to an already stretched public health services is huge. Regional and international
trade is becoming extremely invaluable. For this reason, more sensitivity to food safety is
needed. Benefits of safe, adequate, and nutritious food abound. It is crucial to long-term
economic growth, good health, and productivity. It is also associated with a happier population
that would enjoy reduced conflict. Countries in Africa and the rest of the developing world have
some form of legislation regarding food safety. Some of this, however, are most rudimentary,
archaic and at times not based on sound science. For these legislations to benefit the rest of the
countries there must be a push to align them to World Trade Organization (WTO)‘s agreement
on the application of Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT)
agreements and the Codex standards and codes of practice. Some of the standards are not
science-based as required by Codex in a bid to help facilitate regional and international trade
among different countries. This then curtails international trade and sometimes creating a bad
notion of standards among processors. Several factors hamper the push to realize the
implementation of food safety legislations in the countries such as inadequate technical capacity,
lack of awareness of economic loss arising from poor quality foods, and weak enforcement of
regulations among others.

Once a food safety policy is in place and adopted, this gives room for appropriate accompanying
legislation. The legislation must be updated, based on science; give spell out clearly the roles and
obligations of each concerned organization, and above all be enforced. For many developing
countries, the full enforcement is a missing ingredient. For food safety legislations to succeed,
they must cover all components of the food supply chain. Often in Africa, and the rest of the
developing countries, food safety legislations leave out the informal sector which is a major
contributor to food value chain and hence any accompanying ills.

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 2. Quality and Safety Standards of Animal Origin Foods

2.1. Quality Attributes

Most available definitions of quality refer to consumers, e.g., quality has been defined as
―product performance that results in consumer satisfaction and freedom from deficiencies, and
which avoids consumer dissatisfaction‖. Other definitions state that quality refers to product
characteristics which ―helps somebody and enjoys a good and sustainable market‖ or that
―quality refers to the degree of standard of excellence, and/or fitness for purpose, and/or the
consistency of attainment‖ of food properties. Quality has also been defined as characteristics of
products ―that bears on themselves ability to satisfy given needs.

Whatever the definition, most of the experts have also made a distinction between intrinsic and
extrinsic quality attributes. The first refers to the product itself and includes for instance, (i)
safety and health aspects, (ii) sensory properties (e.g. texture and flavour) and shelf life, (iii)
chemical and nutritional attributes and (iv) reliability and convenience. The latter refers to traits
more or less associated with the product, namely (i) production system characteristics (from the
animals to processing stages including animal welfare, environmental aspects, and social
considerations for instance), and (ii) marketing variables (including price, brand name,
distribution, origin, packaging, labeling, and traceability).

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Figure 1. Quality must now be considered as a convergence of consumers' expectations and
needs with intrinsic and extrinsic quality attributes of food products depending on cultural habits.
Today, consumers' choice and purchase depend on the interaction between economic and social
contexts, their perception of quality traits (through quality labels) and the true quality traits of
animal products. The latter depends on animal genetics, husbandry and physiology, tissue
characteristics and the process of muscle and milk transformation into meat and dairy products.
Safety and traceability must be ensured along the whole food chain. Quality and safety are now
becoming interdisciplinary approaches with the aim to satisfy consumers.

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2.2. Safety Attributes

Safety is often included in the list of quality attributes and refers to the absence of adverse health
effects due to the presence of biological and chemical contaminants in food products.

Food safety is used as a scientific discipline describing handle, preparation, and storage of food
in ways that prevent food-borne illness. The occurrence of two or more cases of a similar
illnesses resulting from the ingestion of a common food is known as a food-borne disease
outbreak. This includes a number of routines that should be followed to avoid potential health
hazards. In this way food safety often overlaps with food defense to prevent harm to consumers.
The tracks within this line of thought are safety between industry and the market and then
between the market and the consumer. In considering industry to market practices, food safety
considerations include the origins of food including the practices relating to food labeling, food
hygiene, food additives and pesticide residues, as well as policies on biotechnology and food and
guidelines for the management of governmental import and export inspection and certification
systems for foods. In considering market to consumer practices, the usual thought is that food
ought to be safe in the market and the concern is safe delivery and preparation of the food for the
consumer.

Food can transmit pathogens which can result in the illness or death of the person or other
animals. The main mediums are bacteria, viruses, mold, and fungus. It can also serve as a growth
and reproductive medium for pathogens. In developed countries there are intricate standards for
food preparation, whereas in lesser developed countries there are fewer standards and less
enforcement of those standards. Another main issue is simply the availability of adequate safe
water, which is usually a critical item in the spreading of diseases. In theory, food poisoning is
100% preventable. However this cannot be achieved due to the number of persons involved in
the supply chain, as well as the fact that pathogens can be introduced into foods no matter how
many precautions are taken. The five key principles of food hygiene, according to WHO, are:
1. Prevent contaminating food with pathogens spreading from people, pets, and pests.
2. Separate raw and cooked foods to prevent contaminating the cooked foods.

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 3. Cook foods for the appropriate length of time and at the appropriate temperature to kill
pathogens.
4. Store food at the proper temperature.
5. Use safe water and safe raw materials.

Food labels have gradually evolved from simply conveying nutritional information to
communicating the presence of desirable or the absence of undesirable food attributes and/or
production technologies. The development of several niche food markets has been enabled by
labels highlighting the existence of positive or the absence of ―negative‖ food attributes and/or
technologies, effectively targeting consumers valuing this type of information. Examples include
the ―All Natural, No Growth Promoting Antibiotics, No Genetically Modified Organisms (No
GMOs), Cage-free, and recombinant Bovine Somatotropin (rBST-free) food labeling claims.

2.3. Total Quality Management

The quality management applies systems and tools that are intended to assist the implemen‐
tation of quality-oriented way to improve the product and the process, increasing the levels of
quality business and ensuring customer's satisfaction.

Total Quality Management is an extensive and structured organization management approach

that focuses on continuous quality improvement of products and services by using continuous
feedback.

Total Quality Management is a management approach that originated in the 1950s and has
steadily become more popular since the early 1980s. Total Quality is a description of the culture,
attitude and organization of a company that strives to provide customers with products and
services that satisfy their needs. The culture requires quality in all aspects of the company‘s
operations, with processes being done right the first time and defects and waste eradicated from
operations.

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Total Quality Management, TQM, is a method by which management and employees can
become involved in the continuous improvement of the production of goods and services. It is a
combination of quality and management tools aimed at increasing business and reducing losses
due to wasteful practices.

TQM is a management philosophy that seeks to integrate all organizational functions (marketing,
finance, design, engineering, and production, customer service, etc.) to focus on meeting
customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must

strive to continuously improve these processes by incorporating the knowledge and experiences
of workers. The simple objective of TQM is ―Do the right things, right the first time, every
time.‖ TQM is infinitely variable and adaptable. Although originally applied to manufacturing
operations, and for a number of years only used in that area, TQM is now becoming recognized
as a generic management tool, just as applicable in service and public sector organizations. There
are a number of evolutionary strands, with different sectors creating their own versions from the
common ancestor. TQM is the foundation for activities, which include:

 Commitment by senior management and all employees

 Meeting customer requirements
 Reducing development cycle times
 Just in time/demand flow manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking
 Focus on processes/improvement plans

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  Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in manufacturing,
marketing, engineering, sales, purchasing, etc.

Total Quality Management can be set up separately for an organization as well as for a set of
standards that must be followed- for instance the International Organization for Standardization
(ISO) in the ISO 9000 series. Total Quality Management uses strategy, data and communication
channels to integrate the required quality principles into the organization‘s activities and culture.

Food Safety Management System means the adoption of good manufacturing practices, good
hygienic practices, hazard analysis and critical control point and such other practices as may be
specified by regulation, for the food business.

Total Quality Management has a number of basic principles. These principles are below.

Figure 2. Principles of Total Quality Management

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2.4. Sanitary and Phytosanitary (SPS) Measures

An important goal for all governments is to guarantee the safety of food for consumers and to
prevent or limit the spread of pests, the outbreak of disease among plants and animals, and other
health risks from residues (of pesticides or veterinary drugs), contaminants (heavy metals),
toxins or disease-causing organisms in foods, beverages, or feedstuffs. Policies with these
objectives are generally referred to as sanitary (human and animal health) and phytosanitary
(plant health) measures. The scope of SPS covers all relevant laws, decrees, regulations,
requirements, and procedures.

SPS measures are classified into eight major requirements. Six requirements pertain to technical
regulations, one requirement deals with conformity assessments, while another covers all other
requirements. SPS technical regulations take the following forms: (i) prohibition and/or
restriction of the final products to be imported (for example import bans on dairy products from
countries with poor sanitary conditions), (ii) tolerance limits for residues and restricted use of
substances such as food and feed additives used for coloring, preservation, and sweeteners, (iii)
labeling, marking and packaging requirements like specifying the storage conditions, or alerting
to potentially dangerous ingredients such as allergens, (iv) hygienic requirements involving
microbiological criteria of the final product (such as that liquid eggs should be pasteurized or
otherwise treated to destroy salmonella microorganisms), or hygienic practices during production
(such as milking equipment should be cleaned daily with a specified detergent), and other
hygienic requirements; (v) post-harvest treatment such as irradiation and fumigation; and (vi)
other requirements on production or post-production processes, for example requirements on
how plants should be grown or how animals should be raised or caught SPS-related conformity
assessment covers verification that a given SPS requirement has been met. This could be
achieved by inspection (for example sampling and testing) and approval procedures including
verification, assurance of conformity, and accreditation. Examples of this requirement include
tests on imported fruit samples to check against the maximum residues of pesticides, quarantine
requirement such as the quarantine of plants to terminate or restrict the spread of harmful
organisms, and traceability requirements such as in meat products, where information must be

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disclosed about the slaughter house , as well as food–processing factory SPS measures primarily
cover the domestic production of food and plant and animal health, but to the extent that they are
also applied to imported products, SPS may cause harm to foreign trade.

Product groups subject to large numbers of SPS include: (i) live animals and products, (ii)
vegetable products, (iii) prepared foodstuff, beverages, spirits, and vinegar, (iv) tobacco, and
products of the chemical and allied industries, and (v) animal and vegetable fats, oils and waxes.
The SPS agreement created a committee on Sanitary and Phytosanitary Measures (the "SPS
Committee") to provide for the exchange of information about food safety or plant and animal
measures that affect trade, and to ensure the implementation of the SPS agreement. The SPS
Committee, like other World Trade Organization (WTO) committees, is open to all WTO
member countries. Meanwhile, for trade disputes involving SPS, the usual WTO settlement
procedures are resorted to.

2.5. Technical Barriers of Trade (TBT)

Governments have tightened existing rules or have implemented new policies in response to
consumer demands for greater product safety and stricter environmental protection. Countries
have adopted increasing numbers of mandatory technical regulations and voluntary standards.
These regulations and standards, also known as TBTs, define either the specific characteristics of
a product (such as shape, size, or design and performance) or they can pertain to the process and
methods used in its production.

TBT are classified by eight key areas of regulation and procedures. Six areas are related to
technical regulations which include requirements for products and processes. One area focuses
on conformity assessment procedures, while another covers TBT that are not specified
elsewhere. TBT technical regulations include the following: (i) prohibition and/or restriction of
imports for objectives set out in the TBT agreement such as for importers of sensitive products
like firearms and explosives who may be required to register in the importing country, (ii)
tolerance limits for residues and restricted use of substances (for example, the lead content

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permitted in consumer paints), (iii) labeling, marking and packaging requirements (e.g.
appliances carrying label indicating its size, weight and electricity consumption level); (iv)
production or post-production requirements such as the use of environment friendly equipment,
(v) product identity requirements (for example that a product must contain a minimum of 30%
cocoa to be considered ―chocolate‖), and (vi) product-quality or performance requirements, for
example that furniture or fixture must resist a certain temperature.

Like the SPS agreement, the Agreement on Technical Barriers to Trade (the ―TBT agreement‖)
entered into force with the creation of the WTO. The goal of the agreement, which is binding on
all WTO members, is to prevent regulations, standards, testing, and certification procedures from
creating unnecessary obstacles to trade. To this end, the agreement contains provisions that
specifically address the preparation, adoption, and application of regulations that affect trade in
goods by promoting the use of international standards and avoidance of unnecessary barriers to
trade.

2.6. Risk Analysis (SPS, for TBT)

Legislation and standards that serve the intended purposes in guaranteeing food safety and cross
border trade must be science-based. WHO and FAO had earlier, in 1992, stated that risk analysis
must be the basis of any food safety framework, but in developing countries, lack of expertise,
low investment in the requisite infrastructure, and difficulty in collecting own toxicological data
is a hindrance to RA. This challenge is a huge one and requires collaborative and innovative
efforts from all stakeholders. Toxicological exposure data in many developing countries is very
scanty, inaccurate, and usually not timely. To help developing countries to conduct risk
assessment, FAO/WHO studies is a great place to start but unless these are closely related to the
country‘s specifc needs, priority may differ from those of FAO and WHO and depending on
FAO/WHO‘s focus data may take long to inally capture the aspirations of specfic countries.

Risk analysis means the process that consists of three components: risk assessment; risk
management; and risk communication;

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 Risk assessment scientifically based process consisting of (i) hazard identification,(ii)
hazard characterization; (iii) exposure assessment, and (iv) risk characterization.
 Risk communication means the exchange of information and opinions concerning risk and
risk-related factors between risk assessors, risk managers, consumers and other interested
parties; and
 Risk management means the weighing of policy alternatives in light of the results of risk
assessment and, if required, selecting and implementing appropriate control options,
including regulatory measures.

2.7. Traceability and Authentication

Traceability is an important component of quality policy in agribusiness. It is defined by the

international standard ISO 8402 as ‗the ability to trace the history, application or location of an
entity by means of recorded identifications‘. This definition covers both the origin of the entity,
i.e. traceability back to the origin, and the mode of production of this entity, i.e. traceability of
the processes. Traceability back to the origin refers to an animal‘s identity, breed and
geographical origin, which are often important considerations for quality labels. Traceability of
process refers to production systems, including feeding diets, processing and conservation
processes and any adulteration of products. Traceability was initially mandatory only within the
general framework of the certification of protected denomination of origin (PDO) status, and was
used to differentiate niche market products.

However, since the Bovine spongiform encephalopathy (BSE) crisis, it has also been used to
implement food safety. There is currently an increasing consumer demand for information and
guarantees concerning the mode of production of animals, and particularly animal feeding diets.
Bodies operating product certification systems also require control tools, to be able to guarantee
objectively that specification commitments have been fully met. Being able to trace the feed
given to animals is therefore a major challenge for scientists, monitoring and commercial entities
and farmers.

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Traceability can be considered in four distinct contexts and in each it has a slightly different
application:
 For products: it creates a link between materials, their origin and processing,
distribution and location after delivery.
 For data: it relates the calculations and data generated through a quality loop and may
link these back to the requirements for quality.
 In calibration: it relates measuring equipment to national, international or primary
standards, to basic physical constants or properties or to reference materials.
 In IT and programming: it relates design and implementation processes back to the
requirements for a system.

Authentication of food products involves procedures capable of verifying that the product
matches the label statements and that it conforms to the provisions of applicable laws and
regulations. Different types of food fraud, including adulteration, counterfeiting, substitution and
deliberate mislabelling of goods, can occur for a variety of reasons, but are often linked to
financial profit achieved by adulteration intended to improve the perceived quality of products,
mimic an established brand, reduce manufacturing costs or enable shelf life extension. Research
conducted in this area aims to prevent food adulteration and other practices that may mislead
consumers, who are entitled to truthful information about the food they consume as stated under
the Regulation 178/2002. Even though regulations transposed into national and international
legislation mandate the trueness of label information, they are unfortunately unable to prevent
food fraud. The ability to trace and authenticate food products is of the outermost importance for
the food industry, not only for economical, but also for safety reasons. In order to protect
consumer interests and public health, in addition to combating the growing problems of food
fraud and adulteration, scientific expertise and technologies are constantly being developed and
advanced to test the authenticity of different food products. Furthermore, depending on the
nature of adulterants, admixtures can also represent a health risk for the consumer.

Testing of authenticity includes the analysis of ingredients, determination of geographical origin,

and the production technology analysis. The use of rapid, effective and reliable analytical

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methods, when correctly applied to verify authenticity and traceability of a product, represents a
valuable and irreplaceable tool for the authorities which aim to establish control over food
products in market circulation. The authenticity and the origin of ingredients have to be labelled
on the final product. The feeding regime of livestock is fundamental for the properties and safety
of food of animal origin, but this regime is often hidden from the consumers.

Analytical methods that can be used for authentication of products labeled as having a Protected
Designation of Origin (PDO), Protected Geographical Indication (PGI) and Certificate of
Specific Character (CSC) can be divided into several categories. Tools and methodologies
coming as a result of scientific innovation and technological evolution can help to quickly locate
particular sophisticated frauds and adulterations. These methodologies include targeted
approaches in cases when the compound of interest is known and non-target approaches for
screening issues.

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 3. Principles for Food Safety Regulation

3.1. The Structure of Food Law

Generally, Food Law may be divided in two parts: (1) a basic food act, and (2) regulations. The
Act itself sets out broad principles, while regulations contain detailed provisions governing the
different categories of products coming under the jurisdiction of each set of regulations.
Sometimes food standards, hygienic provisions, lists of food additives, chemical tolerances, and
so on are included in basic food control law.

For effective administration of and enlightened compliance with the basic food law, detailed
provisions are needed. In governments where there is a division between the responsibilities of
the legislative and executive branches, the legislative branch enacts the basic law, while detailed
regulations are elaborated and promulgated by the executive agency or agencies responsible for
administering the law.

Inclusion in the law of detailed specifications about food processing, food standards, hygienic
practices, packaging and labeling, food additives, and pesticides may make for difficulties.
Prompt revisions of regulations may become necessary because of new scientific knowledge,
changes in food processing technology, or emergencies requiring quick action to protect public
health. Such revisions can be made much more expeditiously by executive agencies than by
legislative bodies.

In some countries food standards are part of the regulations; in other countries they are separate
enactments. Regardless of whether they are included in regulations or are separate, they become
part of the enforcement structure, and are intended to implement basic food law.

Concerning the principles or general provisions to be included in basic food law, the following
points should be stressed:
 Basic purposes and scope of the law
 Definitions of basic concepts
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 Competence for implementation of the law
 Inspection and analytical procedures and facilities
 Enforcement, procedures for enforcement, penalties
 Regulations for additives, pesticides, contaminants
 Packaging and labeling
 Procedures for the preparation and amendment of the regulations for implementation of the
law

The basic food law is intended to assure consumers that foods are pure and wholesome, safe to
eat, and produced under sanitary conditions. Generally, food law prohibits importation and
distribution of food products that are adulterated, or have labels that are false or misleading in
any context. The proper implementing of such a law encourages fair trade practices through
compliance with the basic provisions of the food law. This protects the honest manufacturer and
dealer against unfair competition. It also stimulates development of the food industry, because
quality control along sound scientific lines tends to promote better consumer acceptance of
foods.

An important part of the food law is the definition of terms such as food, natural food, imitation
food, food additives, adulteration, and food fraud, pesticide residues, food contaminant, and so
on.

According to the US Food, Drug, and Cosmetic Act, a food is illegal (adulterated) if:
 It contains added poisonous or deleterious (harmful) substances that may render it
injurious to health.
 It contains a natural, poisonous, or deleterious substance which ordinarily renders it
injurious to health.
 A raw agricultural product contains residues of pesticides not authorized by the US
Environmental Protection Agency (EPA), or in excess of tolerances established by
regulations of the US EPA.
 Any part of the food is putrid or decomposed.

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 Another example of strict definitions is that basic food law should determine the exact content
of offenses, which can give rise to penal action. Such offenses may be:
 Deliberate adulteration of food products
 Production or marketing of foods containing prohibited or unauthorized substances
 Fraudulent use of labels and trademarks
 Failure of foods to satisfy standards laid down by law
 Violation of hygienic requirements, and so on

3.2. Food Regulation

Food regulations generally cover the following:

 General regulations
 Food standards
 Food hygiene
 Food additives
 Pesticides
 Veterinary drug residues
 Food packaging and labeling
 Food advertising

The general regulations include detailed regulations for guidance of those who enforce food law,
regulations concerning official actions, such as making inspections, collecting samples, making
decisions about serious infractions, and the disposition of seized lots of food. To this group of
general regulations also belong regulations concerning licenses (permits); if firms and/or specific
foods must be registered, the regulations should specify conditions and requirements.
Regulations concerning imported foods should cover all aspects of the handling of imported
foods. It is impossible to make an overview of all the types of regulations; the above example
hopefully will give readers an idea about fields covered by general regulations.

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The Sanitary and Phytosanitary (SPS), World Trade Organization (WTO)‘s—Technical Barriers
to Trade (TBT) agreements are some of the regulations that require attention of all countries
involved in any trans-border trade particularly of agricultural produce. The developing
economies are huge exporters of raw or semi-processed agricultural goods, and these put them
directly under the requirements of these legislations.

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 4. International Food standards (IFS)

Trade in food is difficult to imagine without standards. Food standards give confidence to
consumers in the safety, quality and authenticity of what they eat.

The development of the IFS is based on the ever-rising demands of consumers, the increasing
liabilities of retailers and wholesalers, the increasing legal requirements and the globalisation of
product supplies. All of these points made it essential to develop a uniform quality assurance and
food safety standard.

The basic objectives of the International Food Standard are:

 To establish a common standard with a uniform evaluation system,
 To work with accredited certification bodies and well-qualified and approved auditors,
 To ensure comparability and transparency throughout the entire supply chain,
 To reduce costs and time for both suppliers and retailers.

In every country, standards are an important part of the regulation of food production and food
trade. Food standards and standardization are treated in other contributions to this series. By
setting down a common understanding on different aspects of food for consumers, producers and
governments, standards enable trade to take place. If every government applies different food
standards, trade is more costly, and it is more difficult to ensure that food is safe and meets
consumers' expectations.

4.1. Trends in Food Standardization

A standard is a document that provides requirements, specifications, guidelines or characteristics

that can be used consistently to ensure that materials, products, processes and services are fit for
their purpose. Product standards and code of practice assist manufacturers to produce
commodities that meet minimum specifications for quality and safety.

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Standardization is a process of ensuring uniformity in products and services by use of
appropriate standards. The process ensures efficient utilization of resources through reduction of
wastes. In any country, food standards are established by regulatory authorities and enforced by
governments, food companies and retailers.

No mandatory quality or safety standards exist, which companies that produce, handle, sell or
supply foodstuffs must conform to. However, according to EU regulations food companies must
have an approved own-control system that follows the internationally recognized HACCP
(Hazard Analysis and Critical Control Points) principles. The idea behind HACCP is to help
food companies to focus on these process - and production conditions, which are critical for food
safety.

Different countries have developed different HACCP standards. Danish Standards Association
(DS), Denmark‘s national standardisation body, certifies food companies according to the
Danish HACCP standard, DS 3027. Whereas, e.g., the British HACCP standard focuses just on
critical control points, the Danish HACCP standard incorporates the entire management
information system.

4.2. Overview and Structure of ISO 9001:2000/2008

Through its members, ISO brings together experts to share knowledge and develop voluntary,
consensus-based, market-relevant International Standards that support innovation and provide
solutions to global challenges.

ISO has published more than 22000 International Standards and related documents covering
almost every industry, from technology to food safety, to agriculture and healthcare.

ISO 22000 is applicable to all organizations in the food and feed industries, regardless of size or
sector. Following the same High-Level Structure (HLS) as other ISO management system

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standards, such as ISO 9001 (quality management), it is designed in a way that it can be
integrated into an organization‘s existing management processes but can also be used alone.
ISO 22000 enables organizations to put in place a food safety management system that helps
them improve their overall performance when it comes to food safety. Key potential benefits of
using the standard include:
 The ability to consistently provide food-related products and services that are safe and
meet regulatory requirements
 Improved management of risks in food safety processes
 Demonstrating strong links to the United Nations‘ Codex Alimentarius, which develops
food safety guidelines for governments.

ISO 9001 is the world‘s most popular and most commonly used standard for quality
management systems.

ISO 9001:2000 is a non-industry specific certification that indicates that gives guidelines and
requirements on how to implement and maintain a quality management system.

ISO 9001:2000 Quality Management Systems (QMS): is one of the standards in the ISO 9000:
Quality Management family of standards. It specifies requirements for a quality management
system where an organization needs to demonstrate its ability to consistently provide products
that meet customer and applicable regulatory requirements. ISO 9001:2000 QMS places
emphasis on customer satisfaction and is recognized worldwide as an effective tool for
facilitating regional and international trade because products produced by an organization
certified to the ISO QMS have higher perceived quality in the market and therefore gives an
implementing firm a competitive advantage in the market.

All requirements of this International Standard are generic and are intended to be applicable to
all organizations, regardless of type, size and product provided. Where any requirement(s) of this
International Standard cannot be applied due to the nature of an organization and its product, this
can be considered for exclusion. Where exclusions are made, claims of conformity to this

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International Standard are not acceptable unless these exclusions are limited to requirements
within clause 7, and such exclusions do not affect the organization's ability, or responsibility, to
provide product that meets customer and applicable regulatory requirements.

ISO 9001: 2008: is part of ISO 9000 family of standards that sets out the criteria for a quality
management system. The standard is based on a number of quality management principles
including a strong customer focus, the motivation and implications of top management, the
process approach and continual improvement. Application of the standard ensures that customers
get consistent good quality products and services, which in turn brings many business benefits.
Audits that are important part of the standard are meant to check that the system works. An
organization must perform internal audits to check how its quality management system is
working.

4.3. Overview and Structure of ISO 22000:2005

ISO 22000:2005 is first in family of food safety management system standards designed to
ensure safe food supply worldwide. ISO 22000:2005, requirements for any organization in the
food chain, provides a framework of internationally harmonized requirements for the global
approach that is needed. The standard has been developed by ISO with the help of experts from
the food industry, along with representatives of specialized international organisations and in
close cooperation with the Codex Alimentarius Commission, the body jointly established by the
Food and Agriculture Organisation (FAO) and World Health Organisation (WHO) to develop
food standards.

The ISO 22000: 2005 standard is divided into eight main clauses as listed below:
1. Scope
2. Normative references
3. Terms and definitions
4. Food Safety Management System
5. Management Responsibility

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6. Resource Management
7. Planning and realization of safe products
8. Validation, Verification and improvement of the food safety management system.

ISO 22000:2005 specifies requirements for a food safety management system where an
organization in the food chain needs to demonstrate its ability to control food safety hazards in
order to ensure that food is safe at the time of human consumption.

It is applicable to all organizations, regardless of size, which are involved in any aspect of the
food chain and want to implement systems that consistently provide safe products. The means of
meeting any requirements of ISO 22000:2005 can be accomplished through the use of internal
and/or external resources.

ISO 22000:2005 specifies requirements to enable an organization

 To plan, implement, operate, maintain and update a food safety management system aimed at
providing products that, according to their intended use, are safe for the consumer,
 To demonstrate compliance with applicable statutory and regulatory food safety
requirements,
 To evaluate and assess customer requirements and demonstrate conformity with those
mutually agreed customer requirements that relate to food safety, in order to enhance
customer satisfaction,
 To effectively communicate food safety issues to their suppliers, customers and relevant
interested parties in the food chain,
 To ensure that the organization conforms to its stated food safety policy,
 To demonstrate such conformity to relevant interested parties, and
 To seek certification or registration of its food safety management system by an external
organization, or make a self-assessment or self-declaration of conformity to ISO 22000:2005.

The unveiling of the ISO allowed for Hazard Analysis and Critical Control Point (HACCP) to be
upgraded through the International Standard ISO22000:2005 (Food Safety Management

23
Systems—Requirements for any organization in the food chain). The ISO technical commitee on
food safety created in 1947 is one of ISO‘s oldest and most fruitful commitees, with over 830
published regulations and 125 more in the pipeline. ISO standards have played a crucial role in
promoting global standards, development of harmonization and awareness creation. In many
developing countries, ISO 22000:2005 is not a mandatory food safety requirement and perhaps
due to its complexity, cost of compliance or technicalities, only few companies that most of the
times have qualiied food safety experts manage to get the certiication.

In many developing countries, ISO 22000:2005 is not a mandatory food safety requirement and
perhaps due to its complexity, cost of compliance or technicalities, only few companies that most
of the times have qualified food safety experts manage to get the certification.

Benefits of ISO standards

1. They ensure that products and services are safe, reliable and of good quality.
2. They are strategic tools for minimizing waste and errors,
3. They increasing productivity and enhance customer satisfaction.
4. They level playing fields for developing countries and facilitate free and fair trade.
5. They breaking barriers to international trade which assists food companies access new
markets,
6. They help to harmonize technical specifications of products and services making industry
more efficient

24
 5. Dairy Development Policy, Standards and Regulations in Ethiopia

The Ethiopian dairy system can be paraphrased by the statement that ―though there is huge
livestock population with high potential for milk and dairy production and there are ever more
people tend to drink milk and consume more dairy products yet milk production is still too low
in the country to satisfy the needs which is hampered by bucketful of paradoxes, hopes and
heartbreaks‖. The Ethiopian livestock population is the highest in African continent and there has
been efforts exerted to develop the sector, but the outcomes are insignificant. There is increasing
population with improved disposable income at some sectors of the society, especially in the
growing urban areas, to absorb the produce. Despite the different technological advances and
increasing efforts of the government and the private sector as well as bilateral, international and
development oriented NGO‘s involvement, the change expected could not be realized and is
frustrating (the heartbreaks).

The total volume of milk produced in Ethiopia increased over the last 15 years from less than 1
billion liters to 3.06 billion liters in 2015/16. The dairy sector contribution to the national Gross
Domestic Product is expected to increase in the years to come too. The overall country milk
production expected to surpass existing milk demand as per GTP II period (2015–2020)
projection with about 2501 million liters that is 47% above. As per the plan the surplus of milk
could then be substituted for imported milk products and used domestically for new or additional
industrial uses (e.g. in the baking industry), or exported as milk powder to raise foreign exchange
earnings.

The milk is produced by 11.34 million milking cows are kept within five different dairy farming
systems: (i) Urban and periurban systems that is the emerging smallholder dairy farming; (ii)
Specialized commercial intensive dairy farming; (iii) Mixed crop livestock system, the
traditional highland mixed farming; (iv) Pastoral livestock Farming, (v) Agro-pastoral system,
that is the lowland mixed livestock farming. The rural dairy system, which includes the last three
groups, contributes 98% of total production, while the first two groups contribute only 2% of the
total national milk production but main sources for big cities milk consumption.
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5.1. Milk Safety and Standards

From the standpoint of the highly perishable nature of milk, care should be taken to reduce post
harvest losses and improve efficiency to convert the milk to products likely to value add during
processing from production through consumption including activities during collection,
transportation, chilling, processing and distribution.

Prompt cooling or chilling of milk at a temperature of 5°C or below is necessary to minimize

microbial growth and prevent milk quality deterioration during handling, storing and transporting
before the raw milk being processed. In order to facilitate bulking of raw milk supply and
transport the incoming milk, refrigeration facilities are provided at points of collection and
transport means to maintain the temperature as much as possible.

Furthermore care should be taken at reception and processing in order to supply the consumer
with milk, which is clean, sweet, and free from unacceptable odor and flavor, and which does not
carry or transmit diseases. Hence proper quality control at every stage of production, collection,
storing, transportation, processing and retailing is essential. This could be achieved if the
Government leads the implementation of official controls through legislation and directives and
the organization of associated capacities on enacting on quality control which calls for
certification, inspection and control in the level expected are in place.

For safe use of milk and dairy products and increased efficiency of production of quality dairy
products, setting standards and minimum load of essential bacterial concentration with
acceptable threshold levels must be set. It should then be acceptable internationally and needs to
be harmonized with Common Market for Eastern and Southern Africa (COMESA) and World
Trade Organization (WTO).

In addition, to minimize losses of milk and dairy products and safeguard the population from
health hazards, proper setting of legislations on production, processing and marketing is
essential. On formal setting, this should follow the WHO/FAO code of practice and use of

26
Hazard Analysis and Critical Control Point (HACCP) system. This would require the support or
back up of a food control laboratory capable of a range of milk quality and safety tests.
Awareness creation of the public in quality and healthy food products utilization and training of
all value chain actors is also vital in implementation of the safety measures.

Hence development and existence of standards on milk and dairy products are required at
national level and to cope up with international requirements. The need for quality and standards
as stated in published data by the Ethiopian Quality and Standards Authority, among others are
therefore:
 To protect the health and safety of the end users,
 To establish on effective basis for commercial transactions,
 To enable order to be placed in terms that has clear and common understanding to both
producers and consumers,
 To create confidence to competitiveness in the regional trade like COMESA and global
market,
 To enhance greater product quality, better production and delivery efficiency and
 To enables producers to produce safe and wholesome product

In this conjunction the Ethiopian Quality and Standards Authority (QSAE) had developed milk
and dairy products standards in the year 2001. These standards were then revised in 2005 to be
harmonized with the Common Market for Eastern & Southern Africa (COMESA) accepted
Standards. QSAE in collaboration with other stakeholders had prepared a Recommended Code
of Practice for General Principles of Food Hygiene, Code of Practice and standards for
Pasteurization and handling of milk and Specifications for Whole Milk (pasteurized and fresh
whole milk). In the revision new product standards like Ultra High temperature Milk (UHT milk)
are included and consideration was also made to address health and safety issues like pesticide
residue, Antibiotics residue and microbiological requirements on most of the revised Standards
specification. In addition, most of the test methods in this revision of milk and dairy product
standards are ISO adopted standards.

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However, since Certification is not mandatory for milk and dairy products in the country as it is
not included in Regulation No. 12/1999 of the Ethiopian Quality and Standards Authority,
regular control on the industry is not practiced and is left for voluntary inspection. Quality
control on milk collection and reception is not practiced and self-regulated by collectors and
processors driven by demand and supply rather than on standard terms.

5.2. Improving and Institutionalizing Dairy Quality Control

For clean milk production, at least two stages of control mechanism are essential. These are
certification and inspection where proper food production, processing and marketing following
the WHO/FAO code of practice and use of HACCP could be applied.

In a country where formal milk and dairy marketing is not developed and Certification is not
mandatory on the process quality control on the process and product would be futile exercise. It
was reported that certification is only on voluntary and request basis, and it is only done when
any milk processing industry feels that it is ready and has satisfactory standards as set by the
Authority and the HACCP.

Identification of cause of risk or hazardous conditions done early and at every stage in the milk
and dairy products manufacturing chain should be the prime objective for safe guarding the
health and supplying standard abundant milk and dairy products for the population.

This would require the support or back up of a food control laboratory capable of a range of milk
quality and safety tests. Awareness creation of the public in quality and healthy food products
utilization and training of producers, processors and milk and dairy products handlers are also
vital in implementation of the safety measures. Inspection on the other hand is rare exercise as
there is no standard food quality control laboratory.
Hence, critical issues to be addressed and support services required for efficient production of
clean milk should be:

28
Quality control
 An effective health service for regular vaccination and health check of animals against
diseases,
 Well equipped collection centers should be set in strategic areas and coverage,
 Organize producers both smallholders and the private to form milk collection and marketing
for ease of quality controls,
 Provide extension and education on importance of clean milk production and animal health
care,
 Create awareness among the public on clean milk utilization,
 Empower women to be involved in milk production, processing and marketing since the
milk belongs to them

Inspection
 hygiene and safety established on critical control points (HACCP),
 Establishment of standard quality control laboratory,
 Mandatory certification and inspection service,
 Implementation of standards and legislations on milk quality and assurance

5.3. Challenges, Constraints and Recommendations in Reference to Milk and Dairy

Products Standards and Quality

Quality and safety of milk and dairy products are central to production enhancement and for safe
guarding public health point of view. Based on the background presented and the requirements
for clean milk production and hence minimizing post harvest losses the challenges, constraints
and recommendations are summarized as:

Challenges
 Safety and standard of milk and dairy products supplied to the consumer not guaranteed,
 Post harvest handling problem causes quality deterioration of milk and dairy products;

29
Constraints
 High disease prevalence of zoonotic livestock diseases,
 Lack of aggressive livestock disease control,
 Lack of effective quality control at different stages of milk production and transaction,
 Lack of efficient liquid milk collection and cooling facility and transportation means to
processing sites,
 Poor infrastructure, road access etc
 Under developed milk processing and marketing system,
 Lack of enforcement of quality control regulations and standards

Policy Recommendation

Quality control
 An effective health service for regular vaccination and health check of animals against
diseases,
 Well equipped collection centers should be set in strategic areas and coverage,
 Organize producers both smallholders and the private to form milk collection, processing and
marketing for ease of quality controls,
 Provide extension and education on importance of clean milk production and animal health
care,
 Create awareness among the public on clean milk utilization,
 Empower women to be involved in milk production, processing and marketing;

Inspection
 Hygiene and safety established on critical control points (HACCP),
 Establishment of standard quality control laboratory,
 Mandatory certification and inspection service,
 Implementation of standards and legislations on milk quality and assurance;

30
5.4. The Policy Environment
Early dairy development efforts in Ethiopia were basically treated under programs within
livestock sub sector and/or agriculture sector. During the Imperial period these were based on
either reviews carried and the Government‘s Five-Year and Annual Plans and on purpose and
area specific dairy projects like the Addis Ababa Dairy Development Project.

There was then a shift in emphasis during the 1980‘s when Livestock Sector Review (LSR) was
carried and the Ten Year Perspective Plan on livestock Development was prepared during the
Derg period. The study and development plan had given emphasis and directions on dairy
development through development of projects on dairy (DRDP) and Forage and health
development (F4LDP) on the state, cooperative and smallholder involvement underlining
introduction of appropriate technology for realization of targeted outcome. Though the study had
highlighted private involvement as key area for improved production it was basically on
smallholder dairy and fattening. These were very much oriented to smallholders and biased to
cooperatives as it was during the Socialist era.

Later development of the Ruminant Livestock Strategy (1993) had given directions of the
subsector by underlining the strategy under the two ecological categories and classifying the
constraint areas in animal breeding, health, animal nutrition and marketing. However, this was
used as base but not implemented fully. The National Livestock Development Program
developed in 1997 also served as a base for the implementation of the National Livestock
Development Project, which has components in the constraint areas - namely improving
breeding, forage development and capacity building of veterinary services.

In general policies and strategies aimed at creating enabling environment for investments in the
dairy development in Ethiopia are part and parcel of the Ethiopian rural development policy. As
referred in several documents the Ethiopian Rural Development policy, based on the principles
of promotion of labor-based technologies and land capitalization is the governing policy for
agricultural and livestock development in general dairy development included in livestock. The
strategy is basically aimed at increasing agricultural production for both domestic and

31
international markets; the enhancement of which is believed to serve as the catalyst for economic
growth and could therefore contribute significantly to achieving food security, creating
employment and reducing poverty at the national and household levels.

5.5. Livestock Development Policy

The document indicated that the policy on livestock development is set with overall aim of
increasing the contribution of livestock to the socio-economic development of the country with
specific objectives of achieving food self-sufficiency in animal products, increasing employment
and income, increasing industrial material supply, and increasing foreign currency earnings.

As component and part of the livestock development the policy dairy development encompasses
strategies on:-
 Enhancing management of indigenous dairying cows,
 Improving, multiplying, and distributing improved local breeds,
 Promoting establishment of dairy farms in potential stratified areas using appropriate
pure and improved dairy breeds,
 Promoting dairy cooperatives and firms,
 Characterizing local breeds, developing ranches for production of pure dairy breed and
distribution,
 Establishing a national centre for dairy Management Information System,
 Identifying and prioritizing milk shed areas, and
 Enhancing and regulating quality of milk and milk products.

In relation to forage production, strategies include:-

 Improving productivity and use of pasturelands through limiting carrying capacity,
 Improvement of livestock water supply facilities, making use of appropriate forage
technologies (low land areas),
 Expanding and integrating use of improved forage species with soil and water
conservation practices,

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  Identifying, enhancing, and using agricultural residues and industrial by-products, and
 Developing mechanisms for keeping emergency feed reserves in dry seasons.

Regarding animal health service delivery the focus given to be:-

 Control and eradicate epizootic animal diseases through setting priorities for list "A" animal
diseases, and
 Establish a functioning information and communication system.

Other key animal health strategies on dairy include:-

 Strengthening of animal and animal products quarantine and inspection services,
 Adopting and complying with OIE policies and regulations through harmonizing with the
current Ethiopian situation,
 Issuance of certificate of competence for processing and exporting institutions,
 Health and sanitary certificates for import and export of animals and animal products and
 Regulating production, importation and distribution of drugs and equipments in the field with
respect to standards, quality, etc.

5.6. Country Level Proclamations and Regulations on Livestock and Dairy

A number of laws, regulations, and decrees related to livestock existed since the late 1940‘s.
Between 1949 and 1971 there were four proclamations and amendments issued for the control of
animal diseases. Recent proclamation is the Animal Disease Prevention and Control issued in
2002 that replaced the Animal Disease Control of 1961.

Animal disease prevention and control (No 267/2002)

Refers to prevention and control of diseases; outbreak notification authority, provisions,
declarations, measures, and power, establishment of quarantine stations, entrance and exit to
ports for export of livestock and livestock products, international animal health sanitary
certification, and animal movement permit. Further more it aims at enhancing the disease

33
reporting, investigation and surveillance mechanisms at federal and regional levels. It also sets
modus operandi for intervention and control of disease outbreaks.

Regulation to control movement of animal and transportation of animal products and

byproducts
Sets mechanisms to prevent spread of infectious diseases out of the foci of occurrence and
increase confidence of recipient/importing countries.

Regulations to provide for the registration and licensing of animal health professionals
Issue legislations on the registration of animal health professionals on delivery of services and
other provisions.

Guidelines
There was no guideline developed on dairy but most are on meat inspection, hygiene and
construction of export abattoir, and Operational procedures of export abattoir.

Cooperative Societies Proclamation (No 147/1998)

The Proclamation allows establishment of cooperative societies to actively participate in the free
market economic system. The provision elaborates that cooperative societies are voluntary,
democratic, and autonomous, self-help organizations controlled by their members. Specific
provisions and guidelines having implication for livestock are:
 A minimum of ten-members to form a society,
 Any cooperative society is a 'limited liability' organization that can be established at different
levels up to the federal level,
 Allows a society to engage in either production, service-rendering activities, or both,
 Entitles members to receive dividends according to their share,
 Puts restrictions on interest received from its members not to exceed the current interest rate
of the bank,
 Restricts a society from extending loans to others who are not its members or a society
established under this proclamation,

34
 Entitles cooperative societies a right to exemption from income tax,
 Allows cooperative societies to acquire land and to receive other government assistances
through training and other means, not withstanding the incentives permitted by investment
codes
Public health proclamation (No 200/2000)
Public health proclamation gives Ministry of Health (MoH) the mandate to "inspect any premises
where there exists a situation endangering public health".

Proclamation to establish Quality and Standard Authority of Ethiopia (102/1998)

Objectives of Quality and Standard Authority of Ethiopia include the following:
 To promote and assist establishment of appropriate quality management practices as integral
and yet distinct management functions in the social and economic sectors,
 To promote and co-ordinate standardization at all levels in the country,
 To assist improvement of quality of products and processes through promotion and
application of Ethiopian standards;

The powers and duties to achieve these sets of objectives include:

 To formulate, approve, declare, and issue Ethiopian standards for general and specific
applications as may be necessary,
 To specify quality marks and certification of conformity,
 To popularize quality and standards amongst users and public,
 To establish a documentation and information center for the provision of quality and
standards related information;

Investment proclamation (280/2002):

As a result of the New Economic Policy and the series of reforms since 1992/93 an enabling
environment was created for both domestic and foreign private investment. In realizing the role
of private activity in generating growth and supporting poverty reduction the National Poverty
Reduction Strategy had dwelt and emphasized participation of the private sector as part of
driving forces of change in achieving food security.

35
Investment regulation (84/2003)
Stipulates the following incentives that are relevant to livestock production, processing and
marketing:
 Exempts from income tax for five-years, those manufacturing, agro-processing or
agricultural production enterprises that export 50% of their products, or supply at least 75%
of their products to an exporter as a production input. Depending on circumstances, the
exemption will be extended to seven years and above,
 Provides two-year exemptions from income tax against export of less than 50% or supply of
products only to domestic market - the latter being subject to the decision of the Board,
 Where the investment takes place within the emerging regions of the country, an additional
one-year tax exemption is allowed,
 Two-year income tax exemption for expansion or upgrading of existing enterprises that will
export 50% of the product and increase in value of the production by 25%,
 In case of incurring losses by the enterprise, the regulation allows the carrying forward of the
payment of the income tax by half the pre-stated exemption period after expiry date,
 To assist improvement of quality of products and processes through promotion and
application of Ethiopian standards;

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 6. International Bodies Dealing in Standardization

6.1. International Standardization Organization (ISO)

The International Organization for Standardization (ISO) is an international organization with its
headquarters, the ISO Central Secretariat (ISO/CS), based in Geneva, Switzerland. It is a
membership network of 163 national standards bodies (NSBs) as of June 2016, comprising both
public and private entities. ISO develops voluntary, consensus-based, market relevant
international standards that support innovation and provide solutions to global challenges.

It is the world's largest developer of voluntary international standards and facilitates world trade
by providing common standards between nations. Over twenty thousand standards have been set
covering everything from manufactured products and technology to food safety, agriculture and
healthcare. Use of the standards aids in the creation of products and services that are safe,
reliable and of good quality. The standards help businesses increase productivity while
minimizing errors and waste. By enabling products from different markets to be directly
compared, they facilitate companies in entering new markets and assist in the development of
global trade on a fair basis. The standards also serve to safeguard consumers and the end-users of
products and services, ensuring that certified products conform to the minimum standards set
internationally. ISO forms a bridge between the public and private sectors.

6.2. Codex Alimentarius Commission (CAC)

The Codex Alimentarius Commission was established by FAO and the WHO in 1963 as part of
the Joint FAO/WHO International Food Standards Programme. It is the single most important
international reference point for food standards. The joint nature of Codex is the key to its
success. All actors along the food chain need to work together to ensure safe food in every home.

Codex Alimentarius Commission (CAC) is an intergovernmental body that is involved in

development of food safety standards and is officially recognized by WTO as the arbitrator in

37
conflicts involving food safety legislation between countries or companies at the international
level. It focuses on ensuring consumer safety and promotion of trade. The CAC‘s legislation
should only be a bare minimum and since they are based on science, they avail the platform that
supports countries to provide safe and nutritious foods to their domestic as well as for
international market. On this score over 50 African countries are members of CAC and this puts
them at a platform to engage on food safety legislation.

Though CAC has done a great deal in the development of food safety standards, it has faced a
few challenges that derail its efforts in harmonizing food safety regulations. First, it meets
annually and this means the maters agreed at such meetings do not receive speedy progress.
Second, the participants to these commitees are not always food technologist with grounding on
food safety; furthermore, they may strive to secure the interest of the countries they represent as
a priority. The African Union (AU) has formed expert commitees that mirror those of Codex.
These food safety experts‘ commitees now can offer thoughts considered as Africa‘s position on
food safety maters. This is a key development as it offers a focal point of responding and
dissemination of information. The AU is also fronting the formation of the African Food Safety
Authority that will set standards for monitoring Africa‘s food supply chain, an equivalent of the
European Food Safety Authority (EFSA). There must be a good political will for food safety
legislations to work in the developing economies and this initiative being spearheaded by the
political arm of AU may just be the right recipe for stimulating local action.

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 7. Country Specific Food Standards

7.1. Kenya Dairy Policy

The Kenya Dairy Industry Policy covers key issues relating to quality control and standards,
consumer safety, consumption, promotion of local dairy products and exports.

To promote dairy production and marketing the government of Kenya (with the support of its
development partners and the private sector) has been implemented variety of policy instruments
and strategies. These include:
 Regulatory framework,
 Feed prices and quality,
 Breeding and artificial insemination services,
 Tick control,
 Veterinary clinical services,
 Investment in research,
 Extension services,
 Pricing and taxation policies,
 Market and trade policy, and promotion of marketing services such as through cooperatives,
 Expansion of rural infrastructure (e.g., roads, electrification, water, etc);

Main Lessons from Kenya’s Dairy Policy

Legal and statutory framework

A conducive legal regulatory framework is important in facilitating growth and development in
the dairy industry and the economy. The regulatory framework for the dairy industry of Kenya
consists of various laws enacted in a number of legal documents. These acts include the Dairy
Industry Act (CAP 336, Laws of Kenya) which was first enacted in 1958 and established the
Kenya Dairy Board (KDB) to regulate the dairy industry. The Act has been revised in the past
(1962, 1972 and 1984) with the aim of improving sectoral performance in the dairy industry.

39
The main functions of the KDB include (i) licensing of retailers, (ii) controlling of milk
movement and quality, and (iii) appointment of dairy inspectors.

Another important regulation is the Co-operative Development Act (Cap 390, Laws of Kenya),
which governs all dairy marketing co-operatives. Despite good performance in many cases, most
dairy co-operatives have not allowed sufficient farmer participation in their management. The
Act was revised in 1997 to ensure greater farmer control, and less government intervention.

The Companies Act (Cap 486, Laws of Kenya) is another important legal and policy framework
that provides for registration of companies engaged in various business transactions in the milk
supply chain. These include (i) registration and licensing of milk processors, (ii) licensing of
retailers, (iii) regulations of milk transportation, and (iv) inspectors‘ regulations (by KDB).
Violation of these regulations is liable to prosecution.

Another statutory body, the Kenya Bureau of Standards (KEBS) promotes adherence to
standards in industry and commerce, and to undertake educational work in connection with the
standards. The KEBS is established under the Standards Act (CAP 496, Laws of Kenya). These
standards are intended to safeguard both consumers and producers for product quality and for
fair commercial dealings. KEBS has specified the methods of analysis to be followed for various
products (including dairy products) and has powers to enforce these standards even by
prosecution, if necessary.

Feed prices
To reduce the cost of animal feeds, the government waived duty on imported feed ingredients
and there are no additional taxes on manufactured feeds. There is generally greater feed
availability and usage in most parts of the country, although its quality is sometimes suspect.

Animal breeding programs

The Kenya Stud Book was established to keep animal breeding records in the early 1920s. Since
then, major cattle breeding-related activities have been introduced. These include Livestock

40
Recording Centre (LRC) to keep all livestock statistics and performance, Dairy Recording
Services of Kenya (DRSK) - formerly Kenya Milk Records (KMR) – to keep all milk
performance data; Central Artificial Insemination Station (CAIS) to produce semen and the
Kenya National Artificial Insemination service (KNAIS) to distribute semen (Connelly, 1998).
To assist further the adoption of the higher yielding inputs and enhance dairy productivity, duties
were waived on imported semen and embryos.

Milk marketing
The informal milk marketing has enormous potential for off-farm employment generation.
However, the efficient operation of, and potential evolution towards higher standards with the
raw milk market has been impeded by the non-recognition of raw milk traders due to public
health concerns. The mobile traders have often operated without trade licenses and actively
sought innovative ways and means to circumvent such official impediments to business
operations. Research has shown that the quality of milk sold by the mobile milk traders is not
significantly different from those with fixed premises. In 2004 and 2005, the Kenyan
Government has taken steps to ―formalize‖ and legalize raw milk marketing, through training
and certification of small scale traders. Where appropriate, institutions should explore alternative
systems, such as self-regulation and partnership with the private sector. The required legislation
to safeguard these policy changes is currently making its way through the legislative channels to
be enacted.

Similar changes have occurred or are occurring in other countries in East Africa, particularly
Tanzania and Uganda. Thus even as income and urbanization trends move towards a larger share
of the formal market, this type of policy shift can mainstream the informal sector, and raise the
quality of milk it handles, bridging the informal-formal gap as the industry develops.

Dairy business Environment

To address limitations in the dairy business, the Kenyan government will work closely with
stakeholders in the industry to address problems pertaining to dairy business environment. Areas
of priority will include:- guide the industry towards self-regulation path; development of

41
contractual norms and corresponding legal mechanisms, low cost dispute resolution mechanisms,
and industry codes of practice; facilitate the formation of a stakeholder driven ethical committee
to handle arbitration issues in the industry; facilitation of the organization of interest groups
along the value chain to improve performance in the sector; and support the setting up of an
industry umbrella association within the sector where stakeholders can dialogue and lobby. A
tribunal to handle livestock disputes will be established to arbitrate issues on dairy industry,
among others.

Renewed public investment in livestock services

It‘s apparent that the withdrawal of government support to livestock services in the 1990s was
not matched with increased provision of private services. Smallholders in particular, have lost
access to some of these services. In order to support continued opportunities for resource poor
farmers to increase productivity and opportunities in dairy, it‘s likely that renewed public
investment in services will be required until viable, appropriate private services are widely
available.

7.2. Pakistan Dairy Policy

In Pakistan two broad sets of policy measures influenced the dairy sector growth directly and/or
indirectly: Policies, institutions and programs for improving dairy production and marketing;
 Public investment in livestock extension and services,
 Promotion of dairy cooperatives,
 Targeted dairy development projects,
 Public sector investment in milk processing and marketing,
 Facilitating private sector investment in dairy processing,
 Import tariff on milk powder and income tax exemption to dairy farmers;

Other policies that indirectly impacted the dairy sector;

 Promotion of green revolution technologies,
 Exchange rate policies,

42
 Tax policy for processed milk products and agricultural inputs,
 Regulations banning animals in metropolitan city areas,
 Regulation to control milk quality

Main Lessons from Pakistan’s Dairy Policy

Several policy, institution and program areas stand out as major contributors to dairy
development through improvement in production and marketing.

First, increased public investment in extension, research and other support services, especially
investment in artificial insemination and other breeding services and veterinary services,
contributed significantly to yield and output growth by improving the genetic, health and overall
quality of dairy animals.

Second, targeted dairy development projects in specific parts of the country for promotion of
improved feed, management and genetics as well as dairy cooperatives to improve market access
for inputs, services and products contributed to dairy growth.

Promotion of green revolution technologies

Among the policies that indirectly impacted on the dairy sector, the promotion of green
revolution technologies stand out clearly as it contributed to dairy growth from both supply and
demand sides.

On the demand side, higher cereal productivity and rural income enhanced demand for livestock
products in the rural areas, and higher cereal productivity reduced real prices of cereals for urban
consumers, so enhanced their ability to increase consumption of dairy products. Thus green
revolution induced demand growth acted as a pull factor for dairy development. On the supply
side, three interrelated factors emerged that contributed to enhance dairy growth.

First, mechanization of various farm operations at mature stages of green revolution released
draft animals thereby created room for increased number of dairy cows to be raised with

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available feed. Cattle were more used for draft purposes, so mechanization allowed an increase
in the buffalo population, and a higher milk yielding animal. Higher cereal productivity also
released some land to increase production of green fodder for dairy animals. These factors
together resulted in higher yield per animal and in higher output.

Second, overvalued exchange rate policies pursued in the 1960s protected the domestic market
but stifled growth by giving a reasonable income from low productivity and providing
disincentive to invest in productivity improving technologies. Combined with this, the policy on
high import duty on imported dairy products, mainly powdered milk, and also soft growth as it
discouraged domestic producers to be competitive.

7.3. Indian Dairy Policy

Main Lessons from Indian Dairy Policy

Having achieved the status of the largest milk producing nation in the world, India clearly offers
a number of important lessons for dairy development, and the policies associated with it.

Regulatory Environment in the Dairy Sector

The Indian dairy industry has grown and diversified enormously in the last few decades. To
ensure the proper development and growth of this sector, the government has formed
variouslaws and regulations. The regulations are briefly discussed below.

Food quality and safety

Food quality and safety issues were regulated by a number of acts and agencies. The Ministry of
Food and Consumer Affairs is the main agency dealing with issues of food safety. There are
other ministries/departments, which are involved in food regulations.

The Prevention of Food Adulteration Act is the main food safety act enforced by the Ministry of
Health and Family Welfare, Government of India. It focuses on the establishment of regulatory
standards for food safety and applies equally to domestic and imported foods including livestock

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products. It covers various aspects of processing and distribution such as colour, preservatives,
and pesticide residues, packaging, labeling and sales regulations.

The Bureau of Indian Standards creates standards for food products. The Standards of Weights
and Measures Act establishes fair trade practices with respect to packaged commodities, and
makes it essential for the manufacturers to display information about the nature of the
commodity, date of manufacture and retail price on the label.

Besides these, there are a number of commodity specific quality control orders issued under the
Essential Commodities Act. Milk and Milk Products Order (MMPO) has promulgated for dairy
products. This is applicable to both the domestic and imported products. The MMPO regulates
the production, distribution and supply of milk products. It establishes sanitary requirements for
dairy products, machinery, premises, and establishes quality standards for milk and milk
products.

Agricultural Products (Grading and Marketing) Act, 1937, commonly known as AGMARK is
enforced by Directorate of Marketing and Inspection under the ministry of rural development.
Under this Act, Grade Standards are prescribed for agricultural and allied commodities. Grading
under the provisions of this Act is voluntary. Manufacturers who comply with standard laid
down by DMI are allowed to use "Agmark" labels on their products.

The fact that food safety regulations are enforced by these multiple agencies and Acts is
considered to be restrictive to the growth of food processing industry. Recognizing the growth
potential of food processing and to create an enabling environment for value addition to
agricultural products the Government of India has taken an initiative to create a Unified Food
Law by merging/amending all the existing food laws taking into consideration the global food
quality standards. The Unified Food Law, known as the Food safety and Standards Bill, was
introduced in the legislature in August 2005 and after approval from the parliament all the prior
acts/regulations related to food would be repealed. The proposed act would be implemented and
coordinated by a single agency.

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Multiplier effects of the Green Revolution - In general, development of the crop sector and the
infrastructure related with this development during the period of the Green Revolution have
played a key role in dairy development. The role of irrigation and fertilizer through increasing
year around availability of fodder, and through broader innovation processes of farmer
technology uptake, have been some of the main driving forces to dairy development in India.
Improved dairy animals – Improved (through selection) and cross-bred cattle, as well as dairy
buffaloes, have played a key role in India‘s dairy development. The success of cattle crossed
with exotic dairy genes offers important lessons for similar approaches in tropical settings.

Meeting traditional demand – Related to the growth in demand, was a shift by formal market
processors to traditional Indian products such as paneer, chhena, khoa, gulab jamun, products
formerly supplied almost entirely by the informal market. This created new market opportunities,
and allowed the formal market to build on traditional demand patterns, rather than try to create
demand for Western style products. Some of the latter, however, such as sweetened yoghurt and
ice cream, also helped create new markets.

Raw milk and traditional markets - These markets continue to dominate the dairy industry in
terms of market share. By virtue of their huge scale, they have clearly played a role in being the
primary mechanism for linking growing demand among consumers with increased production
coming from producers. A key policy ingredient in this role was the approach by regulators and
policymakers generally towards small scale informal market activity. That policy stance,
although not stated but nevertheless implemented and observed, has allowed the relatively
efficient operation, organized and mostly competitive milk and dairy product chain.

Cooperative development:-Although the Operation Flood and the role of dairy cooperatives is
always mentioned as a key factor in the growth of the dairy sector in India, the empirical
evidence suggests that the role of cooperatives in growth was not as direct as generally stated.
Cooperatives still account for a small proportion of dairy market share, and there is little
evidence to show that development of milk markets through cooperatives has driven growth in
dairy. However, the evidence does suggest that dairy cooperatives have had impact on the supply

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side, in fostering the introduction of new technology, particularly improved dairy cattle. The role
of cooperatives may thus have been more in terms of supporting technology development and
uptake.

Market linkages several factors have worked to ensure that smallholder dairy producers can
retain participation in gradually changing market. Key among these has been dairy cooperatives
in a number of States, to which tens of millions of smallholder rural milk producers belong and
rely on to sell their milk. Another increasingly important avenue for reliable market linkages that
provide scope for increased productivity and scale are contract farming arrangements with
private dairy processors, such as those with Nestle in Punjab.

Support continued animal breed improvement- India also provides a strong case for
continued investment in improved breeds of cattle and buffalo. With the proportion of crossbred
dairy cattle in the population at over 70% in some States (including crosses between indigenous
breeds), it is clear that exotic dairy genes can play an important role in even semiarid, high
temperature settings. The regional analysis shows that improved animals have been critical to
dairy productivity and development. Further public support to this process, as well as through
cooperatives, is central to the continued progress of the dairy industry.

7.4. Swaziland

Important policy issues and relevant strategies followed by the Kingdom of Swaziland which are
more applicable to Ethiopian dairy industry are briefly summarized as follows:

The Livestock marketing policy

The strategy to be followed is the improvement of the distribution of better and tested bull from
breeding stations and the training of farmers to keep breeding records for improved herd quality
and performance.

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The processing industries policy
Promote primary processing industries and participate where and when necessary through
minimum shares to ensure their maturation and the eventual participation of producer groups
through the purchase of the Government shares.

The strategy to be followed in the Swazi case as their primary objective was on beef market the
strategy was on beef fattening and sale. Where as in our case the policy indicated could be used
in dairy processing and market as the sector need high financial injunction to invest in milk
collection, transportation and processing.

The Cost recovery and commercialization of livestock development Policy

Commercialization of livestock development through the introduction of a cost recovery policy
and the rational use of Government revenue in all matters of animal health and production.

The strategy to be followed are 1) privatization of the veterinary clinical services in such a way
as to save Government revenue and improve the delivery of veterinary services to the farmer and
2) creation and management of livestock development funds and revolving funds where levies
and or contributions for the specified commodity could be deposited for the development of that
particular industry.

The Promotion of Livestock enterprises and entrepreneurship policy

Promote small holder livestock enterprises and a spirit of entrepreneurship among farmers.

The strategy to be followed are 1) introduction of appropriate credit schemes and packages and
the training of farmers on the use of such schemes within the cost recovery framework, and 2)
facilitating access to all available lines of credit by qualifying producers and entrepreneurs and
the use of livestock funds and revolving funds on a cost recovery basis.

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The maintenance of good range and pasture management practices Policy
Develop and maintain a high level of range and pasture management in the country with soil and
water conservation practices.

The strategy to be followed among others pertinent to Ethiopia are 1) establishment of farmers
groups in communal grazing areas on pasture management, 2) introduction of grazing area
fencing schemes and 3) establish stocking rates for the different stratified grazing areas and to
enforce through the livestock grazing group.

The National herd improvement Policy

Improve the national herd and ensure the maintenance of internationally accepted standards of
livestock production and breeding.

The strategy to be followed among others pertinent to Ethiopia are 1) establish clear breeding
objectives and programs, 2) registration of breeders and breeders associations and monitoring of
livestock breeding activities in the country.

The Livestock nutrition Policy

Develop and use internationally acceptable standards of livestock nutrition and feeds quality and
to protect the consumer from sub-standards feeds and their dumping.

The strategy to be followed among others pertinent to Ethiopia are 1) establishment of a national
animal feed standards to be met by feed manufacturers and importers and to protect animal feeds
consumers from the use of costly but very low quality feeds in the market, 2) Provision of a
feeds quality assurance service to farmers, feed manufacturers and distributors.

The Legislation Policy

Enforce compliance and ensure administrative efficiency and harmonization of established
policies, regulations on animal health, production, processing and trade.

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The strategy to be followed among others pertinent to Ethiopia is the enforcement of legislations
that will support and enforce compliance with established policies, and regulations for the
development of a sustainable livestock industry and the protection of the consumers.

7.5. Botswana

Botswana‘s National Master Plan for Arable Agriculture and Dairy Development and the policy
thereof indicates the country to follow intensive development in both sectors as in irrigated
agriculture and dairy development. As the country is classified as an upper middle income
country and due to its agro climatic factors, it is more inclined to intensive agricultural
development. This is well demonstrated by the well developed beef industry. Hence the policy
on dairying in the same token and the strategies envisaged in the document follow the same
pattern of high capital seeking large scale dairy farming. Thus the policy indicated will not be
compatible to our needs of dairy development.

In the case of Botswana expansion of milk production was envisaged with the use and
importation of dairy breeds of cattle and the Government will have high investment and
collaborate and encourages investors to promote dairy in the country. The dairy farmers will be
advised to maintain a minimum herd size of 50 milking cows. Hence there is no lesson to be
learnt from Botswana‘s dairy development policies and strategy. (Reference: National Master
Plan for Arable Agriculture and Dairy Development (Government White Paper No. 1 of 2002),
Republic of Botswana).

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