Farming for the future Ethiopians have used milk as part of their diet for centuries. Most of the milk is produced by rural small-scale farmers. Although Ethiopia has the largest livestock population in Africa, the total milk production is very low in comparison with other African countries.This is caused by the low average yield of 166 litres per cow per year. The constraints the dairy sector is dealing with are poor dairy genetics, animal diseases, availability of feed and fragile markets.This project will introduce good quality fodder crops for dairy farmers and will show improved animal husbandry practices at farm level. Applicant Flier Beheer B.V. from the Netherlands will start a strategic alliance between Alfa Farms and the dairy processing factory Holland Dairy Plc in Debre Zeit. Alfa Farms will produce fodder crops for cattle like Lucerne, maize, triticale, grass and fodder beets and sell the Total Mixed Ration feeding to at least 500 small-scale farmers in the area around Debre Zeit, enabling a 50% reduction of feed costs per litre milk produced. A demo farm will be started in Debre Zeit with the objective to show and train farmers how to improve animal husbandry practices, leading to higher milk production. As such, the project will improve the dairy chain around Debre Zeit area.Corporate Social Responsibility (CSR)The applicant started his activities in Ethiopia 10 years ago with a drive of poverty reduction. However, as a real entrepreneur he believes this can only be achieved on a sustainable way if you do that by running a successful company.Alfa Farms is a partner in the joined efforts in Debre Zeit of several Dutch business people. The profit of the company will be reinvested to continue the expansion of forage and food production. The company will implement integrated crop management principles, work according to a Human Resource Management handbook including a code of conduct.Impact•	Employment and working conditionsIn total 62 people will be employed and 100-200 people will have seasonal jobs. Out of the 62, 12 will be on medium and high management level.Two years after PSI this will be 25 managerial level, 80 people at operational level and 200 to 600 seasonal workers. The latter depending on the type of crop. The basic salaries will be 12% above locally paid wages for comparable jobs. The HRM and salary policies include employee discount on farm products, extra hours are paid, farm meals, free education and training, personal development planning including management trainings, free first aid and a healthcare prevention plan, free birth assistance for women and paid maternity leave, voluntary HIV prevention programme and testing, collective transport, child care on the farm, free English lessons, safety standards.•	Innovation/Transfer of knowledgeNew skills and knowledge level acquired by local employees will be measured by recognised certificates. At the start of the project qualifications of each employee will be documented. As a result of the education and trainings received from Alfa Farms, the employees' level of acquired knowledge will be tested by the Hope University.However, the knowledge on forage production will be new for Ethiopia. At least 500 farmers will be trained in animal husbandry practices.•	Chain effectsThe sales of forage to the animals will result in higher milk output per cow, as well as in lower feed costs per litre milk produced.Therefore, the farm income of at least 500 small-scale farmers will increase. Secondly, the dairy factories in that region will be able to source more and better quality milk closer to the factory, enabling them not only to expand the production, but also to change to high-value dairy products. With a substantial increase of milk production in Ethiopia, there is less need for import of milk powder, saving foreign currency. In future, by the export of Lucerne hay foreign currency will be generated.•	EnvironmentAn Environmental Impact Assessment will be executed during the first result. The forage will be produced according to Integrated Crop Management principles. It is expected that the impact on the environment will be neutral.•	Position of women6 out of 12 management positions will be held by women; however the positions will be open for men and women. The seasonal workers will mainly be women. In total 150 women will be involved. On-farm child care will be started. Alfa Farms will cooperate with Hidi Clinic, offering emergency help and delivery assistance to women. Alfa farms will support women by organising empowering discussions. Set up of a mixed farm that produces annually a maximum of 9,925 tons of animal feed products and 430,000 litres milk in Debre Zeit Ethiopia.