Determinants of Dairy Farmers’ Market Participation in the Major Dairy Producing Towns of Jimma Zone of Southwest Ethiopia

Abstract

The study was initiated with the objectives of analyzing factors affecting dairy farmers’ market participation in major milk producing towns of southwest Ethiopia. Milk and butter were the two most important dairy products marketed in the areas. Data came from 238 dairy producing households, 17 traders, and 50 consumers. Heckman two stages procedures were used to analyze factors affecting milk market participation and level of participation in the study area. The first step of the Heckman two stages procedures results showed that dairy household milk market entry decision was strongly and significantly affected by  family size,  number of cross breed and local breed  milking cows owned, access to credit and distance from milk market center. In addition, the second stage estimation result revealed that marketable milk volume was found to be strongly and significantly affected by the number of cross breed and local breed milking cows owned, family size, and monthly non-dairy income source of sampled dairy household.  69.7% were market participants as they were found to sell raw milk at the time of the survey, while the rest (30.3%) did not sell at the time of survey.

Keywords: Milk, market participation, Heckman model, southwest Ethiopia