Determinants of Producers’ Participation Decision and Level of Participation on Milk Value Addition at Farm Level:In Case of Esssera Woreda Dawuro Zone, Southern Ethiopia

Abstract

Producersers play great role along dairy value chain in study area. Dairy sector has crucial role in improving the livelihoods of farmers through family income, employment generation, achieving food security, poverty alleviation as well as to improve nutritional status of the family in Essera Woreda. Even if there is potential of dairy production, processing, marketing and consumption, there is insufficient information about socio economic factors that hinder farmers’ participation decision and level of participation on milk value addition at farm gate. But determinants of farmers’ participation decision and level of participation decision on milk value addition were not identified and analyzed to take intervention area to improve the dairy sector. This study aimed at identifying determinants of the farmers’ participation decision and extent of participation on milk value addition. The primary data for this study were collected from 133 producers and analyzed using application of appropriate statistical tools. The result of probit (Heckman first stage) model indicated that farmers’ participation decision on milk value addition is significantly affected by gender, quantity of milk yield produced per day, family size, access to extension service, types of dairy cows’ breed and access to credit.  While farmers’ participation decision on volume of milk value addition is significantly affected by gender, family size, education level of household, distance nearest to market, farmers cooperative, types of breed owned by household, access to extension service, access to credit, quantity of milk produced per day and consumers’ quality preference on value added dairy products. Therefore, policy aiming at improving producers’ and traders’ access to improved inputs such as improved breed of dairy cows, credit, extension service.

Keywords: - Heckman, Probit, value addition, level of participation, Lambda