Determinants of Cattle Market Participation Decisions by Smallholder the Case of Wolaita Zone, SNNRP, Ethiopia

Abstract

This study was initiated to analyze determinants of cattle market participation with special emphasis to Wolaita Zone of SNNPR of Ethiopia. The main objectives of the study were, to examine the level of cattle keeper market participation and determinants of value of cattle marketed and factors influencing their participation level in the study area. Both primary and secondary data sources were used and a total of 150 cattle keeper sample households from two potential cattle producing Woredas of the Zone were surveyed. Heckman two stage models was applied to identify factors affecting the cattle keeper’ participation decision in cattle marketing and value of cattle marketed in the study area. Results from Heckman’s two stage shows among eighteen explanatory variables hypothesized to affect cattle market participation decision age of the household head, number of cattle owned, access to grazing land, access to market and lagged price as significant. Access to credit, total number of cattle owned, lagged price of cattle, access to market information and number of new born calves were also found to be significant variables influence the value of cattle marketed. The findings suggests that, effective market information service has to be established to provide accurate and timely market information to cattle keeper on current supply, demand and prices of cattle at national and regional levels. Concerned bodies government and non government organization may act on improved feed production and conservation technologies.

Keywords: Market participation decision, Value of cattle marketed and Heckman’s two stage