Marketing of Dairy Products in Selected Districts of Wolaita zone, Southern Ethiopia

Abstract

The study was conducted to assess dairy products marketing from January to May 2015 in Wolaita Zone, Southern Ethiopia. To undertaken the study, multistage sampling method was used and data was collected from both primary and secondary sources. The collected data was analyzed statistically using SPSS (version 17) for windows by using descriptive statistics and general liner model. The study showed that the respondents had multiple reasons for the cause of increasing demand of milk and milk products, of which the combination of due to dry season, holiday and festivals and fasting (52.3%); dry season and non fasting (23.9%) and only dry season (12.8%) were the major one. Most of the interviewed respondents sold their dairy products through formal marketing (85.7%) while the rests did sell through both formal and informal alternatively.  About 41.9, 41.0, 14.3 and 2.9% of the respondents sold to their dairy products to consumers directly; directly to consumers and retailers, only to retailers and cooperatives, respectively. As indicated by respondents, cooperative marketing was not well developed in the study area. The study was also reported that the respondents had never sold fresh (whole milk), butter milk, fermented milk (yogurt/ergo); whey and ghee but they only sold both butter and cheese. Out of 150 interviewed farmers 53.29, 48.68, 39.47, 38.82 and 44.74% sold butter in dry season, wet season, fasting period, no fasting period, and holidays and festivals period, respectively while 23.68, 20.39, 18.42, 20.39 and 20.39% of the respondents sold cheese respectively in dry season, wet season, fasting period, no fasting period, and holidays and festivals period.

The results of the study indicated that the price of the butter was sold 134.79±1.6 Birr/kg in average. The price of butter was significantly (P<0.05) vary across agro-ecology (location) in all parameters (during wet season, dry season, fasting, no fasting and holidays and festivals periods); the farmers of lowland areas sold butter in more expensive price than midland.  As indicated in the study, the butter marketing price was also significantly different due to  effect of selling time in the overall result as well as in each agro-ecology (low land and mid land ). The price was significantly lower in wet season in both low land and overall results while in mid land, the price was equally significantly lower in both, wet season and fast period. On the other hand, the highest price was reported in holidays and festivals periods, dry season and none fasting periods in both lowland and overall result; but in mid land area, only in holidays and festivals periods was reported highest price. However, the marketing price of cheese was insignificantly different across agro-ecology (lowland and midland). But it was significantly differ cross influencing of selling time (during wet season, dry season, fasting, no fasting and holidays and festivals periods) in both agro –ecology midland and low land and in overall result at 5% level of significant. It was concluded that in the study area, of the dairy products only both butter and cheese were sold and the sale price of milk and milk products was not consistent across years it was varying due to the effect of season, holiday and festivals, fasting and no fasting condition