Determinants of Cow Milk Commercialization in Yabello District, Borana Zone of Oromia National Regional State, Ethiopia

Abstract

Milk is an important dairy product socially and economically in pastoral area of Ethiopia generally and Yabello district particularly. It is a source of food and cash income for the majority of milk producers. This study was aimed at analyzing cow milk market participation and determinants of cow milk commercialization. Data were collected from154 randomly selected producers in the district through a structured questionnaire. Both descriptive statistics and econometric models were used to analyze the data. The double hurdle model was used for analyzing cow milk market participation (first hurdle) and determinants of cow milk commercialization (the second hurdle). In first hurdle, the result of Probit Regression Model revealed that cow owned (TLU), cooperatives membership, production experience, market place, availability of labor force (adult equivalent) and age of the household head played a significant role in cow milk market participation. In the second hurdle, the result of Truncated Regression Model revealed that cows owned (TLU), milk production experience (year), market distance and age of the household head were found to significantly influence the cow milk commercialization in the study areas. Therefore, focuses are needed to support households for dairy commercialization in the study area. Especially, focus should be given to the establishment of a market place for milk and dairy product, supporting cooperative, selection of local breed, which determine the cow milk commercialization in the study area.

Keywords: dairy commercialization, Yabello, Smallholder, Market Participation, Tobit, probit

DOI: 10.7176/JMCR/78-03

Publication date: April 30^th 2021