Dairy Producers Market Participation Decision and Volume of Milk Supply in Mekelle City, Ethiopia

Hailay Girmay,Seare Tajebe,Abebe Ejigu,Belaineh Legesse

doi:10.5539/sar.v9n3p21

Abstract

This study was intended to examine dairy producers market participation decision and volume of milk supply. Cross-sectional data was obtained from 220 sample households and analyzed using Heckman selection model. Heckman first-stage model result shows that age of household head, access to market information, access to extension service, contract agreement and accessibility of animal feed was positively determined the dairy producers milk sale decision. Heckman second-stage model result shows that access to market information, market price, accessibility of animal feed and family size was positively determined the volume of milk supply whereas religion determined negatively. This implies that dairy producers capacity building, improving information delivery system and strengthen extension service are an optional solutions to improve production and market supply decision.

Highlights

Considerable potential for smallholder income and employment opportunity from dairy sector in Ethiopia was expected to contribute poverty alleviation and nutrition
As the age of household head increases by one year, the probability of market participation decision was increased by 0.1%
As producers access to market information, the probability of market participation decision would be increased by 25%

Summary

Introduction

Considerable potential for smallholder income and employment opportunity from dairy sector in Ethiopia was expected to contribute poverty alleviation and nutrition. Absence of sustainable dairy development causes shortage of milk supply (FAO, 2011). Market participation is an essential strategy for poverty reduction and ensuring food security of peoples living in developing countries (Berhanuet al., 2007). Lack of many households market participation is the major constraint to combating poverty (Best et al, 2005). The efficient integrated and responsive dynamism in marketing system is very important for effective resources utilization, which in turn households improve production and market participation (FAO, 2003). No research has been done concerning dairy producers market participation decision and volume of milk supply in Mekelle city. This study attempts to fill the research gap and add knowledge to dairy producers and related stockholders

Methods

Findings

Discussion

Conclusion