Determinant of Milk Market Outlet Choices:The Case of Kofele District, West Arsi Zone, Oromia, Ethiopia

doi:10.7176/jbah/10-7-06

Abstract

The study was aimed at Determinant of milk market outlet choices Kofale district, West Arsi Zone, Oromia Ethiopia with the specific objectives of identifying factors affecting milk market participation decision and the level of participation of milk. Data for this study were collected from both primary and secondary sources. Primary data were collected from 142 farmers, 59 traders, 2 cooperatives and 23 consumers. A primary data was collected from the milk value chain actors using semi-structured questionnaires’, key informants, and focus group discussion guide checklist. to analyze the determinants of the producers market participation decision and level of participation double hurdle model was applied. Multivariate probit model used to identify the determinants of market outlets choice decisions. The multivariate probit model results indicated that sex, dairy farming experience, dairy cooperative membership, number of milking cow owned frequency of extension contact, off/non-farm income and access to transportation facility of farm households were significantly influenced milk producers’ choice of market outlets. Keywords: Milk, Market outlet, Multivariate probit DOI: 10.7176/JBAH/10-7-06 Publication date: April 30 th 2020

Highlights

Ethiopia holds large potential for dairy development Ethiopian highlands possess a high potential for with diverse topographic and climatic conditions favorable for dairying (Gezu and Zelalem, 2018)
Econometric model was used to analyze determinant of smallholder milk producer households milk market outlet choice using multivariate probit model
The sampled households were asked if they choose different milk market outlets to maximize the profit from their outlet choice decision

Summary

Introduction

Ethiopia holds large potential for dairy development Ethiopian highlands possess a high potential for with diverse topographic and climatic conditions favorable for dairying (Gezu and Zelalem, 2018). The traditional smallholder milk production system produces 97 percent of the total national milk production and 75 percent of the commercial milk production. This sector is largely dependent on indigenous breeds of low-productivity native zebu cattle, which produce about 400-680 kg of milk /cow per lactation period (Zelalem et al, 2011). As dairying play a significant role in the lives of the urban and peri-urban poor households, promotion of the dairy sector in Ethiopia can, contribute significantly to poverty alleviation as well as, availability of food and income generation (Yitaye et al, 2007). Usually by women, who use the regular cash income to buy household necessities or to save for festival times (Mugerewa et al, 2009)

Objectives

Methods

Results