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

Sinbone Tefera Walkaba

doi:10.7176/jmcr/78-03

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

Highlights

Agriculture sector remains a key for the national economy of Ethiopia
The major objective of this study is to identify the determinants of cow milk commercialization in Yabello
Methods of Data Analysis Both descriptive statistics and econometric model were employed for analyzing the data collected from smallholder cow milk producers. 2.4.1 Descriptive statistical analysis Descriptive statistical analysis method such as mean, proportions, percentages, and standard deviations were used

Summary

Introduction

Agriculture sector remains a key for the national economy of Ethiopia. It accounts for 36.7% of overall GDP, 70% of foreign exchange earnings and the sector provides employment opportunity for 72.7% of the population and is a means of generating livelihood for about 83% of the rural population (ATA, 2017). The government of Ethiopia implemented agricultural commercialization clusters with the primary goal of commercialization of smallholders’ agriculture and agro-industrial development, contributing to a strategic access point for private sector engagement (Pauw, 2017). Livestock production as one component of the agriculture industry plays an important role in the economic and social development of Ethiopia at national and household level. The countries holds large potential for dairy development due to its large livestock population, the favorable climate for improved, high-yielding animal breeds, emerging market opportunity, improved policy environment for involvement of private sectors, and the relatively disease-free environment for livestock (Matawork, 2016)

Objectives

Methods

Results

Conclusion