Factors Associated with Supply of Butter and Optimal Value Chain of Milk Product in Kedida Gemela District of Kembata Tambaro Zone, Southern Ethiopia

Abstract

Butter product is one of most important Dairy products in the livestock production and referred as livelihood base that ignites economy of the farming communities in Kedidagamela districts and Kembata Tembaro zones of Southern Ethiopia. But the level of value addition in butter and its determinants and optimal value addition channel was not identified and updated. Hence, the study done based on targets of gathering update information to examine factors affecting butter supply in the value chain and indicate optimal value addition channel for the districts. The study done at Kedidagamela districts of Kembata Tembaro zone and used cross sectional data from household survey of 101 households. The study applied multiple linear regression model and descriptive statistics for analysis. The study finding indicated that level of butter supply defined as function of agricultural and off-farm income earned, age of respondents, area of improved forage at farm land, number of cow owned and feeding and medication costs of dairy cow. The study identified the optimal value chain for producer that provokes the household to adopt value addition practise in making different products rather than selling fresh milks for consumers. The study points out that butter supply to market can be enhanced through promotion of improved forage cultivation, enabling producers to earn income from agricultural and none agricultural activities, reducing feeding and medication cost of cow rearing, owing more cows and obtain experience in production. The level of value added in dairy products and income of producers can be optimized in adopting value addition practices of daily products that experienced by more than two third households in the districts.