Smallholder dairy producers’ participation in dairy marketing in Southern Omo Zone, Ethiopia

Abstract

Dairy market development has been hampered by multi-faceted problems such as low adoption of improved technologies, absence of clear policy support for the sector, marketing problems, and other institutional factors. This study was aimed at analysing determinants of smallholder dairy producers’ participation decisions in dairy marketing and the intensity of participation in dairy marketing. It is also aimed at identifying the existing major constraints on dairy marketing in the study area. A total of 150 random sample households were chosen, and data were analysed using descriptive and econometric methods. A Heckman two-step selection model was used to analyse the determinants of dairy market participation decisions and levels of participation. The results indicated lower participation in dairy marketing (38.67%), despite the huge potential of livestock production in the area. Dairy producers’ market participation decisions were found to be significantly affected by the education status of the household head, access to market information, distance to the nearest market, number of lactating cows, and membership in a cooperative group, while the age of the household head, education status, land holding, and number of lactating cows significantly affected the dairy product sale volume. The findings imply that market information delivery systems, market infrastructures, and vocational education should be strengthened by the government and development partners.