Abstract

The broad objective of the study was to investigate the determinants of dairy market in Mizan-Aman town, Bench-Sheko zone, Ethiopia. For the purpose of the study, 228 sample households were selected from the town using a stratified random sampling technique and the field data were collected using questionnaires. The binary linear regression model analysis was employed to identify determinants that affect the dairy market. The model result showed that dairy market was strongly and significantly affected by use of improved feed, demand for milk, frequency of getting training, access for credit, and education of the household heads. Shortage of feed and seasonality of demand, particularly in fasting time are challenges of dairy marketing in the area. Dairy producers, retailers, farms, and cooperatives were found the main milk market channel of the study area. The dairy market in the study area uses an informal marketing system which shows the underdevelopment of dairy marketing. Thus, dairy development interventions should be aimed at addressing both dairy production technological gaps and marketing problems. Further, the study shows that there is a high demand for dairy products. Therefore, dairy processing industry’s establishment, support for dairy producers and improving access to services should receive due attention in order to improve dairy market in the study area by all dairy development stakeholders

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