Determinants of Households’ Market Participation around Community Milk Cooling Plants, Western Kenya

Abstract

Market participation in sub-Saharan Africa has been assessed mainly based on already producing households by looking at whether they sold or not, and if they sold, what quantities. The objective of this study was to determine the socio economic factors that influenced households' decisions on market participation in terms of dairy cow ownership and quantity of milk sold while taking into consideration the non-producers using Heckman two stage model. The model allowed for not only determination of the effects of household characteristics on volume of milk surplus sold by already producing households but also drew inferences on the effect of household characteristics on probabilities of dairy cow ownership whileadding new information to literature by generating the truncation effect. A multistage sampling technique was used to select 544 producer and non-producer households and primary data collected using a semi structured interview schedule through personal interviews. From the results, probit marginal effects for dairy cow ownership were associated positively and statistically significant with household size, the level of education and land size owned by the households. The Heckman selection estimates revealed that increased number of dairy cows per household positively influenced the volumes of milk sold, while household size influenced negatively the quantity of milk sold. In conclusion, milk sales conditional on dairy cow ownership suffered from negative selectivity bias whereby a household with sample average characteristics who selected into dairy cow ownership secured 40% lower quantity of milk sold than would a household drawn at random.

Determinants of Raw Milk Supply and Value Addition Participation in Mecha Woreda, Amhara National Regional State, Western Ethiopia

“…A study conducted by Benyam et al (2016) indicated that family size affected milk market participation and level of participation positively. Emukule et al (2018) identified household size was associated with the milk sell likelihood positively. In contrast, family size increases home milk consumption which affects the milk market participation.…”

“…Bardhan et al(2012); and Chamboko et al (2017) identified that age affected the probability of participating in milk marketing negatively and significantly. In contrast, Emukule et al(2018) indicated that as age increases, there would be better milk production and marketing experience which in-turn increases the probability of milk market participation. Study by Chamboko et al (2017) showed that age affected the volume of milk sold negatively whereas Emukule et al (2018) inferred that age affected milk market participation intensity positively.…”

“…In contrast, Emukule et al(2018) indicated that as age increases, there would be better milk production and marketing experience which in-turn increases the probability of milk market participation. Study by Chamboko et al (2017) showed that age affected the volume of milk sold negatively whereas Emukule et al (2018) inferred that age affected milk market participation intensity positively. Therefore, the effect of household head age on milk market participation decision and intensity participation was difficult to hypothesize.…”

“…A study conducted by Chamboko et al (2017) indicated that land size affected the level of milk sell positively. Emukule et al (2018) identified land size affected the likelihood of milk sell positively while it affected the volume of milk sold negatively. Studies conducted by Berhanu et al ( 2104) and D. Bardhan et al(2012) indicated that land holding size of the household affected the probability of milk market participation and the volume of supply negatively.…”

“…Education can capacitate the performance of farmers in farming ,information sharing and technology implementation and then can improve the decision making quality (Fakoya et al, 2007). Studies by Chamboko et al(2017) and Emukule et al (2018) identified that education level affected the likelihood of milk sell positively. This variable was hypothesized to affect milk market participation decision and intensity of participation positively.…”