Determinants of Market Participation among Dairy Producers in Southwestern Ethiopia

Abstract

Though Bench Sheko and Sheka zones have great potential for dairy production in Ethiopia, the majority of dairy producers’ could not get benefit from the sector in a sustainable way due to the low market participation problem. Hence, this study was designed to analyze determinants of market participation by dairy producers’ in Southwestern Ethiopia. Data from 160 sampled dairy producers were employed and analyzed by using the probit model. The model result shows the ownership of crossbreeds, utilization of improved livestock feeds and size of dairy cows’ ownership affect market participation decisions significantly and positively. While the number of children below six years and distance from the market is the significant factors determining the likelihood of dairy market participation negatively in southwestern Ethiopia. Therefore, demonstrations of improved livestock breed through supplying improved bulls and artificial insemination technologies, demonstration of improved livestock forages and concentrates through training, and organizing dairy marketing cooperative and dairy products collection centers are suggested to improve the market participation in the study area.

Determinants of market participation for small scale broiler farmers in Leribe District of Lesotho

“…Goitom et al (2018) added that access to poultry extension services improves farmers' knowledge of modern poultry production systems and management issues which increases their poultry production hence the participation in poultry markets. This finding of this study is similar to the study by Tarekegn and Kibreab (2017) where frequent access to extension services had a positive and significant impact on farmers' decision to participate in poultry markets.…”

“…The probable reason for this is that extension services improve farmers' knowledge of modern technology and improve their productivity, management and new production systems that ensure the constant supply of their output in the market. Tarekegn and Kibreab (2017) had the same results where they put forth that frequent access to extension services by smallholder farmers enables them to have a piece of knowledge about the improved poultry production systems and the use of improved breeds that are prolific hence increasing output level and market participation. Raidimi and Kabiti (2019) asserted that agricultural extension plays a critical role in transferring knowledge and expertise from national and global researchers to smallholders thus improving their farming performance and they can also act as a linkage between farmers and markets.…”

“…Family size had a negative influence in this study, they argued that the number of people in the household increases family consumption thus reducing the marketable surplus, and they argued that older farmers are risk-averse and they lack access to market information and productive technology as opposed to younger farmers hence the is an inverse relationship between age and market participation. Tarekegn and Kibreab (2017) evaluated determinants of poultry market participation decisions in Southern Ethiopia and among the significant variables, flock size was determined to have a positive influence on farmers' decision to participate in the market and the level of output sold in the market. These authors argued that the large poultry size on the farm ensures that family consumption does not significantly reduce the quantity to be sold in the market.…”

A binary logistic analysis on factors affecting the participation of smallholder farmers in the market of indigenous chickens (ICs)

“…To address the second one -to determine the factors influencing the smallholder farmer participation in the IC market -a Binary Logistic Regression (BLR) model was used. This followed the practice established by Tarekegn and Yosefe (2017), who used a BLR model to analyse the factors affecting smallholder farmer IC market participation in Ethiopia. The general BLR model is expressed as follows (Gujarati, 2010)…”