Determinants of Smallholder Farmer Decision to Participate in Milk and Butter Market: The Case of Ada’a Berga District, West Shewa Zone, Oromia National Regional State, Ethiopia
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The main objective of this study was to examine smallholder farmers’ milk and butter market participation decision and level of participation in the Ada’a Berga district. A multi-stage sampling technique employed to select 123 respondents. Heckman two stage model was used. The result of the Heckamn first stage show that breed type, income from dairy, membership of dairy cooperative and milking cows have a positive and statistically significant effect on milk market participation. While, the distance from market, number milking cows, market information and non-dairy income has a positive and statistically significant effect on the farmers’ decision to participate in the butter market. The second stage Heckman model result shows education, number milking cows, credit and membership of dairy cooperative have a positive and statistically significant effect on the level of milk market participation. Also, factors such as number milking cows, access to credit, dairy income and volume of milk produced have a positive and statistically significant effect on level of butter market participation. Therefore, improving breeding, education, market information, strengthening cooperative and extension and credit service can increase farmers' participation in output market.
Abstract
The main objective of this study was to examine smallholder farmers’ milk and butter market participation decision and level of participation in the Ada’a Berga district. A multi-stage sampling technique employed to select 123 respondents. Heckman two stage model was used. The result of the Heckamn first stage show that breed type, income from dairy, membership of dairy cooperative and milking cows have a positive and statistically significant effect on milk market participation. While, the distance from market, number milking cows, market information and non-dairy income has a positive and statistically significant effect on the farmers’ decision to participate in the butter market. The second stage Heckman model result shows education, number milking cows, credit and membership of dairy cooperative have a positive and statistically significant effect on the level of milk market participation. Also, factors such as number milking cows, access to credit, dairy income and volume of milk produced have a positive and statistically significant effect on level of butter market participation. Therefore, improving breeding, education, market information, strengthening cooperative and extension and credit service can increase farmers' participation in output market.
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