Open Access
American Research Journal of Business and Management
ISSN (Online): 2379-1047
DOI: 10.46568/arjbm
Analyzing Determinants of Milk Market Participation and Volume of Milk Supply in Urban and Peri – Urban Areas of Ambo and Dendi Districts, West Shewa Zone of Oromia Regional State, Ethiopia
1*Madda Walabu University, College of Agriculture and Natural Resources, Department of Agricultural Economics, Robe Ethiopia.
2Ambo University, college of Agriculture and Veterinary Science, Departmet of Animal Scienc, Ambo- Ethiopia.
Kemer Tura, Lemma Fita, “Analyzing Determinants of Milk Market Participation and Volume of Milk Supply
in Urban and Peri – Urban Areas of Ambo and Dendi Districts, West Shewa Zone of Oromia Regional State, Ethiopia”,
American Research Journal of Business and Management, Vol 10, no. 1, 2024, pp. 75-86
Abstract
This study was undertaken with the objective of analyzing factors affecting milk market participation and volume of milk
supply in urban and peri – urban areas of Ambo and Dendi Districts, West Shewa Zone. The study made use of primary
data collected from 146 smallholder milk producers who selected randomly out of 2235 total households.The data
were collected through application of individual interview schedules.The analysis was made by using both descriptive
statistics and Heckman two-stage econometric model.From all dairy producing sample households, about three fourth
of the households (74.7%) were market participants during the survey period.The first step of the Heckman two stages
procedures results showed that dairy household milk market participation was significantly and positively affected
by age of the household head, number of cross breed milking cows, access to extension services, access to milk market
information and access to credit services while it was affected negatively and significantly by sex of the household head
and distance to the nearest market. In addition, the second stage heckman estimation result point out thatnumber of
cross breed milking cows, access to extension service, access to information and financial income from non -dairy sources
are an important factors affecting sale volume of milk significantly and positively while Landholding size was found to
affect volume of milk supply negatively.The finding implies that policy aiming at improving extension access through
training farmers, Awareness creation on credit service terms and conditions,price information dispersion through public
sector such as extension agentshould be facilitated in order to enhance producer’s milk market participation and level of
participation. Moreover, integration of cross breed cows to the smallholder’s dairy sector through improving their access
to improved cattle breeds is an important issue to increase milk yield per day per household which in turn increase milk
market participation and sale volume of milk.
