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Market Participation Behaviour of Smallholder Dairy Farmers in Uttarakhand: A Disaggregated Analysis

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  • Bardhan, Dwaipayan
  • Sharma, M.L.
  • Saxena, Raka

Abstract

The study has analyzed the factors that determine dairy farmers’ choice of marketing channel and to what degree their market choice influence the level of commercialization or market participation in Uttarakhand. The study has used multinomial logit model to ascertain major factors influencing producers’ choice of marketing channels, Chow’s seminal test to examine differences between data from diverse regions (plains and hills) and a multivariate regression model to assess the level of market participation. The study has revealed that given the right institutional incentives and market infrastructure, marginal and small landholders are capable of scaling-up milk production and hence commercialize their dairy enterprises. The results of multinomial logit analysis have indicated that increase in the scale of milk production would lead a shift away from cooperatives to market as point of first sale. Milk production and extension contact have emerged as the two most important policy variables favourably influencing intensity of market participation. Distance to market has negatively influenced likelihood of producers’ market participation, irrespective of hills or plains. Once the households decide to sell, this variable has been found not to significantly impact their level of participation in the plains. However, distance to market has been observed to negatively impact intensity of market participation in the hills.

Suggested Citation

  • Bardhan, Dwaipayan & Sharma, M.L. & Saxena, Raka, 2012. "Market Participation Behaviour of Smallholder Dairy Farmers in Uttarakhand: A Disaggregated Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(2).
    • Handle: RePEc:ags:aerrae:137367
    DOI: 10.22004/ag.econ.137367
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    Cited by:

    1. Apind, Benard Owino, 2015. "Determinants Of Smallholder Farmers Market Participation; A Case Study Of Rice Marketing In Ahero Irrigation Scheme," Research Theses 265572, Collaborative Masters Program in Agricultural and Applied Economics.
    2. KETEMA, Mengistu & AMAN, Mohammed & SEIFU, Eyassu & GETACHEW, Tarekegn & HAWAZ, Estifanos & HAILU, Yonas, 2016. "The Dairy Value Chain And Factors Affecting Choice Of Milk Channels In Harar And Dire Dawa Areas, Eastern Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(2), pages 1-9, October.
    3. KETEMA, Mengistu & KEBEDE, Degefu & DECHASSA, Nigussie & HUNDESSA, Feyisa, 2016. "Determinants Of Adoption Of Potato Production Technology Package By Smallholder Farmers: Evidences From Eastern Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(2), pages 1-8, November.
    4. Ndoro, Jorine & Mudhara, Maxwell & Chimonyo, Michael & Hitayezu, Patrick, 2015. "Farmers' Choice of Cattle Marketing Channels in Rural South Africa: A Transaction Cost Economics Perspective," 2015 Conference, August 9-14, 2015, Milan, Italy 212526, International Association of Agricultural Economists.
    5. Mtimet, Nadhem & Pica-Ciamarra, Ugo, 2016. "Dairy farmers’ access to market in Uganda: Observing the unobservable," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249282, African Association of Agricultural Economists (AAAE).
    6. Ravichandran, Thanammal & Teufel, Nils & Capezzone, Filippo & Birner, Regina & Duncan, Alan J., 2020. "Stimulating smallholder dairy market and livestock feed improvements through local innovation platforms in the Himalayan foothills of India," Food Policy, Elsevier, vol. 95(C).

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