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Dairy Producers Market Participation Decision and Volume of Milk Supply in Mekelle City, Ethiopia

Author

Listed:
  • Hailay Girmay
  • Belaineh Legesse
  • Abebe Ejigu
  • Seare Tajebe

Abstract

This study was intended to examine dairy producers market participation decision and volume of milk supply. Cross-sectional data was obtained from 220 sample households and analyzed using Heckman selection model. Heckman first-stage model result shows that age of household head, access to market information, access to extension service, contract agreement and accessibility of animal feed was positively determined the dairy producers milk sale decision. Heckman second-stage model result shows that access to market information, market price, accessibility of animal feed and family size was positively determined the volume of milk supply whereas religion determined negatively. This implies that dairy producers capacity building, improving information delivery system and strengthen extension service are an optional solutions to improve production and market supply decision.

Suggested Citation

  • Hailay Girmay & Belaineh Legesse & Abebe Ejigu & Seare Tajebe, 2021. "Dairy Producers Market Participation Decision and Volume of Milk Supply in Mekelle City, Ethiopia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 9(3), pages 1-21, December.
    • Handle: RePEc:ibn:sarjnl:v:9:y:2021:i:3:p:21
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    References listed on IDEAS

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    1. Md. Shafiul Azam & Katsushi S. Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation – the Case of Cambodia," Discussion Paper Series DP2012-09, Research Institute for Economics & Business Administration, Kobe University.
    2. Omiti, John M. & Otieno, David Jakinda & Nyanamba, Timothy O. & McCullough, Ellen B., 2009. "Factors influencing the intensity of market participation by smallholder farmers: A case study of rural and peri-urban areas of Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 3(1), pages 1-26, March.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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