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Determinants of Smallholder Farmer Decision to Participate In Milk And Butter Market in Ada’a Berga District, West Shewa Zone, Ethiopia

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  • Gemechu Ordofa (a), Lemma Zemedu (b), Mohamed Triki (c)

    ((a) a Haramaya University, Ethiopia; (b) Ethiopian Institute of Agricultural Research, Ethiopia; (c) Bahir Dar University, Ethiopia)

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.

Suggested Citation

  • Gemechu Ordofa (a), Lemma Zemedu (b), Mohamed Triki (c), 2021. "Determinants of Smallholder Farmer Decision to Participate In Milk And Butter Market in Ada’a Berga District, West Shewa Zone, Ethiopia," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 46(2), pages 209-227, June.
    • Handle: RePEc:jed:journl:v:46:y:2021:i:2:p:209-227
    DOI: 10.35866/caujed.2021.46.2.007
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    References listed on IDEAS

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    More about this item

    Keywords

    Market Participation; Butter; Milk; Heckman; Ethiopia.;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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