AN ANALYSIS OF MILK MARKETING IN YABELO WOREDA OF BORENA ZONE.

Abstract

The study was conducted in Ysabel Woreda southern Ethiopia with the objectives of analyzing milk marketing. 208 respondents randomly selected from 3 potential milk producer kebeles were included in the final analysis. Both qualitative and quantitative data were collected from primary sources using survey questionnaire. Secondary data were collected from journals, reports and documents used in the study area. Data analysis was performed both by descriptive and econometric analysis methods. Generally, milk market in the study area seemed to be inefficient and underdeveloped. The Heckman two stage estimation model results of the first stage/probit regression model showed that decision of participation of households in milk marketing were affected significantly by age of the household, experience and land size. In addition, the second stage estimation result revealed that the level of participation of households in milk market supply was also affected significantly by, extension access, volume of production, education, experience, dairy income and land size. Thus, it is suggested that strengthening of participation of smallholder milk producers in milk market supply via capacity improvement and enhanced access of appropriate technical support service provision. The study further suggested that milk processing industries formation, milk producers and trader cooperatives, and improving access to services should receive due attention in order to improve milk production in general and milk marketing participation in particular in the study area