Abstract:
Cooperatives contribute to the entire economic growth of Ethiopia. But, cooperative
members’ participation in the activities of cooperatives is often challenging, especially in
dairy cooperatives. The aim of this study was to investigate the determinants of farmers’
participation on dairy cooperatives. The multi-stage sampling technique was applied to
select study area and respondents. Data were gathered for the study using a descriptive
design from 341 respondents, 120 dairy cooperative members, and 221 non-members. Binary
logistic regression and Tobit models were utilized to identify factors affecting household’s
level of membership and member’s intensity of participation in dairy cooperatives,
respectively. The results of the binary logistic regression model shows that the level of
membership of dairy cooperative was positively and significantly affected by livestock
holding, participation of training on cooperatives, credit use, and perception on
cooperatives, whereas it was negatively and significantly affected by sex of household head,
and distance to the cooperative office. The results of the tobit regression also reveals that
intensity of participation in cooperatives was positively and significantly affected by livestock
ownership, participation of training on cooperatives, whereas it was negatively and
significantly affected by sex, land holding, and distance to cooperative office. As a
conclusion, the provision of training attracts more farmers to the cooperative; the
availability of financial credit helps farmers to purchase inputs to raise their milk production
and productivity, which results in increasing the average daily milk production; and the
distance of cooperative service center attracts members to participate more simply as
traveling takes less time, effort, and money. As recommendation, local government and
concerned NGOs should give attention to enhance farmers’ participation on dairy
cooperatives, there is need to facilitate provision of training, credit, and developing
cooperative service center near to the farmers’ residence
