Abstract:
The study was conducted in Yabelo 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.
