African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6848

Article in Press

Determinants of smallholder farmers milk commercialization in Kuyu district, Oromia Reginal State, Ethiopia

Getachew Tulu Garedo

  •  Received: 26 December 2023
  •  Accepted: 22 February 2024
Commercialization of smallholder agriculture is an indispensable pathway to increase the income of rural peoples. this study aimed to analyzing determinants of smallholders’ milk commercialization in Kuyu district with specific objectives of identifying the factors affecting smallholder farmers’ milk market participation decision, and to identify the determinants of commercialization level among smallholder milk market participant farmers’. Data were collected from 168 milk producers by using both primary and secondary sources in 2020/2021. Double hurdle model was used to analyze. The results from 1st stage (probit model) indicated that the probability of smallholder milk market participation decision was positively and significantly affected by education level of household heads, dairy farming experience, number of milking cows owned and access to market information, whereas the distance to the nearest market and number of children under age six were negatively affect. and also the results of 2nd stage (truncation model) indicated that education level of household heads, dairy farming experience, breed type of milking cow, market information, and contract market agreement were positively and significantly affected the level of milk commercialization whereas family size, and distance to the nearest market were negatively and significantly effects. Therefore in the study area government should give emphasis on the rural education system, family planning program, and construction of different infrastructure and establish, collective organizations across rural areas like dairy cooperatives are assumed to play an important role in faster delivery of farm milk produces, and policy makers should provide market price information to smallholders.

Keywords: Double hurdle, Market participation, Milk commercialization, Smallholder, Ethiopia.