DETERMINANTS OF SMALLHOLDER FARMERS PARTICIPATION DECISION AND VOLUME OF MILK SUPPLY IN GIRAR JARSO DISTRICT, NORTH SHEWA ZONE, OROMIA REGION,ETHIOPIA

Abstract

Ethiopia has huge potential and comparative advantage in livestock production, dairy farming is believed to be one of the potential sectors to curb food insecurity and improve the livelihood of smallholder farmers and the society at large. However, this sector is characterized by small scale and traditional production systems, poor marketing linkages, and product handling. This study was instigated to assess the determinants of smallholder farmer’s participation decisions and the volume of milk supply in Girar Jarso District. Primary data were collected using semi structured questionnaires from 150 sampled smallholder dairy producers from the district. The data was further augmented by focus group discussion. Double hurdle estimation technique was used to determine dairy producer market participation decision and extent of participation. The result revealed that family size, had a positive and strong significant effect on the households’ participation decision by a factor of 0.572 and the distance to a milk collection center and participation in non-dairy income has negative and strong significant effects (-0.538 and -0.737) respectively, in the first hurdle of model estimation over the study area. Farm size had a positive and strong significant effect on the households’ participation decision by a factor of 0.751. Cooperative membership had a positive and strong significant effect on milk market participation by factors of (2.352 and 6.113) in the first and second hurdles respectively. Therefore, intervention to improve size of production and access to high milk collection centers will enhance farmers’ participation in dairy production and marketing.