Abstract:
Milk is an important dairy farm that contributes significantly to the agricultural and
economic development of the Ethiopian economy, providing livelihood to people engaged in
its farming and marketing. However, lack of well-organized commercialization of milk
discourages the producers to participate and enhance level of production and
commercialization. The purpose of this study was to find the determinants and perception of
smallholder level of participation in milk commercialization in Misirak Badewacho Woreda,
Hadiya zone, Ethiopia. A cross-sectional research design was employed. To select 201 sample
milk producers, three-stage sampling was employed and both primary and secondary data
were used. Data wre gathered using household survey, KIIs, and FGDs. To explain the
characteristics of the respondents descriptive statistics was used. The HCI was used to assess
the levels of market participation and the ordered logit model was used to identify the factors
affecting level of milk commercialization. Opportunities and constrains for milk
commercialization were discussed using narration and quotation. The finding revealed that
73.63%, 20.40% and 5.97% of sampled farmers are subsistence, sem-commercialized and
commercialized respectively. The Ordered logit regression analysis revealed, literacy status,
total farmland, number of milking cows, access to credit, frequency of extension contact,
market distance and perception towards dairy marketing risk had a significant effect on
households' level of commercialization. There are different constraints in milk
commercialization such as shortage of clean water, high cost of improved dairy animals, lack
of dairy cooperatives and formal marketing systems, and fluctuation of weather condition.
Absence of religious prohibition days of milk consumption, Availability of WCU, Agricultural
Knowledge and Technology Transfer, Shone Center, high demand of milk consumption was
an opportunities in the study area. Therefore, attention should be given by Misirak
Badewacho Woreda office of agriculture and rural development to major constraints that
affect the level of milk marketing to advance and sustain milk commercialization.
