PERCEPTION AND DETERMINANTS OF SMALLHOLDERS’ LEVEL OF MILK COMMERCIALIZATION; IN MISIRAK BADAWACHO WOREDA, HADIYA ZONE, CENTRAL REGIONAL STATE, ETHIOPIA

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.