Market Participation Behaviour of Smallholder Dairy Farmers in Uttarakhand: A Disaggregated Analysis
AbstractThe study has analyzed the factors that determine dairy farmersâ€™ choice of marketing channel and to what degree their market choice influence the level of commercialization or market participation in Uttarakhand. The study has used multinomial logit model to ascertain major factors influencing producersâ€™ choice of marketing channels, Chowâ€™s seminal test to examine differences between data from diverse regions (plains and hills) and a multivariate regression model to assess the level of market participation. The study has revealed that given the right institutional incentives and market infrastructure, marginal and small landholders are capable of scaling-up milk production and hence commercialize their dairy enterprises. The results of multinomial logit analysis have indicated that increase in the scale of milk production would lead a shift away from cooperatives to market as point of first sale. Milk production and extension contact have emerged as the two most important policy variables favourably influencing intensity of market participation. Distance to market has negatively influenced likelihood of producersâ€™ market participation, irrespective of hills or plains. Once the households decide to sell, this variable has been found not to significantly impact their level of participation in the plains. However, distance to market has been observed to negatively impact intensity of market participation in the hills.
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Bibliographic InfoArticle provided by Agricultural Economics Research Association (India) in its journal Agricultural Economics Research Review.
Volume (Year): 25 (2012)
Issue (Month): 2 ()
Milk market; multinomial logit model; Chowâ€™s seminal test; Agricultural and Food Policy; Q12; Q13; Q18;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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- Randela, Rendani & Alemu, Zerihun Gudeta & Groenewald, Jan A., 2008. "Factors enhancing market participation by small-scale cotton farmers," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(4), December.
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