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Dairy Producers’ Market Participation Decision and Volume of Milk Supply in Mekelle City, Ethiopia

Author

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  • Girmay, Hailay
  • Legesse, Belaineh
  • Ejigu, Abebe
  • Tajebe, Seare

Abstract

This study was intended to examine dairy producers’ market participation decision and volume of milk supply. Cross-sectional data was obtained from 220 sample households and analyzed using Heckman selection model. Heckman first-stage model result shows that age of household head, access to market information, access to extension service, contract agreement and accessibility of animal feed was positively determined dairy producers’ milk sale decision. Heckman second-stage model result shows that access to market information, market price, accessibility of animal feed and family size was positively determined volume of milk supply, whereas religion determined negatively. This implies that dairy producers capacity building, improving information delivery system and strengthen extension service are an optional solution to improve milk production and market supply decision.

Suggested Citation

  • Girmay, Hailay & Legesse, Belaineh & Ejigu, Abebe & Tajebe, Seare, 2020. "Dairy Producers’ Market Participation Decision and Volume of Milk Supply in Mekelle City, Ethiopia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 9(3).
    • Handle: RePEc:ags:ccsesa:309778
    DOI: 10.22004/ag.econ.309778
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    1. Md. Shafiul Azam & Katsushi S. Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation – the Case of Cambodia," Discussion Paper Series DP2012-09, Research Institute for Economics & Business Administration, Kobe University.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Omiti, John M. & Otieno, David Jakinda & Nyanamba, Timothy O. & McCullough, Ellen B., 2009. "Factors influencing the intensity of market participation by smallholder farmers: A case study of rural and peri-urban areas of Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 3(01), pages 1-26, March.
    4. 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), pages 1-18, December.
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    Keywords

    Livestock Production/Industries;

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