Author
Listed:
- Naphtal, Habiyaremye
- Nadhem, Mtimet
- Emily, Ouma Awuor
- Gideon, Obare Aiko
Abstract
Although cooperatives play a critical role in reducing transaction costs and enhancing farmers’ adoption of better farming practices, little is known on the effect of dairy cooperative membership on the choice of milk marketing channels. This paper employs an endogenous switching probit model to estimate the determinants of farmers’ choice of milk marketing channels while controlling for the potential selection bias of cooperative membership. We find that cooperative membership has positive and significant effects on the choice of both MCCs and milk traders as marketing channels along with a negative effect on the choice of other buyers (direct consumers and restaurants). The varying effect of cooperative membership on choice of different marketing channels holds also for non-members had they been cooperative members. Furthermore, we find that the selling price positively affects farmers’ choice of MCCs, but the longer distance to MCCs may make farmers (including cooperative members) to choose milk traders who offer lower prices than MCCs. Since the MCCs are managed by dairy cooperatives and they are the only marketing channels that conduct basic milk quality tests while offering higher prices to farmers, we recommend policies that support easy access to MCCs and enhance dairy cooperatives’ governance. This will facilitate dairy farmers’ access to a better marketing channel while meeting an already growing consumer demand for products safety and quality in the food industry.
Suggested Citation
Naphtal, Habiyaremye & Nadhem, Mtimet & Emily, Ouma Awuor & Gideon, Obare Aiko, 2023.
"The effect of cooperative membership on farmers’ choice of milk marketing channels in Rwanda,"
2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa
365969, African Association of Agricultural Economists (AAAE).
Handle:
RePEc:ags:aaae23:365969
DOI: 10.22004/ag.econ.365969
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaae23:365969. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.