Dairy Value Chain Analysis in Meta District, Eastern Ethiopia

Dairy Value Chain Analysis in Meta District, Eastern Ethiopia

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Title: Dairy Value Chain Analysis in Meta District, Eastern Ethiopia
Author: Sosina, Bezie; D/r Mengistu, Ketema
Abstract: This study was aimed at analyzing dairy value chain in Meta district of East Hararghe Zone with specific objectives of identifying dairy value chain map, examining performance of actors in the chain and analyzing the determinants of milk market participation decision and level of milk marketed in the study area. The data were obtained from both primary and secondary sources. The primary data for this study were collected by three stage sampling technique from 55 kebeles 11 kebeles were selected purposively and out of those kebele 4 of them were selected randomly and 121 producers were determined by Yemane formula from list of for dairy producer kebeles. Mean while, 46 traders were selected from different markets by counting method and 28 consumers were interviewed from Drie Dawa, Harar and Meta towns. Heckman two stage models were applied to identify determinants of milk market participation and volume of milk supply to the market. The cost margin indicates that highest share of margin profit obtained by cafes by 6.57 Birr/litre and the lowest profit goes to retailers of 1.85 Birr/litre next to producers 1.86 Birr/litre. Results of Heckman two stage selection model shows among those 14 explanatory variables hypothesized to affect milk market participation decision, distance to the nearest market, nonfarm income, crop income, land size and age of household were found negatively and significantly affecting participation decision. Supplementary feed, hybrid dairy cows, livestock size (TLU) were significantly and positively influenced the value of milk marketed. Mill’s ratio was significant at outcome equation and it indicates that there were selectivity bias between those sample dairy producer households and heckman two-stage model was appropriate for the collected data. The value chain analysis revealed that the major value chain actors are input suppliers, producers, collectors, rural wholesalers, urban wholesalers, retailers, cafes and consumers. Value chain supporters are Meta Agricultural Office and Haramaya University. It is also found that milk passes through several intermediaries with value added products (boiled milk and yoghurt) before reaching the ultimate users. Therefore, policies aiming at increasing producer’s provision of modern inputs, number of dairy cows and improving livestock production of dairy cows and change of their attitudes towards dairy production and participating to dairy market were recommended to accelerate diary value chains development in the study area of Meta District.
Description: 112p.
URI: http://hdl.handle.net/123456789/3027
Date: 2016-05


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