| Abstract: | The aim of this paper was to analyze fresh whole-milk marketing channels and
determinants of market participation in Bishoftu town. Using random sampling
techniques, 141 smallholder milk producer households were selected and 76 milk
traders from different marketing actors were involved in the sample. The required
data were collected from both secondary and primary sources and analyzed using
descriptive and econometric methods of data analysis. The core fresh whole-milk
marketing actors identified in the study area were input suppliers, producers,
collectors, wholesalers, processors, retailers, and consumers. Marketing margin
among the actors was analyzed across the main milk marketing channels. The
benefit share of producers ranges from 28.42% (in channel 3) to 100% (in channel
1). Regarding traders, cafes /hotels were the highest benefited market actors for the
share of GMM in channel 3 (62.1%). To analyze the determinants of smallholder
milk producer household’s milk market participation decision and their level of
participation, Tobit regression model was used. The results of the Tobit regression
model revealed that out of thirteen independent variables, about seven independent
variables significantly affected the probability and level of participation of
smallholder milk producers in milk market supply. . These variables were education
level of the household, land holding size, the volume of milk allocated for home
consumption, access to credit, experience in milk production, distance from market
centers and the amount of milk produced. |
