FRESH WHOLEMILK MARKETING CHANNELS AND DETERMINANTS OF MARKET PARTICIPATION IN DEBREZEIT TOWN

Abstract

The main objective of this paper was aimed to analyze Fresh Whole-milk marketing channels and determinants of market participation the case of Debrezeit Town, East Showa Zone Oromia National Regional State, Ethiopia. Using random sampling technique, 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 of data and analyzed using descriptive and econometric method of data analysis. The fresh whole-milk marketing channel analysis found chain actors along with their roles and the core actors identified in the district were input suppliers, producers, collectors, wholesales, 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%) and collectors were the lowest benefited market actors in channel 3 (9.48%). To analyze the determinants of smallholder milk producer household’s milk market participation decision and their level of participation Tobit regression model was used and results of Tobit regression model showed that out of thirteen independent variables, about seven independent variables namely: education level of the household, land holding size of the household, volume of milk allocated for home consumption, access to credit, experience of household in milk production, distance from market centers and the Amount of Milk Produced affected significantly the probability and level of participation of smallholder milk producers in milk market supply.