Impact of Diverse Technical and Economic Factors on Sustainable Farmer Market Choices: The Case of Cyprus Sheep and Goat Milk Channel Choice

Abstract

This study investigated the impact of diverse technical and economic factors on sustainable dairy small ruminant farmer market choices in Cyprus. It determined the factors that affect farmer choice between selling milk to a large dairy processor or a traditional small dairy. Detailed interviews with farmers based on a structured questionnaire were conducted in the frame of the DoMEsTIc research project. We used a Probit model to relate adoption behavior to farmer, farm, and market characteristics. Both technico-economic and market aspects contributed to farmer decisions on sustainable milk market channels. Important technico-economic factors were flock size, existence of successor, availability of family labour, computer use, and breeding experience. Market factors that affected farmer decision for a suitable milk market channel were the sheep milk price, the type of contract with buyers (formal or informal), the payment method and the price differentiation according to specific milk quality specifications.