Commercialization of Cow Milk Production in West Hararghe Zone, Oromia National Regional State, Ethiopia

Abstract

Livestock plays a vital role in the livelihood of many people in Ethiopia. However, a number of challenges hindered the development of the dairy sector along with its commercialization. Advancing commercialization of the rural generations was a foundation of the advancement and poverty reduction policies of Ethiopia. Cross-sectional data from 385 randomly selected households in Eastern Ethiopia were used in this study to assess the commercialization of cow milk producers. Descriptive statistics and the two limit Tobit econometric models were used to analyze the data. The average commercialization index was 0.434, indicating that each household sold 43.4 percent of the milk produced during the survey period. Ownership of improved breed cow, cooperative participation, access to market information, and quantity of milk produce influenced milk commercialization positively, but household size and distance to the nearest market influenced it negatively. The study suggests strengthening policies to improve rural family planning, strengthening farmer cooperatives to reinforce knowledge sharing among farmers for enhancing farmer resource endowment, and promoting improved breed varieties. The commercialization of milk producers will also expand as a result of policies that try to lower the transaction costs of accessing markets, improve the capacity of rural institutions, and encourage value addition and market links among various market players.