The general objective of the study is to undertake the dairy value chain analysis of Ada’a Berga district. Specific objectives of the study were to identify the key dairy products, marketing channels, and actors to analyze the structural behavior on the dairy market and to identify the factors that influence the decision to participate in the dairy market and the extent of participation by dairy households in the study area.
The study will help to understand the dairy products marketing channel and may give detailed information on how the dairy product marketing currently functioning in Ada’a Berga District. It may point out a factor that constrains dairy production and marketing system. The study may also generate information that helps policy makers how to formulate dairy products marketing development programs and guidelines for interventions that would improve the efficiency of the dairy products marketing channels. The findings of the study would help to make appropriate decisions by the farmers, consumers, traders, investors, and others who need the information for their respective purposes. Finally, this study will also serve as a reference for researchers in other parts of the country.
Table of Contents
1. INTRODUCTION
1.1. Background of the Study
1.2. Statements of the problems
1.3. Objectives of the study
1.4. Research Question
1.5. Significance of the study
1.6. Scope and Limitation of the Study
1.7. Organization of the Thesis
3. RESEARCH METHODOLOGY
3.1. Description of the study Area
3.2. Data Types, Sources and Method of Data Collection
3.3. Sampling Techniques and sample size Determination
3.3.1. Dairy Farmers Sample
3.3.2. Traders Sample
3.4. Methods of Data Analysis
3.4.1. Descriptive Analysis
3.4.2. Econometric model Analysis
3.5. Definition of Variables and hypotheses
4. RESULTS AND DISCUSSIONS
4.1. Characteristics of Sample Producers and Traders
4.1.1. Socio-Economic characteristics of dairy producer households
4.1.2. Numbers milking cows and dairy production
4.1.3. Access to institutional service of dairy producer households
4.1.4. Assessment of dairy producers marketing channel
4.2. Demographic and socioeconomic characteristics of sampled traders
4.3. Dairy Products Marketing Channel Analysis
4.4. Analysis of Dairy Market Structure-Conduct and Performance
4.4.1. Structure of milk and butter market
4.4.2. Conduct of Dairy market
4.4.3. Performance of milk and butter market
4.5. Econometric Model Results
4.5.1. Model diagnosis result
4.5.2. Factor affecting butter market Participation decision and level of Participation
5. SUMMARY, CONCLUSION AND POLICY RECOMMENDATIONS
5.1. Summary and conclusion
Research Objectives and Themes
The primary aim of this study is to conduct a comprehensive market chain analysis of dairy products in the Ada’a Berga district, specifically focusing on milk and butter. The research seeks to identify the key market actors, analyze the structure, conduct, and performance of the dairy market, and determine the socio-economic and institutional factors influencing the market participation decisions and the intensity of market supply among smallholder dairy households.
- Identification of dairy market actors and their vertical linkages.
- Structural analysis of the dairy market using concentration ratios.
- Evaluation of market performance through marketing margins and cost analysis.
- Econometric modeling of the determinants of market participation and supply levels using the Heckman two-step approach.
- Policy recommendations to improve market efficiency and smallholder inclusion.
Excerpt from the Book
4.1.3. Access to institutional service of dairy producer households
The result of chi-square test statistics indicated that variation in access to extension contact, access to credit, access to market information, breed type and membership of dairy cooperatives between milk and butter market participants and non-participants was statistically significant at 1% probability level. The survey result shows that, 70 % of the households had access to extension contact and 30% did not access extension contact. About 60% of farmers who had access to extension contact were sold milk in the market. The survey result also shows that about 46% households with access to extension contact participated in the butter market. Frequency of access to extension contact (Appendix.1).
Survey results illustrate that 63.4% of the households had access to credit and 36.6 did not access credit services. Among households' access to credit about 49% and 47% households were participants in the milk and butter market respectively. The main sources of credit and objective credit taken by households related to dairy (see Appendix 2).The study result revealed that about 66.67% of the sample milk producers had access to market information services and 33% had not accessed market information. Out of farmer’s access to market information, about 43% were participants in the milk market. About 52% of households who had access to market information were participating in the butter market. The households’ access to market information, kind of information, source of information (see Appendix 3).
Survey results found that about 54% sampled households were members of dairy cooperatives and remaining about 46% did not belong to dairy cooperatives. The household’s membership in dairy cooperatives is about 43% participants in the milk market and 37.7% of households who are members of the dairy cooperative participated in the butter market. Survey results found that about 60% of households owned local breed milking cows, 25% own both exotic and local breed milking cows and 15% own exotic breeds.
Summary of Chapters
1. INTRODUCTION: This chapter introduces the Ethiopian dairy sector, outlines the specific research objectives concerning the Ada’a Berga district, and establishes the research questions and scope of the study.
3. RESEARCH METHODOLOGY: This section details the research design, including the multi-stage sampling procedure, data collection methods from farmers and traders, and the theoretical underpinnings for the Heckman two-step econometric model.
4. RESULTS AND DISCUSSIONS: This core chapter presents the descriptive statistics on household characteristics and the empirical findings regarding market structure, conduct, and performance, as well as the results of the econometric models influencing market participation.
5. SUMMARY, CONCLUSION AND POLICY RECOMMENDATIONS: This final chapter synthesizes the key findings and provides actionable policy recommendations aimed at enhancing the efficiency of the dairy market chain and supporting smallholder dairy farmers.
Keywords
Market Chain, Butter, Milk, Heckman-two-stage, Ada’a Berga, Ethiopia, Market Structure, Dairy Cooperatives, Smallholder Farmers, Market Participation, Oligopoly, Agricultural Economics, Marketing Margin.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on analyzing the market chain for dairy products (specifically milk and butter) in the Ada’a Berga district of Ethiopia to understand how current marketing systems function.
What are the core research themes?
The study examines market actors, their linkages, market structure-conduct-performance (S-C-P), and the various socio-economic and institutional factors that drive market participation among smallholder farmers.
What is the main objective of the thesis?
The general objective is to conduct a dairy value chain analysis in the Ada’a Berga district, identifying constraints and opportunities for improving the market efficiency for smallholder producers.
Which scientific methodology is employed?
The study utilizes a Heckman two-step selection model to account for potential selectivity bias when analyzing factors affecting market participation and the level of supply, alongside descriptive statistics for S-C-P analysis.
What does the main body of the work address?
The main body covers a detailed analysis of producer characteristics, the structure of the milk and butter markets (revealing strong oligopolistic traits), the behavior of traders, and the performance indicators such as marketing margins.
Which keywords characterize this work?
The work is defined by terms such as Market Chain, Heckman-two-stage, Dairy Cooperatives, Smallholder Farmers, and Market Structure.
How does market distance affect dairy farmers in this study?
The study finds that distance from the nearest market center is a significant barrier; increased distance often leads to higher transaction costs and can reduce the probability of participating in the fluid milk market, often pushing farmers to process milk into butter instead.
Why are dairy cooperatives important according to the findings?
The findings indicate that membership in dairy cooperatives significantly enhances market participation and supply levels, as they provide better access to credit, information, and collective bargaining power.
- Quote paper
- Gemechu Jara (Author), 2019, Dairy Products Marketing Channels Analysis. The Case of Ada’a Berga District, Ethiopia, Munich, GRIN Verlag, https://www.grin.com/document/1165727
