Gemeda DI, Geleta FT and Solomon Amsalu Gesese
Ethiopia is believed to have the largest Livestock population in Africa. Dairy has been identified as a priority area for the Ethiopian government, which aims to increase Ethiopian milk production at an average annual growth rate of 15.5% during the GTP II period (2015-2020), from 5,304 million litters to 9,418 million litters. This study was carried out to assess Determinants of dairy product market participation of the rural households in the case of Adaberga district in West Shewa zone of Oromia national regional state, Ethiopia. The study took a random sample of 120 dairy producer households by using multi-stage sampling procedure and employing a probability proportional to sample size sampling technique. For the individual producer, the decision to participate or not to participate in dairy production was formulated as binary choice probit model to identify factors that determine dairy product market participation. Probit estimation showed that dairy product market participation decision was significantly and positively affected by age, education level, land ownership, adopting dairy technology and access to market information of households. The implication is that there was a requirement of the above mentioned elements which in turn increases level of dairy production highly. Therefore, local government should introduce integrated dairy sector into the area as well as enhances quality and standard control market information. Overall, the study area is agro ecologically suitable for livestock raring, specially milking cows.
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