Market participation and sales intensity among dairy farmers in Sululta District, Ethiopia

Abstract

This study examined the determinants of milk market participation and sales intensity among smallholder dairy producers in Sululta District, Ethiopia, an area with high dairy production potential but persistent market constraints. Primary data were collected from 150 systematically selected households and analyzed using the Heckman two-stage selection model. The findings showed that household size had a negative impact on market participation, with each extra household member lowering the likelihood of participation increased by 8% ( p < 0.05), most likely as a result of higher milk consumption. On the other hand, the amount of milk sold increased by 4.3 L per day ( p < 0.01) for every extra milking cow, indicating higher production capacity and marketable surplus. The chance of market participation was considerably raised by education level, experience in dairy farming, access to extension services, membership in a cooperative, availability of market information, and proximity to urban markets. The amount of milk sold was likewise found to be positively impacted by access to market information. Additionally, while the volume of milk marketed decreased with increasing distance to urban markets, education, dairy farming experience, livestock size, and milk yield significantly boosted sales intensity. These results imply that increasing market accessibility and expanding farmers' access to cooperative networks, education, extension services, and market knowledge can boost dairy market participation and commercialization. These findings offer practical insights for policymakers and development practitioners to strengthen extension services, improve market information systems, enhance dairy productivity, and reduce market access constraints to promote smallholder market integration and dairy sector development in Ethiopia.