PULL AND PUSH FACTORS FOR PRODUCERS’ MEMBERSHIP IN DAIRY MARKETING COOPERATIVES IN JIMMA ZONE, OROMIA, ETHIOPIA


Abstract

Despite the efforts made to promote dairy marketing cooperatives, smallholder dairy producers in rural Ethiopia, prefer informal markets to sell their dairy products. The factors determining their preference towards formal markets such as membership into cooperatives is not well identified. In this paper, we analyze the key factors affecting smallholder dairy producers’ membership into dairy marketing cooperatives in Ethiopia using cross-sectional survey data from 73 cooperative members and 149 non-members, and probit regression models. We found positive effects of age, sex and education of household head and frequency of extension services; and negative effects of distance to the cooperative milk collection centers on dairy producers’ preference for membership into dairy marketing cooperatives. The findings imply the need for awareness initiatives – strengthening extension services, trainings and demonstrations; enhancing access to technology; and infrastructure development. Particularly, affirmative action in the form of targeted intervention is needed to enhance female headed households’ membership into dairy marketing cooperatives and to help them benefit from collective actions.

Keywords

dairy marketing cooperatives; producers’ participation; membership; Ethiopia

Abate, G.T., Francesconi, G.N., Getnet, K. (2014). Impact of agricultural cooperatives on smallholders’technical efficiency: empirical evidence from Ethiopia. Annals of Public and Cooperative Economics, 85(2), 257-286.

Belay, D., Janssens, G.P.J. (2014). Smallholder milk processing and marketing characteristics at urban dairy farms in Jimma town of Oromia Regional State, Ethiopia. Global Veterinaria, 13(3), 285-292.

Bekele, A.D., Pillai, G.B. (2011). Training needs of members in cooperative dairy marketing in Ethiopia. African Journal of Agricultural Research, 6(2), 488-507.

Bernard, T., Taffesse, A.S., Gabre‐M, E. (2008). Impact of cooperatives on smallholders' commercialization behavior: evidence from Ethiopia. Agricultural Economics, 39(2), 147-161.

Bezabih, E. (2009). Cooperatives: a path to economic and social empowerment in Ethiopia. ILO.

Birhanu, K. (2012). Market access and value chain analysis of dairy industry in Ethiopia: The case of Wolaita Zone (Doctoral dissertation, Haramaya University).

Bultosa, T. (2016). Key factors affecting market participation of small. Paper for presentation at the 14 th International Conference on the Ethiopian Economy. Ethiopian Economic Association (EEA) Conference Centre, Addis Ababa, Ethiopia, July 21-23, 2016.

Chagwiza. C., Muradian, R., Ruben, R., (2016). Cooperative membership and dairy performance among smallholders in Ethiopia. Food Policy, 59, 165-173.

Dehinenet, G. (2014). “Analyses of impact of improved dairy technology adoption on smallholder household livelihoods and milk value chain in selected Zones of Oromia and Amhara National (Doctoral dissertation, College of Veterinary Medicine and Agriculture, Addis Ababa University).

Eshetu, T. (2008). The role of dairy cooperatives in stimulating innovation and market oriented smallholders development: the case of Ada’a dairy cooperative, Central Ethiopia (Doctoral dissertation, Haramaya University).

Eshetu, T. (2015). Performance and determinants of household’s participation in dairy marketing cooperatives: The Case of Lemu-Arya and Bekoji Dairy Marketing Cooperatives, Arsi Zone, Oromia Region, Ethiopia.

Eshetu, T., Assefa, G. (2015). Performance and determinants of household’s participation in dairy marketing cooperatives: The case of Lemu-Arya and Bekoji dairy marketing cooperatives, Arsi zone, Oromiya region, Ethiopia:©Global Science Research Journalism: 2408-5480 Vol. 3 (3), pp. 214-229, March, 2015.

Fischer, E., Qaim, M. (2012). Linking smallholders to markets: determinants and impacts of farmer collective action in Kenya. World Development, 40(6), 1255-1268.

Getnet, K., Tsegaye, A. (2012). Agricultural cooperatives and rural livelihoods: Evidence from Ethiopia. Annals of Public and Cooperative Economics, 83(2), 181-198.

Girma, D., Verschuur, M. (2014). Analysis of milk value chain: the case of Ada’a dairy cooperative in Ada’a district, East Shawa zone of Oromia regional state, Ethiopia. Journal of Agricultural Research 3 (1), 016-025.

Hadush, H. (2014). Adoption and impact of micro irrigation on household income: The case of Eastern Tigray. Doctoral dissertation, Mekelle University.

Jimma city Agriculture Office, (2016). Annual work report.

Jimma Zone Livestock and Fisheries Development Offices, (2016). Documentary data.

Karli, B., Bilgiç, A., Çelik, Y. (2006). Factors affecting farmers’ decision to enter agricultural cooperatives using random utility model in the South Eastern Anatolian region of Turkey. Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS), 107(2), 115-127.

Kersa District Livestock and Fishery Development Offices (KDFLDO), (2016). Annual Ousterus Synchronization work report.

Kersa District Livestock and Fishery Development Offices (KDFLDO), (2017). Annual work report.

Kersa District Office of Agriculture and Natural resource, 2016/2017. Annual work report.

Ma, W., Abdulai, A. (2016). Does cooperative membership improve household welfare? Evidence from apple farmers in China. Food Policy, 58, 94-102.

Nagler, J. (1994). Scobit: an alternative estimator to logit and probit. American Journal of Political Science, 38(1), 230-255.

Nugussie, W. Z. (2010). Why some rural people become members of agricultural cooperatives while others do not. Journal of Development and Agricultural Economics, 2(4), 138-144.

Nugusse, W. Z., Van Huylenbroeck, G., Buysse, J. (2013). Determinants of rural people to join cooperatives in Northern Ethiopia. International Journal of Social Economics, 40(12), 1094-1107.

Rajendran, K., Mohanty, S. (2004). Dairy cooperatives and milk marketing in India: constraints and opportunities. Journal of Food Distribution Research, 35(2), 34-41.

Shapiro, B.I., Gebru, G., Desta, S., Negassa, A., Nigussie, K., Aboset, G., Mechal, H. (2015). Ethiopia livestock master plan. ILRI Project Report. Nairobi, Kenya: International Livestock Research Institute (ILRI).

Ulfina, G., Jiregna, D., Alganesh, T., Shiv Prasad, L., Mulugeta, K. (2013). Dairy production potential and challenges in western Oromia milk value chain, Oromia, Ethiopia. Journal of Agriculture and Sustainability, 2(1), 1-12.

Uzunoz, M., Akcay, Y. (2012). A case study of probit model analysis of factors affecting consumption of packed and unpacked milk in Turkey. Economics Research International, 2012, 1-8.

Yilma, Z., Emmanuelle, G., Ameha, S., Rudolf, F. (2011). "A review of the Ethiopian dairy sector." Addis Ababa, Ethiopia: FAO Sub Regional Office for Eastern Africa (FAO/SFE) (2011).
Download

Published : 2019-04-05


Fikadu, L., Duguma, G., & Abdissa, F. (2019). PULL AND PUSH FACTORS FOR PRODUCERS’ MEMBERSHIP IN DAIRY MARKETING COOPERATIVES IN JIMMA ZONE, OROMIA, ETHIOPIA. Journal of Agribusiness and Rural Development, 51(1), 21–34. https://doi.org/10.17306/J.JARD.2019.01162

Lalisa Fikadu 
Jimma University College of Agriculture and Veterinary Medicine  Ethiopia
Gemeda Duguma 
PULL AND PUSH FACTORS FOR PRODUCERS’ MEMBERSHIP IN DAIRY MARKETING COOPERATIVES IN JIMMA ZONE, OROMIA, ETHIOPIA  Ethiopia
Fikadu Mitiku Abdissa  fikadom@yahoo.com
Jimma University College of Agriculture and Veterinary Medicine  Ethiopia
https://orcid.org/0000-0001-8543-8746


CitedBy Crossref
2

CitedBy Scopus
0

HTML tutorial

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This journal permits and encourages authors to post items submitted to the journal on personal websites or institutional repositories both prior to and after publication, while providing bibliographic details that credit, if applicable, its publication in this journal.