Value Chain Analysis of Milk in Dalocha District, Siltie Zone, Central Ethiopia Region
Year: 2025
Type: article
Abstract: ABSTRACT The dairy sector in Ethiopia plays a vital role in livelihoods and food security, yet smallholder farmers face persistent challenges in milk production, marketing, and value chain.This study investigated the value chain analysis of milk and the determinants of the supply of milk to the market in the Dalocha District of the Siltie Zone in Central Ethiopia. A cross-sectional research design was employed, capturing data from a specific point in time, involving both primary and secondary sources. Data collection was accomplished through household survey questionnaire. The study utilized three stage sampling to select 4 representative kebeles from 18 kebeles and drawing a total of 207 samples. Descriptive statistical methods were used to summarize socioeconomic characteristics, while econometric analysis, specifically the Heckman selection model, was applied to examine the factors influencing market participation and the volume of milk supplied. The milk markets have a market concentration ratio of 40.73%, less than 50%, indicating a loose oligopoly with four firms controlling 40.73% of the market. The study also revealed that a total marketing margin of 33.33% for wholesalers and retailers in the milk value chain, with a producer's gross margin of 66.67%. The study identified three distinct marketing channels (producer-wholesaler-retailer-consumer, producer-retailer-consumer, and producerconsumer), revealing substantial economic margins retained by different actors within the value chain. A Heckman selection model was used to identify factors affecting milk market participation and supply. The findings revealed that distance to the nearest milk market, access to credit, access to milk market information, livestock holding, the number of children under five and breed type play important roles in determining quantity of milk market supply. The findings also revealed that distance to the nearest milk market, access to credit, education level, frequency of extension services, livestock holding, the number of children under five and breed type play important roles in determining milk market participation. Policymakers should enhance rural market access and financial inclusion for smallholder dairy farmers in Dalocha District through investments in milk collection centers, transport infrastructure, microcredit programs, and child nutrition programs.
DOI: 10.20372/nadre:9398
Author: SHAFI SABIR
Language: English
Subfield: Agronomy and Crop Science
Domain: Life Sciences
Open Access status: green
OpenAlex ID: W6963745925
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