DETERMINANTS OF MILK PRODUCTION AMONG SMALLHOLDER DAIRY FARMERS: THE CASE OF WACHALE DISTRICT, NORTH SHEWA ZONE, OROMIA REGIONAL STATE, ETHIOPIA

Abstract

The study aims at assessing the “Determinants of Milk Production among Smallholder Dairy Farmers in the Wachale district of the North Shewa Zone in Oromia National Regional State. The study was conducted in four purposely selected local administrations of the Wachale district: Bosoke Jate, Mukaturi, Galmo Gora, and Bidaru kebeles. Dairy Farmers from each local administration were selected using systematic random sampling. Data were collected from 330 dairy-producing households and cooperatives using structured questionnaires, discussions, and in-depth interviews with key informants. The Ordinary least-squire econometric estimation technique was employed to identify determinants that affect dairy production. The model result showed that dairy production was strongly and significantly affected by the use of Age, experience in milk production, land holding size, and milking frequency. Shortage of feed & its high price, seasonality of demand particularly in fasting time and lack of appropriate milk handling equipment’s and cooling facilities were the major challenges of dairy production and marketing in the area. Milk was the most important dairy products marketed in the areas. Dairy cooperatives, retailers, and consumers were found to be the main milk market channel of the study areas. The dairy market in the study area uses informal marketing system, which shows the underdevelopment of dairy marketing. Thus, dairy development interventions should be aimed at addressing both dairy production technological gaps and marketing problems. The study shows that there is a high demand for dairy products. Therefore, strengthening dairy producers and cooperatives, and improving access to services should receive due attention in order to improve dairy production and marketing in the study area by all dairy development stakeholders.