Analyses of Impact of Improved Dairy Technology Adoption on Smallholder Household Livelihoods and Milk Value Chain in Selected Zones of Oromia and Amhara National Regional States, Ethiopia
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Date
2014-06
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Abstract
This study was carried out in Amhara and Oromia National Regional States of Ethiopia with
the study objectives to describe the milk production and milk utilization patterns of the
smallholder farmers, to analyze the raw milk value chain and milk marketing systems, to
identify the determinants of raw milk quality at farm level, to identify the determinants of dairy
technology adoption and analyze its impact on household livelihoods of smallholder farmers.
Totally, 384 randomly selected smallholder farmers from six study sites were included in the
study. Data were collected by questionnaire survey, farm observations, group discussions and
milk samples were also collected for both microbial and phyico-chemical analysis. Both
Statistical Package for Social Science (SPSS version 17.00) and STATA, version 11 software
were used for analyses. Pearson correlation, multiple regression, descriptive statistics,
analysis of variance (ANOVA) and econometric models such that Heckman two-stage model
and propensity score matching (PSM) were also used. About 28% of the interviewed farmers
were females that produced a significantly (P<0.05) greater average daily milk yield per
cow(4.39 liters) than the male headed ones (3.37 liters). In the milk value chain analysis seven
main stages (input supply, production, collection, wholesaling, processing, retailing and
consumption) were identified. Low milk production (28.4%), need of processing at home
(4.9%), unable to pay membership fee (2.3%), lack of awareness (2.1%), loss of trust on
cooperatives (1.6%), distance from cooperative center (0.3%) were identified as constraints
for smallholder farmers not to be a dairy cooperative members. 74 % of the total milk
produced per day was obtained from cooperative members of which 5.2% was utilized directly
at farm level and the remains (69.4%) of milk product was transferred indirectly to consumers
through the value chain. Milk quality deterioration started at household level and, the
microbial load increased through the value chain until it reaches to consumers. There was
also a significant difference (P<0.01) in all physico-chemical milk quality parameters between
the study areas. Dairy technology up-take constraints were financial problem, feed cost and
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semen problem for artificial insemination (AI) in Amhara National Regional State and
scarcity of crossbred heifers, land shortage and milk market for Oromia National Regional
State. Family size, farming experience, availability of extension services, availability of
crossbred cows, income from milk and milk products and availability of training in livestock
production had positive association with dairy technology adoption and its level of use
whereas age of household head and off-farm activity participation had negative association.
Introducing and disseminating crossbred cows to smallholder farmers with a continuous
follow up used to improve the livelihoods of smallholder farmers and narrow the milk demand
– supply gap. Hence, dairy technology input and/or service providers should undertake follow
ups to identify possible problems and/or evaluate the use and benefits of the interventions and
the concerned public institutions should institute milk quality control and quality based
payment to insure milk and milk products quality in the course of production, transportation,
processing, marketing and consumption were some of the recommendations forwarded.
Description
PhD Dissertation
Keywords
Dairy technology,, Adoption level, Livelihoods changes, Milk value chain