Zeitschrift für Agrarwissenschaft und Lebensmittelforschung
Offener Zugang
ISSN: 2593-9173
ISSN: 2593-9173
Bedasa Terefa, Sena Amsalu, Shewadinber Mokonnen, Genet Shiferaw
Milk production is one of the major income generating activities for smallholder dairy farmers in Ethiopia but the sector is currently facing production and marketing challenges. Contract farming has been introduced as solution. This study examined factors that influence farmers’ participation in dairy contract farming in North shewa zones of Oromia region, Ethiopia. The main objective of this study was to identify the factors affecting participation decision and volume of milk sold through dairy contract farming. To achieve this objective, multistage sampling techniques were used to select sample respondents. Descriptive statistics, inferential statistics, and econometric model were used for data analysis. Data were collected from 398 randomly selected farm households. The results of survey show that, there is a statistically significant mean difference between the two groups in terms of milk productivity at 1% significance level. The average milk productive of participant and non-participant households were 2.09 and 1.49 liters per lactating cow respectively. The t-test result shows that there is a statistically significant mean difference between the two groups in terms of average of milk produce per day. Even though, the average milk yield of participants were greater than that set by agricultural sample survey during 2019 for North Shewa zone (per day is 1.66 Lt). The double hurdle model showed that sex, Age and lactating cow had positive and significant effects on decision regarding contract farming participation, while it is negatively related with family size and Distance to milk collectors. Based on this result, the study recommends the stakeholder to focus improvements on the above significant variables to increase participation level and volume of milk sold in contract farming in the study area.