Browse > Article
http://dx.doi.org/10.13106/jidb.2021.vol12.no10.19

Factors Affecting the Participation of Milk Producers in Dairy Marketing Cooperatives: Evidence from Ethiopia  

BEKELE, Eshetu Tefera (Tongmyong University College of Business Administration, Department of Distribution and Logistics)
Publication Information
The Journal of Industrial Distribution & Business / v.12, no.10, 2021 , pp. 19-30 More about this Journal
Abstract
Purpose: Dairy marketing cooperatives operate in the agricultural sector of the Ethiopian economy and are supposed to increase the efficiency of the marketing system. This paper aims to study factors affecting the participation of farm households' in dairy marketing cooperatives. Research design, data, and methodology: The research has focused on one primary question. What are the possible factors that affect farm households' participation in dairy marketing cooperatives? The survey questionnaire was developed and an interview was made using enumerators. A total of 1500 sample households were selected randomly using the method of sampling with probability proportionate to size. Descriptive and inferential statistical analysis (binary logit model) was used for analysis. Results: The study result revealed that among thirteen explanatory variables hypothesized to affect dairy producer farmers' participation in dairy marketing cooperatives; eleven were found to be statistically significant. From these findings, it is observed that members of the dairy cooperatives have significant advantage over nonmembers. Conclusions: Both internal and external intervention measures are suggested. Internally, the cooperatives' board of directors should design appropriate strategies to attract nonmembers to improve future participation, and, externally, government, NGOs, and other stakeholders need to emphasize methods that increase nonmembers' participation in dairy marketing cooperatives.
Keywords
Marketing System; Cooperatives; Participation; Stakeholders; Ethiopia;
Citations & Related Records
연도 인용수 순위
  • Reference
1 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. https://doi.org/10.1111/apce.12035.   DOI
2 Abebaw, D., & Haile, M. G. (2013). The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia. Food policy, 38, 82-91. https://doi.org/10.1016/j.foodpol.2012.10.003.   DOI
3 Abegaz, K. H. (2017). Determinants of food security: evidence from Ethiopian Rural Household Survey (ERHS) using pooled cross-sectional study. Agriculture & Food Security, 6(1), 1-7.   DOI
4 Benson, T. (2014). Building good management practices in Ethiopian agricultural cooperatives through regular financial audits. Journal of Co-operative Organization and Management, 2(2), 72-82. https://doi.org/10.1016/j.jcom.2014.10.001.   DOI
5 Bereda, A., Yilma, Z., & Nurfeta, A. (2014). Dairy production system and constraints in Ezha districts of the Gurage zone, Southern Ethiopia. Global Veterinaria, 12(2), 181-186. https://10.5829/idosi.gv.2014.12.02.81199.   DOI
6 Birchall, J. (2003). Rediscovering the cooperative advantage: Poverty reduction through self-help. International Labour Organisation (ILO).
7 Cakir, M., & Balagtas, J. V. (2012). Estimating market power of US dairy cooperatives in the fluid milk market. American Journal of Agricultural Economics, 94(3), 647-658. https://doi.org/10.1093/ajae/aar136.   DOI
8 Kefa, C., Ng'ang'a, S. I., Ogada, J. O., Omboto, P. I., Kubowon, P. C., Cherotwo, F. H., & Muiruri, E. J. (2012). Socio-Economic and Institutional Constraints to Accessing Credit among Smallholder Farmers in Nyandarua District, Kenya.
9 De Janvry, A., & Sadoulet, E. (2001). Income strategies among rural households in Mexico: The role of off-farm activities. World Development, 29(3), 467-480. https://10.1016/S0305-750X(00)00113-3.   DOI
10 Israel GD (2013). Determining sample size. Institute of Food and Agricultural Sciences (IFAS). Retrieved May 25, 2017, from https://www.psycholosphere.com/Determining%20sample%20size%20by%20Glen%20Israel.pdf.
11 Bhuyan, S. (2000). Grower and manager issues in fruit and vegetable cooperatives. In NCR-194 Annual Meeting.
12 Misganaw, G., Hailemariam, F., Mamo, D., Tajebe, S., Seare & Nigussie, Y. (2017). Production Potential, challenges and prospects of dairy cooperatives in Aksum and Adwa Towns, Ethiopia. Journal of Dairy, Veterinary & Animal Research, 5(6), 221-226.
13 Moroda, G. T., Tolossa, D., & Semie, N. (2018). Food insecurity of rural households in Boset district of Ethiopia: a suite of indicators analysis. Agriculture & Food Security, 7(1), 1-16.   DOI
14 Ruben, R. (2001). Nonfarm employment and poverty alleviation of rural farm households in Honduras. World Development, 29(3), 549-560.   DOI
15 Tittonell, P. (2014). Livelihood strategies, resilience and transformability in African agroecosystems. Agricultural Systems, 126, 3-14. https://doi.org/10.1016/j.agsy.2013.10.010.   DOI
16 Bernard, T., & Spielman, D. J. (2009). Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia. Food policy, 34(1), 60-69.   DOI
17 Camanzi, L., Malorgio, G., & Azcarate, T. G. (2011). The role of producer organizations in supply concentration and marketing: a comparison between European countries in the fruit and vegetable sector. Journal of Food Products Marketing, 17(2-3), 327-354. https://doi.org/10.1080/10454446.2011.548706.   DOI
18 Cook, M. L. (1995). The future of US agricultural cooperatives: A neo-institutional approach. American Journal of Agricultural Economics, 77(5), 1153-1159. https://doi.org/10.2307/1243338.   DOI
19 Deller, S., Hoyt, A., Hueth, B., & Sundaram-Stukel, R. (2009). Research on the economic impact of cooperatives. University of Wisconsin Center for Cooperatives, 231(2209), 232-3.
20 Demissie, B., Komicha, H. H., & Kedir, A. (2014). Factors affecting camel and cow milk marketed surplus: the case of eastern Ethiopia. African Journal of Agricultural Science and Technology, 2(2), 54-58.
21 Emana, B. (2009). Cooperatives: a path to economic and social empowerment in Ethiopia. Dar es Salaam: ILO.
22 Fafchamps, M., & Hill, R. V. (2005). Selling at the farmgate or traveling to market. American Journal of Agricultural Economics, 87(3), 717-734. https://doi.org/10.1111/j.1467-8276.2005.00758.x.   DOI
23 Fischer, E., & Qaim, M. (2012). Linking smallholders to markets: determinants and impacts of farmer collective action in Kenya. World Development, 40(6), 1255-1268.   DOI
24 Francesconi, G. N., & Heerink, N. (2010). Ethiopian agricultural cooperatives in an era of global commodity exchange: does organisational form matter? Journal of African Economies, 20(1), 153-177. https://doi.org/10.1093/jae/ejq036.   DOI
25 Fulton, J. R., & Adamowicz, W. L. (1993). Factors that influence the commitment of members to their cooperative organization. Journal of Agricultural Cooperation, 8(1141-2016-92587), 39-53. https://doi.org.10.22004/ag.econ.46391.   DOI
26 Fulton, J. R., & King, R. P. (1993). Relationships among information expenditure, economic performance, and size in local grain marketing cooperatives in the upper midwest. Agribusiness, 9(2), 143-157.   DOI
27 Gujarati, D. N. (2009). Basic econometrics (5th ed.). Tata McGraw-Hill Education.
28 Haggblade, S., Hazell, P., & Brown, J. (1989). Farm-nonfarm linkages in rural sub-Saharan Africa. World Development, 17(8), 1173-1201.   DOI
29 Holloway, G. J. (2000). How to make a milk market: A case study from the Ethiopian highlands (Vol. 28): ILRI (aka ILCA and ILRAD).
30 Jang, W., & Klein, C. M. (2011). Supply chain models for small agricultural enterprises. Annals of Operations Research, 190(1), 359-374. https://doi: 10.1007/s10479-009-0521-8   DOI
31 Kacharo, D. K. (2016). The use of mobile phones in agricultural extension in Southern Ethiopia (Doctoral dissertation, Sokoine University of Agriculture).
32 Fulton, M., & Giannakas, K. (2001). Organizational commitment in a mixed oligopoly: Agricultural cooperatives and investor-owned firms. American Journal of Agricultural Economics, 83(5), 1258-1265. https://doi.org/10.1111/0002-9092.00276.   DOI
33 Adepoju, A. O., & Obayelu, O. A. (2013). Livelihood diversification and welfare of rural households in Ondo State, Nigeria. Journal of Development and Agricultural Economics, 5(12), 482-489. https://10.5897/JDAE2013.0497.   DOI
34 Balirwa, E. K., Nalunkuuma, J., & Sserunkuuma, D. (2016). Determinants of smallholder dairy farmers' volume of milk sales in Uganda's agro-ecological zones. International Journal of Applied and Pure Science and Agriculture, 2(8), 97-109.
35 Barrett, C. B. (2008). Smallholder market participation: Concepts and evidence from eastern and southern Africa. Food policy, 33(4), 299-317. https://doi:10.1016/j.foodpol.2007.10.005.   DOI
36 Black, W. E., & Knutson, R. D. (1984). Attitudes and Opinions of Texas Agricultural Cooperative Members. Texas FARMER Collection.
37 Klein, K. K., Richards, T. J., & Walburger, A. (1997). Determinants of co-operative patronage in Alberta. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 45(2), 93-110.   DOI
38 Misra, S. K., Carley, D. H., & Fletcher, S. M. (1993). Dairy farmers' evaluation of dairy cooperatives. Agribusiness, 9(4), 351-361.   DOI
39 Ortmann, G. F., & King, R. P. (2007). Agricultural cooperatives I: History, theory and problems. Agrekon, 46(1), 40-68. https://doi.org/10.1080/0303/853.2007.9523760.   DOI
40 Sexton, R. J. (1990). Imperfect competition in agricultural markets and the role of cooperatives: A spatial analysis. American Journal of Agricultural Economics, 72(3), 709-720.   DOI
41 Tefera, T., & Tefera, F. (2014). Determinants of households food security and coping strategies for food shortfall in Mareko District, Guraghe Zone Southern Ethiopia. Journal of Food Security, 2(3), 92-99.
42 Van der Walt, L. O. U. W. (2005, August). The resuscitation of the cooperative sector in South Africa. In International Cooperative Alliance XXI International Cooperative Research Conference (pp. 11-14).
43 Wilkins, P. C., & Stafford, T. H. (1982). Dairy Farmers' Evaluation of Northeastern Dairy Cooperatives. USDA (No. 19). ACS Research Report.
44 Mojo, D., Degefa, T., & Fischer, C. (2017). The Development of Agricultural Cooperatives in Ethiopia: History and a Framework for Future Trajectory. Ethiopian Journal of the Social Sciences and Humanities, 13(1), 49-77.   DOI
45 Abafita, J., & Kim, K. R. (2014). Determinants of household food security in rural Ethiopia: An empirical analysis. Journal of Rural Development/Nongchon-Gyeongje, 37(1071-2016-86950), 129-157. https://doi.org/10.22004/ag.econ.196613.   DOI
46 Nasir, M. (2014). Determinants of Off Farm Employment: Case of Abeshge Woreda, Guraga Zone, SNNPRS, Ethiopia. Developing Country Studies, 4(7), 39-51.
47 Bebe, B. O., Udo, H. M., Rowlands, G. J., & Thorpe, W. (2003). Smallholder dairy systems in the Kenya highlands: breed preferences and breeding practices. Livestock Production Science, 82(2-3), 117-127.   DOI
48 Bernard, T., Taffesse, A. S., & Gabre-Madhin, E. (2008). Impact of cooperatives on smallholders' commercialization behavior: evidence from Ethiopia. Agricultural Economics, 39(2), 147-161. https://doi.org/10.1111/j.1574-0862.2008. 00324.x.   DOI
49 Bishop, D., & McConnen, R. (1999). Purpose of cooperative. VOCA/Ethiopia, Addis Ababa, Ethiopia.