Structure conduct and performance of dairy market in Ada’a Berga district, Ethiopia

Abstract

The aim of this article was to investigate SCP of milk and butter market in Ada'a Berga District using SCP model. Primary data collected from randomly selected 123 smallholder farmers, 48 traders and 30 consumers were used to calculate the gross margin, concentration ratio(CR), regulation of market entry and exit and market conduct. The CR results showed that top four milk traders controlled 78.8% and 89.54% of the total volume of milk sold in Ada'a Berga and Holeta, respectively, and 61.29% and 63.46% butter sold in Ada'a Berga and Holeta, respectively. The CR of milk and butter markets were strongly oligopolistic. Education, market transparency and capital, political equality, corruption were barrier to entry milk and butter trade. The conduct analysis results showed that farmers use different markets outlets and price setting strategies to sell dairy products. The result of pricing setting was not competitive as 51.67% dairy price decisions were decided by buyers. In milk marketing, the maximum total gross marketing margin of producers share was 63.15% in channel III (producer, district retailer to consumers). The maximum producer's share in butter market was in channel V (producer, district retailer to consumers). Therefore, strengthening institutions that convey reliable and timely market information; support dairy market, improving collective action of farmers, address the challenges of financial access to smallholder farmers and traders to decrease oligopolistic nature of the market. Moreover, give attention to market infrastructural, training and yield increasing Gemechu Ordofa ABOUT THE AUTHOR Gemechu Ordofa was born on July 19/1987 in Wombera District. He completed his elementary and primary education at Senkora and high school and preparatory at Wombera. He then joined Haramaya University in 2007 and graduated in 2010 BSc. Degree in Agribusiness Management. He has been worked at Mandura district as a food security expert for three years. Then, he worked in Western Ethiopia Green livelihood project as extension worker at Gilgle Beles for two years. Then, he joined Haramaya University for collaborative Master of Science in Agricultural and Applied Economics in 2016 graduated MSc degree in Agricultural and Applied Economics on June 2019. His research interests focus on the impact analysis, food security, value chain, market chain, natural resources and environmental valuation.

The Organizational Structure, Conduct, and Outcomes of Coimbatore and Erode District Companies Using Different Sugar Substitutes

“…The performance of vegetable seed companies considered the most important factor was distribution depth. Ordofa et al [14] showed that dairy market in Ethiopia was strong oligopolistic type. The main barriers to entry milk and butter trade were corruption, political equality, education, market capital and transparency respectively.…”

Determinants of farmers’ decision to choice market outlets: Evidence from milk producer farmers in Ada’a Berga District Ethiopia

“…Previous studies showed that the decision of milk farmers on their choice of milk market outlet is influenced by the characteristics related to membership in a cooperative, form of payment, volume of milk produced, level of education and marketing costs (Jaiswal et al, 2016), being in rural areas, breed type, separate milking place, supply of hay (Ketema et al, 2016), transaction costs and socio-economic variables such as sex, dairy farming experience, dairy cooperative membership, number of milking cow owned, frequency of extension contact, non-farm income (Ayyano et al, 2020), milk buyers' related factors such as purchase frequency and quantity purchased (Berem et al, 2015), institutional factors such as access to credit and financial strength (Innocent et al, 2018), characteristics related to the seller (reputation, desire to control channel) and market information (Ishaq et al, 2017;Singh, 2018;Zegeyesh et al, 2017). Past studies on the dairy market show more attention given to participation of producers in the dairy market and marketing efficiency of the chain (Ordofa et al, 2021). However, limited work was done on the choice pattern of farmers when it comes to channel choice and the factors influencing those choices regarding outlet of milk market.…”

Cost Benefit Analysis of Key Actors in The Cocoa Beans Marketing

“…Competition or imbalance does not occur among members in marketing if there is coordination and supervision of the stakeholders, particularly the government . According to Ordofa, Zemedu and Tegegne, (2021) and , to keep marketing sustainable, it is necessary to increase the involvement of some institutions that can support the financial strengthening and marketing performance.…”