Review on Constraints, Opportunities Traditional Coping Mechanism of Milk Marketing Participation in Ethiopia

Abstract

The major species used for milk production in Ethiopia are cattle, camel and cows which produce 83% of the total milk and 97 % of the cow milk comes from indigenous cattle breeds. The key development issues in dairy are low average milk productivity complicated by widespread food insecurity, growing gap between supply and demand in urban areas. Federal Cooperatives Commission of Ethiopia was created to organize and promote cooperatives at the national level and it ambitious five year development plan (2005-2010) to increasing the share of the cooperative input marketing and increasing the share in cooperative output marketing. Small-scale milk producers face many hidden costs that make it difficult for them to gain access to markets and productive assets. The relatively high marketing costs for milk in Ethiopia, the scattered nature milk markets and the risk attached to marketing of perishables in the tropics suggest that transaction costs play a central role in dairy production and marketing. Transaction costs are also the embodiment barriers to market participation by resource-poor small-holders. Milk groups allows them to share information, encourage one another in the business, build trust with the producers, reduce the transaction costs of monitoring, and can easily be reached by the regulators. They sometimes share contracts with sellers and buyers when there is more demand or supply. DOI: 10.7176/JMCR/69-01 Publication date: July 31 st 2020