Agricultural and Biological Research

Milk market structure-conduct and performance: The case of selected districts of East and West Gojjam zones of Amhara regional state, Ethiopia

Desalegn Wondim*, Mezgebu Aynalem, Ayalew Fekadie

Even though number of cattle population in different parts of Ethiopia and smallholders economic dependency on their animals contradict for long period of times, recently dairying becomes an important farming activity in Amanuel and Dembecha districts. Even if these two districts are potential in milk production and marketing activities, scanty of information faced regarding milk marketing channels, actors and the general market structure, conduct and performance of milk in Machakel and Dembecha districts. Thus, this study attempts to assess the structure, conduct and performance of milk marketing in the study areas. Data were collected both from primary and secondary sources by using appropriate tools. Primary data were collected from 244 milk producers and 50 milk traders from both districts by using semi-structured set of questions. Moreover, FGD, key informant interview and direct observation was used to strengthen the collected data from primary respondents. Finally, the S-C-P paradigm showed that there was imperfect market competition between milk traders and TGMM was highest in channel II (50.62%) and lowest in channel I (28%) without considering marketing channel V that producers take all portions of consumers’ price. Producers’ share was the highest in marketing channel I (72%) that milk producers sell to milk cooperatives in a better price than exploited by other intermediaries. Whereas producers’ gross marketing margin was lowest in marketing channel II (49.38%) that in this channel hotels added customer considerable value to milk and take high portion of the consumers’ price. Thus, both Woreda office of agriculture should integrate production extension service with milk marketing, milk cooperative benefits and income generation ability of the business by calling and inviting model milk producers in FTC and other discussion meetings.