Multivariate Analysis of Members’ Marketing Participation in Dairy Cooperatives in Arsi Zone, Oromia Region, Ethiopia

Abstract

The study has been conducted with the main objective of analyzing members’ marketing participation and factors influencing their participation in dairy cooperatives in Arsi Zone of the Oromia Regional State, Ethiopia. In this study, three stage random sampling method was adopted for the selection of the respondents. The study has been employed survey method with field orientation and structured interview schedule was used as a tool for collecting data from members. 151 members from 4 dairy cooperatives were selected at random for the study using probability proportionate to size of the population (PPS).Additionally, 56 participants of FGD (32 dairy cooperative officials, 15 reputed elders of the local community, 4 village (PA) leaders, and5 marketing experts from zonal and woreda promotion offices) were involved in the study. Karl Pearson’s Coefficient of Correlation(r), the Ordinal Logistic Regression Model, and preference indices were used to analyze the data. The survey result revealed that most of the dairy cooperative members, i.e. 89 members (58.9%) were regular participants in decision making with respect to dairy marketing through their dairy cooperatives and involving in the dairy marketing functions of the dairy cooperatives simultaneously and 61 members (40.4%) participated some times in the same. Number of milking Cows owned, Position of a member in the cooperative, Training undergone in dairy marketing, Information seeking behavior, and Communication skills were found to be positively correlated with members’ marketing participation while Distance to the nearest Dairy Cooperative's milk collection centre was negatively correlated with the same. The parameter estimates of the ordinal logistic regression model has shown that Experience in Dairy Marketing vi , Milk Purchased through Cooperatives , Training Undergone in Dairy Marketing , and Perception about Cooperatives were among the significant factors affecting marketing participation of members in dairy cooperatives. Lack of market access for members’ milk especially during the fasting months, Lack of improved dairy cows, Lack of facilities (cooling, transportation, and storage), shortage and poor quality of animal feeds, Lack of credit to expand dairy activities, Poorly developed infrastructure like roads, water supply, and electric power, high cost of exotic breeds, high transaction costs and ever increasing in the price of animal feeds, members’ low attention towards dairy sector, and low commitment and negligence of Cooperative officials in discharging their responsibilities were among the main constraints perceived by members of dairy cooperatives and participants of FGD. In order to tackle the main constraints of dairy cooperatives so far identified and improve marketing participation of members in their dairy cooperatives, the dairy stakeholders (members, cooperatives, Government, and NGOs) should think of better market access for dairy products. In addition to this, there must be a national level dairy industry program like Operation Flood program of India so as to facilitate the enhancement of milk production in the country. The financial needs can be met from the sale of material assistance (primarily from the members of dairy cooperatives) received in the form of milk and milk products, and ploughing back the funds for the development activities.