The study was carried out to analyze determinants of producer's participation decision and level of participation in milk marketing in East Gojjam Zone. Survey was employed to get primary data using questionnaire as a main tool from 204 respondents from Dejen and Machakel Woredas'. Besides descriptive and inferential statistics, Heckman two step selection econometric model was employed for data analysis. Sex of a household head, age ,land holding size, number of milking cows owned by a household, membership to milk marketing cooperatives ,distance of milk marketing center from producers residence and income obtained from livestock and products sale were statistically significant determinants of decision to participate in milk marketing. Moreover, significant relationship is revealed between producer's level of milk market participation and the variables such as number of cross breed cows owned by the household, daily milk output, current selling price of milk, membership to milk marketing cooperatives and daily home milk consumption. Hence, nearby milk collection centers has to be established and small vehicles has to be offered for groups of women whom are farthest from the milk market center are among the recommendations suggested by this study.

Keywords: Heckman selection model, Milk, Market participation, level of milk market supply