Abstract

Analysis of factors affecting milk value chain in smallholder dairy farmers was conducted in Ada’a district to strength the position of smallholder dairy farmers in milk value chain. Purposive and simple random sampling was employed as sampling techniques to select 100 smallholder dairy farmers 50 from urban area and 50 farmers from rural area to collect the required information. The data was collected through semi-structured questionnaire survey and analysed by using appropriate Statistical Package for the Social Sciences (SPSS) statistical software. Value chain mapping was used to show both qualitative and quality data collected during the filed study period.  Different factors affecting milk value chain in smallholder dairy farmers were identified. Among these factors reduction in volume of milk produced, high cost of different inputs (animal feeds, improved breeds), high barging power of trader, weak relationship of dairy cooperative with its members, long fasting period of Ethiopia Orthodox Church are identified as the major factors affecting milk value chain in smallholder dairy farmers. Out of the total interviewed farmers in the urban area about 50% of the respondents produced 10.5 L of milk per day per cow  from cross breed cow. On the other hand, smallholder dairy farmers live in the rural area only produce 2.6 L of milk per day per cow from local cow.  Hence, to improve the position of small holder dairy farmers  in milk value chain there should be strong relationship between dairy cooperative and smallholder farmers inorder to get economic benefit and to secure market access from dairy cooperative.

Key words: Factors affecting milk value chain, smallholder dairy farmers, animal feeds, dairy cooperative.