Market participation among smallholder dairy farmers in Oyo State, Nigeria

Abstract

Despite the involvement of government in dairy production, smallholder dairy farmers in Nigeria are still faced with remarkable marketing related problems which affect the extent of their participation in the agricultural production system. In this study, the determinants of market participation among smallholder farmers in Iseyin local government area of Oyo state were examined. The objectives of the study were to assess the market channel options, participation level and factors/constraints affecting dairy farmers’ participation. A multistage sampling procedure was used to select 132 respondents. Data were analyzed using descriptive statistics and Heckman two-stage regression model. The age of dairy farming household was 58±4 years, 96.21% were males and 93.18% were married with an average household size of 8 years and dairy experience of 37±5 years. While household size (β = 1.16), land size (β = 0.71), educational status (β = -0.47) and contact with extension agents (β = -2.11) influenced market participation of the dairy farmers, herd size (β = 5.50) and dairy farming experience (β = 1.66) influenced the extent of participation. Milk quality, fluctuating prices of milk, market risk and poor motivation from government were the most pressing constraints faced by these farmers. An evaluation of existing educational policy on farmers needs to be embarked upon while the capacity of extension services should be improved.