Determinants of market participation decision and level of participation of dairy farmers in tigray, ethiopia: the case of raya

The study was undertaken with the objective of assessing determinants of dairy market participation and level of participation in terms of litres of milk in Tigray, Ethiopia.240 households were selected using simple random sampling method. Data were collected using formal survey. The data collected were analysed using both descriptive and Heckman two-step selection econometric models. The binary probit model results revealed that Age of the Household head, child age under six years old, family size, distance to the nearest market centre, transportation access and total litres produced per-day played a significant role in dairy market participation. Heckman second-step selection estimation indicated that level of education of the household head, access to extension services, Total litres produced per day, land ownership and non dairy participation significantly affected level of dairy market participation in litre of milk sales. The researchers recommend that government with its extension workers and other development institutions and partners should give due emphasis on capacity building, which increases dairy households bargaining power by getting information related price, demand and supply, through practical based training. Besides, facilitate the opening of dairy market outlets near to them, which minimise transaction costs and spoilage of milk, and insist them to integrate modern cross breed cows.