Factors that influence the dairy farmers’ choice of milk marketing channel

Abstract

The general objective of this study was to understand the factors that influence the farmers’ choice between the informal and formal milk marketing channels in Kyangyenyi Sub County, Sheema District. The study was carried out in in Kyangyenyi Sub County, Sheema District in south western Uganda. The district is located in the cattle corridor of Uganda and experiences two different seasons every year. The study employed a cross-sectional research design to examine the factors that influence the farmers’ choice of marketing channel in Kyangyenyi Sub County, Sheema District. Primary data were collected using structured questionnaires involving interviews with dairy farmers. The primary data was collected through the use of oral interviews and questionnaires that was distributed among the study population. After collecting data from the field, it was arranged and put in order, adding tables, figures and other statistical requirements necessitated in trying to answer the objectives. Data was edited, coded for completeness, and processed using computer software called the Statistical Package for Social Scientists (SPSS). Study results revealed that the dairy farmers that use the informal milk marketing channel in Kyangyenyi Sub County, Sheema District made average profits of 450,000Ugshs per month and on the other hand, the dairy farmers that use the formal milk marketing channel made average profits of 930,000Ugshs per month. This therefore implies that the formal milk marketing channel is more profitable than the informal marketing channel. Furthermore, Chisquare

results revealed that access to credit and sex of dairy farmer significantly affect the choice of milk marketing channel/outlet among small holder dairy farmers. On the other hand, Chi-square results also showed that educational level and marital status of dairy farmer do not significantly affect the choice of milk marketing channel/outlet among small holder dairy farmers. Last but not least, the most common factor inhibiting increased use of the formal milk marketing channel in Kyangyenyi Sub County, Sheema District is no/zero transport cost. This study recommends that an effective credit scheme with low interest should be established so that when dairy farmers in Kyangyenyi Sub-County are in need of cash they can easily source loans from there while waiting for payment from the buyers.