This short lactation length was a result of poor nutrition as most farmers in the chain depended on use of high quantities concentrates and maize Stover as major source of feeds. At that time, there was an emergence of new institutional arrangements in milk collection, processing and marketing, which included hawkers, brokers’ self-help groups, neighbors and business establishments like hotels (Karanja, 2003).
Smallholder dairy farmers can enhance their growth and profitability by being involved in production, distribution and marketing coordination and governance at various levels in the food value chain thereby integrating vertically and horizontally. Vertical integration occurs …show more content…
The study by Ketema, et. al. MoARD,( 2007, pp 149), indicated that in Ethiopia, fresh milk is distributed through the informal and formal marketing systems. The informal market involves direct delivery of fresh milk by producers to consumers in the immediate neighborhood and sales to itinerant traders or individuals in nearby towns. Milk is transported to towns on foot, on donkey and horseback or by public transport, and commands a higher price there than when sold in the neighborhood, to cover transport costs. Dairy production is insufficient to meet demand in most parts of Ethiopia: consumers report that low availability of dairy products is a major reason for not consuming dairy products (Asfaw, et. al. 2011, pp 32-43). A study by Negassa (2009, pp 48-56) in the Arsi zone shows that about 72, 62, 43, and 38 percent of consumers surveyed indicated that their current monthly levels of consumption of fluid milk, edible butter, cheese, and cosmetic butter (used for hair care) respectively are insufficient. This study will therefore conduct to determine factors affecting production and marketing distribution channel of dairy products in jimma town small scale cooperative associations and private producers managing distribution channel such as poor collaboration, lack of market access that many farmers face, policy decision on assurance of quality and standards, product marketing, among others is taken in the absence of vital information on how they affect the entire value chain, aggravated environmental problems agricultural growth ,accelerations declining terms