The status and constraints of primary dairy cooperatives in Selale dairy cooperative union, Oromia special zone, Ethiopia

Abstract

The study was conducted in the selected 6 Primary Dairy Cooperatives of Selale Dairy Cooperative Union (SDCU) aimed with to study the status and roles of primary dairy cooperatives in service delivery, market linkages and their major constraints. SDCU was purposively selected because of its large number of primary dairy cooperatives and the high potential of dairy production in the area. The primary dairy cooperatives were stratified into three strata: (high milk supplier- 400 liters), medium milk suppliers (200-400 liters) and lower milk suppliers (<200 liters) based on their daily milk supply potential. In proportion to the size of primary dairy cooperatives, one (1) primary dairy cooperative from higher suppliers, one (1) from medium suppliers and four (4) primary dairy cooperatives from lower suppliers were randomly selected. Accordingly, 115 dairy producers were selected by probability proportionate to size of members of the selected cooperatives. The required data were collected by using semi-structured questionnaire from the respondents and supported by focused group discussion and key informants interview. All the data collected were analyzed using SPSS (Version 20). About 86.43% of the milk produced by the respondents was delivered to the prevailing market from which the major market share belongs to the Dairy Cooperative Union; because it allows them to get reliable milk markets with fair price including fasting periods. Absence of reliable market for processed milk, lack of milk collection center around the members, inability of the dairy cooperative union to collect all the milk supplied by members were among the constraints of milk marketing in the SDCU. SDCU was provided service delivery such as concentrate feed supply, training and advisory service, marketing, artificial insemination and veterinary services for the members. However, it was constrained by inadequate provision of dairy inputs, lack of enough materials like refrigerators to preserve milk and milk products; lack of commitment and abuse of finance by the management; weak linkage of the dairy cooperatives with service providing actors. It could be concluded that the service provision is substandard and also there are poor linkages among the dairy cooperatives and other actors in the milk value chain. Though the overall financial status, number of primary dairy cooperatives and number of members of the dairy cooperatives are increasing, the profit, the trust of members on the management and sense of ownership were declining. Thus, there is an urgent need for the dairy cooperative union management staffs to ensure transparency and develop sense of ownership among members by encouraging them in planning and execution, strengthen the linkages among dairy cooperatives and with different actors involved in milk value chain by organizing stakeholders’ forum.