Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda
Although cooperatives play a critical role in reducing transaction costs and enhancing farmers’ adoption of better farming practices, little is known on the effects of dairy cooperative membership on the choice of milk marketing channels. This paper employs an endogenous switching probit model to es...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Elsevier
2023
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/131084 |
| _version_ | 1855529175785406464 |
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| author | Habiyaremye, Naphtal Mtimet, Nadhem Ouma, Emily A. Obare, G.A. |
| author_browse | Habiyaremye, Naphtal Mtimet, Nadhem Obare, G.A. Ouma, Emily A. |
| author_facet | Habiyaremye, Naphtal Mtimet, Nadhem Ouma, Emily A. Obare, G.A. |
| author_sort | Habiyaremye, Naphtal |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Although cooperatives play a critical role in reducing transaction costs and enhancing farmers’ adoption of better farming practices, little is known on the effects of dairy cooperative membership on the choice of milk marketing channels. This paper employs an endogenous switching probit model to estimate the determinants of farmers’ choice of milk marketing channels while controlling for the potential selection bias of cooperative membership. We find that cooperative membership has positive and significant effects on the choice of both MCCs and milk traders as marketing channels along with a negative effect on the choice of other buyers (direct consumers and restaurants). The varying effect of cooperative membership on choice of different marketing channels holds also for non-members had they been cooperative members. Furthermore, we find that the selling price positively affects farmers’ choice of MCCs, but the longer distance to MCCs may make farmers (including cooperative members) to choose milk traders who offer lower prices than MCCs. Since the MCCs are managed by dairy cooperatives and they are the only marketing channels that conduct basic milk quality tests while offering higher prices to farmers, we recommend policies that support easy access to MCCs and enhance dairy cooperatives’ governance. This will facilitate dairy farmers’ access to a better marketing channel while meeting an already growing consumer demand for products safety and quality in the food industry. |
| format | Journal Article |
| id | CGSpace131084 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1310842025-10-26T13:01:40Z Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda Habiyaremye, Naphtal Mtimet, Nadhem Ouma, Emily A. Obare, G.A. milk marketing sustainable development Although cooperatives play a critical role in reducing transaction costs and enhancing farmers’ adoption of better farming practices, little is known on the effects of dairy cooperative membership on the choice of milk marketing channels. This paper employs an endogenous switching probit model to estimate the determinants of farmers’ choice of milk marketing channels while controlling for the potential selection bias of cooperative membership. We find that cooperative membership has positive and significant effects on the choice of both MCCs and milk traders as marketing channels along with a negative effect on the choice of other buyers (direct consumers and restaurants). The varying effect of cooperative membership on choice of different marketing channels holds also for non-members had they been cooperative members. Furthermore, we find that the selling price positively affects farmers’ choice of MCCs, but the longer distance to MCCs may make farmers (including cooperative members) to choose milk traders who offer lower prices than MCCs. Since the MCCs are managed by dairy cooperatives and they are the only marketing channels that conduct basic milk quality tests while offering higher prices to farmers, we recommend policies that support easy access to MCCs and enhance dairy cooperatives’ governance. This will facilitate dairy farmers’ access to a better marketing channel while meeting an already growing consumer demand for products safety and quality in the food industry. 2023-07 2023-07-11T08:38:16Z 2023-07-11T08:38:16Z Journal Article https://hdl.handle.net/10568/131084 en Open Access Elsevier Habiyaremye, N., Mtimet, N., Ouma, E.A. and Obare, G.A. 2023. Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda. Food Policy 118: 102499. |
| spellingShingle | milk marketing sustainable development Habiyaremye, Naphtal Mtimet, Nadhem Ouma, Emily A. Obare, G.A. Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda |
| title | Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda |
| title_full | Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda |
| title_fullStr | Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda |
| title_full_unstemmed | Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda |
| title_short | Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda |
| title_sort | cooperative membership effects on farmers choice of milk marketing channels in rwanda |
| topic | milk marketing sustainable development |
| url | https://hdl.handle.net/10568/131084 |
| work_keys_str_mv | AT habiyaremyenaphtal cooperativemembershipeffectsonfarmerschoiceofmilkmarketingchannelsinrwanda AT mtimetnadhem cooperativemembershipeffectsonfarmerschoiceofmilkmarketingchannelsinrwanda AT oumaemilya cooperativemembershipeffectsonfarmerschoiceofmilkmarketingchannelsinrwanda AT obarega cooperativemembershipeffectsonfarmerschoiceofmilkmarketingchannelsinrwanda |