THE ROLE OF DAIRY COOPERATIVES ON MARKET-ORIENTED SMALLHOLDERS’ DEVELOPMENT: THE CASE OF SIX DAIRY COOPERATIVES, IN DEBRE BIRHAN RIJOPOLITAN CITY ADMINISTRATIO

Abstract

The main purpose of this research was to examine the role of dairy cooperatives on the market-oriented smallholder development in the case of selected six dairy cooperatives in the Debre Berhan Rijopolitan City Administration. It investigated the influence of six dimensions of dairy cooperatives including the strength of dairy cooperatives, support from government and donors, market conditions, access to markets, access to credit, and training on market-oriented smallholders development. The study employed a mixed-methods approach, utilizing both quantitative and qualitative data collection techniques. The study population includes 349 members, from which 342 members were selected and given questionnaires out of which 342 correctly filled and returned questionnaires were used for the analysis purposes. The collected data were analyzed using SPSS version 25 and an overall analysis was performed using descriptive statistical analysis, Pearson correlation, and regression analysis. The descriptive statistics result showed that the member's perception regarding the strength of dairy cooperatives, support from government and donors, market conditions, access to markets, access to credit, and training were excellent or very good and their market-oriented smallholder's development level falls between often to very often. The result of correlation analysis showed that all six dimensions of dairy cooperatives were significantly and strongly related to their market-oriented smallholder development. Finally, the regression analysis indicated that access to credit dominantly influenced market-oriented smallholders' development followed by the strength of dairy cooperatives and then thirdly support from government and donors which were statistically significant at a 5% margin of error level. The researcher suggested that since the role of dairy cooperatives, including the strength of dairy cooperatives, support from government and donors, market conditions, access to markets, access to credit, and training, has a significant role in the market-oriented smallholder's development, it was recommended that Debre Berhan city administration management should try to promote collaboration between dairy cooperatives, government agencies, and other stakeholders to enhance market linkages and access to finance for smallholders. Future research could replicate and extend this study by adding other variables and samples from different members to offer a better understanding of the role of dairy cooperatives in fostering market-oriented smallholder development.