Smallholders’ Access to Agricultural Markets and Technology, Role of Agricultural Cooperatives and Contracts in Africa: Evidence from Dairy farmers in Ethiopia

Abstract

Smallholders in Ethiopia are constrained in their access to markets, input and technology. This paper investigates the role of cooperatives and contracts in promoting smallholders’ access to markets and technology with particular reference to smallholder dairy farmers. A rural household survey was administered for randomly selected dairy farmers in Northern Ethiopia. The descriptive statistics reveal that the distance to market and the distance to rural development offices where technology and extension services are provided, differ for cooperative and contracting dairy farmers. Poor transport infrastructure and lower household wealth drive dairy farmers to cooperative engagement. The result suggests that cooperatives and contracts promote market access, credit, small-scale dairy processing technology and that cooperatives specifically attract resource-poor households. Policy makers and development partners are recommended to strengthen cooperative societies and contract arrangements.