Abstract:
This study was conducted with the objective of evaluating camel milk value chain in Degahbour Woreda, Jarar Zone, Somali Regional State of Ethiopia. Two stage random sampling techniques were used to collect primary data from 167 camel milk producers and 31 traders using pre-tested structured questionnaire. Focus group discussions, key informants interview and personal observation were also employed to collect data. To analyze the collected data, descriptive statistics, SCP approach and econometrics model were used. Heckman selection model was employed to identify factors affecting market participation decision and volume of camel milk sales. The study showed that input suppliers, producers, kebele milk collectors, wholesalers, retailers, restaurants/cafes and end consumers were the main actors in the value chain. The buyers’ concentration ratios of the three selected kebele markets were 59%, 63% and 87% indicating a strong oligopsonistic market structure at kebele level. Regarding the market performance, consumer prices were relatively high in the main market as small quantity of milk was reaching to the market indicating loss of consumer welfare. The marketing margins increased with the length of the vertical chain and the associated costs which in turn reduced producer’s share of the price paid by the end users. The results of the Heckman two stage model showed that among the explanatory variables used in the selection model, five variables were found to be statistically significant. Income from non-camel milk and distance to nearest market negatively influenced camel milk market participation decision while education of the household head, membership in milk selling group and access to information had a positive and significant impact on market participation decision of the camel milk producers. The result of the outcome model revealed that access to information and quantity of camel milk produced were found to have positive and significant effect on volume of camel milk sales; while, distance to market center, number of milking camels owned and inverse Mill's ratio (LAMBDA) had a significant negative impact on the volume of camel milk sales in the study area. Based on the findings, the study recommends that government should facilitate the establishment of market oriented camel milk producers while encouraging voluntary partial sedenterization of producers with their milking camels near the markets and main roads. Intensifying investment in milk processing technology, increasing access to information, improving horizontal and vertical linkages of value chain actors and creating synergy among the value chain supporters are also suggested.