Determinants of Milk Supply to Formal Milk Markets among Dairy Farmers in Oyo and Kwara States, Nigeria

Abstract

The Nigeria dairy sector is the largest producer of cow milk in West Africa. Despite its size, the current milk production does not meet the annual market demand of 1.45 billion litres. This study was therefore designed to examine the determinants of milk supply by local dairy farmers to formal milk market in Kwara and Oyo States, Nigeria. The specific objectives of the study were to; examine the major factors influencing milk supply to the milk collection centers in the study area and to identify the constraints of milk supply to the formal market by the small scale milk farmers in the study area. Purposive and random sampling techniques were employed in selecting 238 respondents. The research instrument used was the interview schedule. The analytical tools employed were descriptive statistics, multiple regression analysis and likert type scale. The study showed that the determinants of milk supply to the milk collection centers by small-scale dairy farmers were distance to the collection centers, number of lactating cows, number of cattle, price of milk at the collection centers, years of dairy farming experience and access to market information. While lack of suitable breeds, cost of production, inadequate water supply, lack of milking parlor and inadequate credit, were the constraints facing the small-scale dairy farmers. The study therefore recommends that increase in use of modern production and processing technologies and genetic improvement of the local breeds should be encouraged for increased supply of milk to the formal milk markets.