Abstract

This study was intended to examine dairy producers market participation decision and volume of milk supply. Cross-sectional data was obtained from 220 sample households and analyzed using Heckman selection model. Heckman first-stage model result shows that age of household head, access to market information, access to extension service, contract agreement and accessibility of animal feed was positively determined the dairy producers milk sale decision. Heckman second-stage model result shows that access to market information, market price, accessibility of animal feed and family size was positively determined the volume of milk supply whereas religion determined negatively. This implies that dairy producers capacity building, improving information delivery system and strengthen extension service are an optional solutions to improve production and market supply decision.

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