The Contribution of Milk Trade to the Livelihoods of Households: Evidence from Jigjiga City Somali Region, Ethiopia

Abstract

Although milk trade is essential for sustaining urban livelihoods in pastoral areas, its socio-economic contribution in the evolving urban centres is less examined. The state of milk trade in Jigjiga City, Somali Region, Ethiopia, takes place largely through the informal markets and also acts as an important source of income for various households, especially women. As a sector, the problem of the contribution of the milk trade on household livelihood in Jigjiga City is presented by studied which assesses the source of milk supply, income generation, and the problem and opportunity experienced in the trade. The present study has cross sectional survey design collected primary data from 150 households milk traders through structured questionnaire. Descriptive statistical tools were applied for the analysis of socio-demographic characteristics, trading practices, income levels and sectoral constraints. Results show that the milk trade in Jigjiga City is largely informal and dominated by females (71.3% who are females). On average, traders sell 16.51 liters of milk and earn a monthly mean income of 4,863 Ethiopian Birr, most of which goes to food, health care, education and reinvestment back into business. Most milk is sourced from local rural producers indicating weak value chain integration. The sector faces some challenges namely poor hygiene and quality control practices, insufficient transportation and storage facilities, price volatility and low cooperative membership. The study indicates that milk marketing is an important livelihood strategy adopted by urban households of Jigjiga City, mostly women. Strengthening the sector would require suitable training, improved infrastructure, enhanced institutional support, and promoting cooperative development to ensure market efficiency to benefit households.