The role of credit in the uptake of improved dairy technologies in Ethiopia

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In Ethiopia smallholder livestock producers have adopted components of improved dairy technologies but the intensity of adoption remains low. It is hypothesized that credit-related constraints limit the ability of many smallholder farmers to make investments in crossbred cows and/or to purchase complementary inputs associated with improved dairy technologies. This paper assesses how credit influences farmers' investment and their production decisions. Farmers are classified as credit constrained or non-credit-constrained. The results showed that credit has had little influence on variables such as input use or farmers' marketing decisions.

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dairy industry, technology, credit, feed resources, livestock numbers, milk production, milk yield, policies, expenditure, income

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