Effects of milk bulking groups on small-scare milk producers’ income in Thyolo and Blantyre Districts.

Abstract

Small-scale dairy farmers in Malawi face persistent challenges in marketing their milk and improving their incomes. To address these issues, Malawi has promoted Milk Bulking Groups (MBGs), which provide facilities for bulk handling, storage, and cooling of milk before processors collect it. This study investigated the effect of MBG participation on the incomes of small-scale dairy farmers, the study aimed to(ii) Evaluate the efforts of milk bulking groups towards improving dairy farmers’ income (ii)Evaluate the factors that influence dairy farmers’ decisions to join milk-bulking groups (iii)Assess the determinants of income among milk producers(iv) the study was conducted in Thyolo and Blantyre districts by comparing the incomes of members and non-members. The study employed a cross-sectional, mixed-methods approach with multi-stage, stratified, and simple random sampling. Data were gathered from 258 dairy farmers through surveys and from 8 key informants via qualitative interviews. Quantitative data were analysed using descriptive statistics, t-tests, and endogenous switching regression, while qualitative data underwent content analysis. Results show that MBG members notably benefited from advisory services, credit access, and extension support (p < 0.001), whereas non-members had greater access to bull services (p < 0.001). Key factors influencing MBG participation included herd size, household size, training, and access to extension services (p < 0.005). Determinants of income for MBG members included herd size, transportation mode, and extension services (e.g., each additional cow was associated with a β ≈ 0.4 increase in log annual income, p < 0.001; access to extension was β ≈ 0.2, p < 0.001). Participation in MBGs significantly increased annual milk income and production: non members would earn about MK 259,873 more and produce 68 litres more milk per year if they joined an MBG (p < 0.01). The study concludes that MBG participation enhances income, productivity, and access to agricultural services for small-scale dairy farmers. Recommendations focus on improving financial support, expanding agricultural services, promoting training, and increasing awareness of MBG benefits.