Analysis of Camel Milk Market Chain in Borana and West Guji Zones, Oromia Regional State, Ethiopia

In arid and semiarid areas, camel milk plays a significant role in improving the livelihoods of the pastoralists. Nowadays, the interest in camel milk production and marketing has been growing, associated with increased demand, rapid urbanization, and livelihood diversification. Despite the production potential, in Ethiopia, the camel milk dairy sector does not receive sufficient attention in the national research and development agenda. This study aimed to analyze the camel milk market chain in selected districts of the Borana and West Guji zones, southern Ethiopia. Using a multistage sampling procedure, the study selected 235 producers, 107 consumers, 92 traders, and 47 transporters. Results revealed that the average camel ownership per household was 16.7 ± 5.88, with average daily milk yields of 5.92 ± 0.89 L during the wet season and 4.72 ± 0.83 L during the dry season. On average, households produced 11.95 L of milk per day; out of production, 29.6% was consumed and 62.95% was sold. Four distinct milk market channels were identified. Producers, traders, retailers, consumers, transporters, and service providers were the key market chain actors. The regression model analysis result indicated that family size, milk production and consumption levels, religion, educational status, milk price, and access to market information significantly influenced the volume of milk supplied to the market (<i>p</i> < 0.01). Feed and water scarcity, disease, inadequate market infrastructure, and insufficient extension services were the key production challenges identified. To enhance production and market profitability, governmental and nongovernmental organizations should focus on improving feed and water, developing market infrastructure, facilitating market linkages, and expanding veterinary services.