Determinants of Milk Market Participation among Small Dairy Farmers in Kyrgyzstan

In Kyrgyzstan, milk production serves as a crucial financial resource for rural households, providing daily sales and regular income. Despite this, not all cow owners participate in the milk market. This research uses a two-tiered Cragg model to explore the factors influencing both market participation and milk sales volume among 250 households in Chui region. Findings show that cow numbers and access to local pastures significantly affect both market participation and milk sales. Roughage provision and milk prices also have positive impacts, while cropland use and concentrate feed do not significantly influence market participation. The use of milking machinery and legal farm status notably increases milk sales volume, whereas credit constraints and cooperative membership have no significant effect. This research recommends policies to improve pasture access, legal recognition of farms, and market conditions to enhance market integration and sustainability in Kyrgyzstan’s dairy sector.

Keywords: Dairy value chains, Kyrgyzstan, milk marketing, Cragg model

JEL codes: Q12; Q13.

Suggested citation: Niiazaliev, B., Robinson, S. & Petrick, M. (2025). Determinants of Milk Market Participation among Small Dairy Farmers in Kyrgyzstan. University of Central Asia