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

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