Hierarchical Analysis of Factors Affecting the Improvement of Milk Quality and Quantity Based on the Diverse loops of value chain: Case of Kermanshah province

Abstract

Milk has a fundamental role in diversifying villagers’ incomes and improving their quality of life, as well as society’s health and food security assurance as a whole. However, the qualitative and quantitative standards of milk do not meet marketplace expectations, and there are many regulations about it. Accordingly, this study aimed to identify and prioritize factors affecting the improvement of milk quality and quantity in Kermanshah province by implementing a sequential-exploratory research design. The statistical population in the qualitative phase included 11 experts selected using the snowball sampling method. The statistical population in the quantitative phase included managers of 10 active units of dairy industries in Kermanshah province and owners of 104 dairy cattle units, who were selected as a whole (N= 114). The data collection tool was a researcher-made questionnaire. Data were analyzed using Excel, SPSS, and Expert-Choice. Findings showed that the factors affecting the value chain of milk can be identified using four general criteria: initial activities, policymaking issues, economic issues, and infrastructure. Ultimately, we identified different factors in each criterion that were essential for improving milk quality and quantity.

Keywords: Milk Quality and Quantity, Value Chain, Hierarchical Analysis, Kermanshah.



Extended Abstract

Introduction

Achieving sustainable development will not be possible without improving villagers’ livelihoods and reducing poverty in rural areas. Accordingly, many initiatives have been implemented by governments to improve the livelihoods of rural residents. However, evidence indicates the failure of these programs in achieving their aims, including improving rural residents’ livelihoods. Diversifying rural residents’ livelihood resources according to local capabilities is an efficient strategy for encountering poverty and achieving sustainable development goals in rural areas. Due to its strong adaptability to the climatic conditions prevalent in Iran, livestock raising has consistently garnered significant attention from rural communities. Consequently, the villagers have opted to prioritize this endeavor as a prime strategy for enhancing the diversification of their sources of livelihoods. Nevertheless, in the past few years, various factors have led to the failure of the milk value chain in terms of quantity and quality, resulting in detrimental consequences for the livelihoods of livestock farmers. Therefore, this study aims to determine these factors by employing hierarchical analysis on various loops of the value chain.



Methodology

Various methods have been developed in the context of MCDM (Chan et al., 2001; Marzouk et al., 2013; Roy, 1990), among which the analytic hierarchy process (AHP) presented by Saaty (1980) has been widely used by researchers and decision-makers (Colak et al., 2020; Lyu et al., 2020; Solangi et al., 2021). AHP is a structured survey method for analyzing and deciding on complex phenomena, which is based on mathematical and psychological models that ultimately determine the final priorities to achieve a goal. Indeed, this method can convert qualitative factors into quantitative ones and objectify them by weight assignment. AHP consists of two main phases: qualitative design and semi-quantitative design. These two consecutive phases improve the consistency of the judgments and facilitate calculating the weights according to criteria and sub-criteria. Given these characteristics, we used AHP in three phases to determine the most important factors affecting milk quality and quantity improvement based on the diverse loops of the value chain in Kermanshah province.



Results and discussion

Findings showed that the factors affecting the value chain of milk can be identified using four general criteria: initial activities, policymaking issues, economic issues, and infrastructure. Sensitivity analysis based on performance showed that the most important options affecting the value chain of milk included the low price of milk compared to costs (0.075), lack of guaranteed purchase (0.069), lack of incentive policies (0.065), the high price of animal feed (0.062), the high rate of loan interest (0.062), and the lack of industries related to milk and dairy products (0.062).

Another comprehensive measure that impacts both the quantitative and qualitative enhancement of milk is the implementation of policies. Policies, in this context, refer to the regulations established by the government that influence milk production. For instance, the absence of incentive policies for milk production and high interest rates imposed on loans provided to livestock farmers not only diminish the motivation of producers to increase their output but also dampen the enthusiasm of individuals interested in entering this industry. Another issue that hampers livestock farmers from accessing cash to meet their production needs is the existence of cumbersome regulations when receiving funds from banks. As a result, ranchers are forced to sell many livestock to obtain the necessary inputs, resulting in a decrease in the amount of milk produced by these animal husbandry and disturbances in overall milk production. Implementing measures such as establishing milk collection stations in rural areas to reduce transportation costs, promoting policies such as tax exemptions or granting export licenses to the top producers in each province, decreasing bank interest rates, facilitating the granting of loans by removing obstacles such as the requirement for guarantors, developing localized markets, and reducing livestock insurance costs can all significantly contribute to enhancing both the quantity and quality of milk.



Conclusion

Livestock proprietors have empirically discovered that the implementation of scientific principles and the employment of knowledgeable professionals hold a distinct position in ensuring the well-being of animals and augmenting production productivity. However, ranchers contend that the steep costs or payment associated with such personnel renders it impracticable for livestock owners to engage in such services. Various approaches exist to surmount these challenges encountered by livestock farmers, one of the foremost being the fortification of internal collective endeavors and collaboration among livestock farmers to procure the proficient human resources they require. In essence, contingent upon production capacity and the number of animals, a particular number of livestock farmers can enlist indispensable specialists from the pool of graduates of the Faculty of Agriculture and Veterinary Medicine at Razi University.



Acknowledgments

The research team would like to thank all the contributors to this study, especially Kermanshah Provincial Agricultural Management, for funding the implementation costs.



Conflict of interest

The authors declare no conflicts of interest.