An analysis of institutional and technical factors influencing agricultural marketing amongst smallholder farmers in the Kat River Valley, Eastern Cape Province, South Africa

Abstract

Smallholder farmers in the Kat River Valley do not use output markets effectively due to a number of factors. The technical and institutional factors that demoralise them from marketing are identified in this paper. It is asserted that an explicit analysis in the relationship between technology, institutions and markets may be useful in developing livelihood improving programs. Therefore, by identifying such factors, the paper seeks to find out ways of improving market participation among the smallholders, hence, livelihood development. The multinomial regression model was used to investigate the factors that influence marketing choices among smallholder and emerging farmers in the area under study. Empirical results show that market information, expertise on grades and standards, contractual agreements, social capital, market infrastructure, group participation and tradition significantly influence household marketing behaviour.