Determinants of market channel choice utilised by maize and sunflower farmers in the North West province, South Africa

Abstract

Determinants of market channel choice are the contributing issues that influence production and sales. Despite their significance, yet adequate research has not been carried out on it, particularly in the North West Province, South Africa. Consequently, this paper assessed the socio-economic profile and the determinants of the choices of market channel utilized by Maize and Sunflower farmers in the North West Province, South Africa. A semi-structured questionnaire was used to interview 163 respondents categorized according to those who were financially assisted (n = 101) and those who were not (n = 62). The choice of Market channels utilized by respondents was then analyzed using a Multinomial Logit Regression Model with Non-market participation as a reference category. Overall, the finding demonstrated that most respondents (65%) were utilizing informal markets, followed by non-market participation and formal markets with 20% and 15% respectively. The findings emanated from the Multinomial Logit Regression analyses revealed that factors such as age, marital status, gender, credit access, education, and farming experience significantly influenced the choice of the market channel among maize and sunflowers farmers in the study area. Policies aimed at improving the farmers’ access to formal markets should be informed by these factors.