Determinants of urban consumers’ participation in informal vegetable markets: Evidence from Mahikeng, North West province, South Africa, and implications for policy

Olebogeng Marumo,Majola L Mabuza

doi:10.4102/sajems.v21i1.1743

Abstract

Background: This article seeks to examine the perceptions of urban dwellers towards participating in informal vegetable markets and determine the underlying factors shaping their decisions to participate in such markets. Aim and setting: The objectives were achieved by using cross-sectional data obtained from a random sample of 230 households from Mahikeng in the North West province of South Africa. Households’ perceptions were measured using numeric responses to several questions, which covered various issues related to vegetable marketing and consumption. Principal component analysis (PCA) was employed to draw dominant perceptions from the set of responses. Method: The probit model was used to determine factors influencing households’ decisions of whether or not to participate in informal vegetable markets. Explanatory variables included demographic and socio-economic factors as well as perception-related factors, which were proxied by the dominant principal components (PCs) obtained from the PCA results. Results: Two PCs were found dominant, representing safety and quality perceptions as well as the convenience and bargaining opportunities provided by informal traders. The probit regression results indicated that households’ preference for the informal vegetable market were positively influenced by age of household head, low level of education of adult household members, and convenience provided by informal markets. However, households’ wealth status and the perceptions on safety and quality of vegetables were found to have a significant negative influence on participation in the informal market. Conclusion: Given that informal vegetable trade forms an integral part of the urban economy by offering easy access to food in public spaces and connecting with the formal economy where informal traders source their supplies, the study concludes by highlighting policy interventions aimed at improving the quality of food traded in the informal sector.

Highlights

Consumers in urban areas generally access fruits and vegetables from two primary sources
The results indicate that households that are mostly concerned about food safety and quality are significantly less likely to participate in the informal vegetable market
The study sought to examine the perceptions of urban dwellers towards participating in informal vegetable markets and determine the underlying factors shaping their purchasing decisions

Summary

Introduction

Consumers in urban areas generally access fruits and vegetables from two primary sources. While urban agriculture could have a role to play as a source of food for urban dwellers (see for example Smart, Nel & Binns 2015), this may not be attainable due to land constraints and the existence of by-laws that prohibit certain agricultural activities in some municipalities (Frayne, Mccordic & Shilombeleni 2014; Prain & LeeSmith 2010). Given such limitations, urban dwellers find themselves with fewer options other than to access fruits and vegetables from the formal or informal sources of supply. This article seeks to examine the perceptions of urban dwellers towards participating in informal vegetable markets and determine the underlying factors shaping their decisions to participate in such markets

Objectives

Methods

Results

Conclusion