Abstract
One of the very numerous decisions that smallholder farmers face world wide relates to market participation in agricultural markets and, consequently choosing the appropriate marketing channel for their agricultural produce. Such decisions impact on their incomes and subsequently on their welfare. The objective of this study was to determine how a multi-stakeholder innovation platform approach influences pigeon pea (Cajanus Cajan L.) marketing decisions in smallholder farming in Malawi. The study relied on primary data collected from 115 households in Balaka District in Malawi during an impact survey done in November 2014. Results confirmed that the multi-stakeholder innovation platform approach improves decision making in pigeon pea marketing. Variables such as access to transport services and market information, improved extension, capacity building through farmer training, adoption of conservation agriculture and membership to farmer groups influenced marketing decisions.Keywords: Marketing channel choice, market participation, pigeon pea
Highlights
Participation in lucrative markets can be an effective route for rural smallholder farmers to move out of abject poverty (IFAD, 2003; Omiti, 2009)
We modelled the decision to sell pigeon pea, and choice of market in a simple logistic regression and multinomial logit regression respectively; and we report odds ratios for the market participation model and coefficients for the marketing channel made
The demography of the household plays an important role in household farm operations including marketing decisions
Summary
Participation in lucrative markets can be an effective route for rural smallholder farmers to move out of abject poverty (IFAD, 2003; Omiti, 2009). The trade theory postulates that if households participate in markets by selling surplus of what they produce on a comparative advantage, they are set to benefit from the direct welfare gains, and from opportunities that emerge from economies of large-scale production (Barrett, 2008). They will benefit from technological change effects; improved flow of ideas and from trade-based interactions (Barrett, 2008). Choice of a marketing channel is considered one of the key ingredients to successful marketing of both agricultural and non-agricultural products (Tsourgiannisa, 2008) This is so because different channels are characterised by different benefits (profitability) and costs. Marketing channel choice decisions are very important especially in a liberalised market economy like that of Malawi where there are alternative marketing channels and, open to seller’s choice
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