Abstract
This study assesses the extent to which market access determine commercialisation among the smallholder dairy farmers in Zimbabwe. A total of 225 smallholder dairy farming households, randomly selected from 11 milk-producing cooperatives in Zimbabwe were analysed using descriptive statistics and the Tobit, regression model. The empirical results indicated that the proportion of farmers’ milk delivered to the market was significantly affected by the mode of transport used to carry the milk from the farmer’s homes to the market. The results show that farmers using more efficient though costly transport mechanisms such as a car, tractor, or motorcycle were more likely to get their milk to the market not only on time but also in good condition. Farmers using primitive methods of carrying the milk to the market such as walking on foot, wheelbarrow or bicycle were often only able to deliver once per day though commercial dairy cows are regularly milked more than once per day. The study stresses the need to find locally relevant milk transport mechanisms such as the corporate hiring of vehicles motorcycles or tractors by farmers residing close to each other to promote efficiency and profitability among the smallholder dairy farmers. Keywords: market access, commercialisation, Tobit regression model, smallholder dairy farming, Zimbabwe, market information DOI : 10.7176/JESD/10-8-14 Publication date : April 30 th 2019
Highlights
One of the most significant current discussions in the study of agricultural and rural development is the role of markets in the commercialisation of smallholder agriculture
Several studies have revealed that market participation by smallholder farmers is a pathway towards commercialisation and efficiency which leads to poverty reduction, livelihoods improvement, and economic development in the rural areas (Timmer, 1997; Hanyani-Mlambo, 2000; Ayele et al, 2003; Shepherd, 2007; Sibanda, 2008; Arias, Hallam, Krivinos & Morrison, 2013; Poole, 2017)
All the farmers reached in this study were drawn from milk producer groups which are linked to Milk Collection Centres (MCCs)
Summary
One of the most significant current discussions in the study of agricultural and rural development is the role of markets in the commercialisation of smallholder agriculture. A considerable amount of literature has been published on the challenges of smallholder farmer market participation in developing countries Majority of these for example (Pingali & Rosegrant, 1995; Leavy & Poulton, 2006; Hazell et al, 2007; Arias, Hallam, Krivinos, & Morrison, 2013; Mtimet & Pica-ciamarra, 2016) have identified high transaction costs, information deficiencies and weak support institutions as the significant constraints to enhanced market participation by smallholder farmers in developing countries. Market information helps farmers to make crucial farming decisions such as what to produce, where to sell and how much to expect in return for their investments (Tadesse & Bahiigwa, 2015)
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