Abstract
Since the launch of the Land Redistribution for Agricultural Development (LRAD) programme by the government, several small-scale farmers have slowly integrated into the mainstream markets. The main objective of the study was to evaluate and analyse the factors affecting participation in mainstream markets by the small-scale livestock farmers in the Central Karoo, Western Cape Province of South Africa. A sample of 36 small-scale farmer projects was purposively selected from the study area, and the data was collected using a semi-structured questionnaire. Thereafter a multinomial regression model was applied to the primary data. The results show that age, farming experience, number of beneficiaries, employment status and farmer training have a strong positive effect on the likelihood of small-scale livestock farmers marketing their sheep to the mainstream markets such as abattoirs and auctions. Furthermore, distance to the nearest market, access to market infrastructure and access to credit have a negative impact on the likelihood of those participating in the formal markets. The study suggests that the government should address the challenges faced by the small-scale farmers through interventions and improving access to markets. Keywords: Factors, LRAD, small-scale, mainstream markets, Central Karoo, multinomial model
Highlights
The livestock sub-sector is an important agricultural stronghold that contributes immensely to improving the livelihoods of the rural poor in South Africa
Given the desire showed by the South African government in addressing the plight of small-scale farmers, this paper aims to contribute to the land reform programme discourse by providing advice on how best the government may help the small-scale farmers
All the projects are beneficiaries of the Land Redistribution for Agricultural Development Programme (LRAD) programme, the results showed a bias to males
Summary
Land reform farmers still find it increasingly difficult to access the mainstream markets, gain access to credit, and realise good returns for their products as most of them still sell their livestock through informal markets (Musemwa et al, 2007). In most cases, they receive lower prices for their livestock through these marketing channels. Small-scale farmers struggle to access markets due to a range of factors such as poor infrastructure, lack of information, insufficient expertise, and inability to conclude contractual agreements (Cheteni, 2017; Cheteni, Mushunje &Taruvinga, 2014) These problems result in their exclusion from the mainstream markets (Makhura, 2001). It is critical that a study advises the South African government on how best to integrate such small-scale farmers into the main economy and possibly increase their contribution to the gross domestic product (GDP)
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