VPP Integration and Market Participation: Beyond Optimization

In many sub-Saharan African nations, commercializing smallholder agriculture has recently been seen as a strategy for attaining equitable growth and eliminating poverty in a sustainable manner. Despite the distinction made between market participation and market orientation, their respective impacts on farm income have not been given enough attention in the literature. In this paper, their respective determinants are analysed and each of them is linked to smallholder farmers’ income. The survey was conducted in and around four irrigation schemes in KwaZulu-Natal. Using a sample of 332 farmers, the study estimated the output participation index/market orientation index and employed the two-limit Tobit and OLS regression models. The findings show that socioeconomic, institutional and production factors influence market orientation and participation differently. In addition, market participation is more important in explaining farmers’ income compared to market orientation. Moreover, farmers had a higher rate of market participation index (83%) while their market orientation index was very low (38%). Market orientation is, therefore, not a pre-condition for market participation. In smallholder agriculture, market participation is a function, mainly, of marketed surplus. These realities are valid for smallholder agriculture and in sharp contrast with commercial agriculture. Engaging smallholder farmers more in market participation rather than market orientation would be a better strategy to improve their access to markets and eventually enhance their income. Market orientation will then become the unintended outcome of continuous engagement of farmers with the market.

This paper reports on a study conducted to describe family nurse practitioners' perceptions towards and participation in pharmaceutical marketing and to explore the relationships among related variables. The pharmaceutical industry's intense global marketing strategies have resulted in widespread concern in healthcare professionals and professional groups, sectors of the public in many countries, and in the World Health Organization. Research on healthcare providers' participation in pharmaceutical marketing indicates that these relationships are conflicts of interests and compromise healthcare providers' prescribing practices and trust. Nursing, as a discipline, appears to be slow to address the impact of pharmaceutical marketing on nursing practice. Questionnaires about perceptions and participation in pharmaceutical marketing were completed by a random sample of 84 licensed family nurse practitioners in the United States of America in 2007. Family nurse practitioners viewed pharmaceutical company marketing uncritically as educational and beneficial. They also perceived other providers but not themselves as influenced by pharmaceutical marketing. The findings supported those found in previous research with nurses and physicians. Lack of education, participation in marketing and psychological and social responses may impede family nurse practitioners' ability to respond critically and appropriately to marketing strategies and the conflict of interest it creates.

PurposeThis paper aims to propose an instrument for measuring social commerce among entrepreneurs from the USA, Mexico and Colombia.Design/methodology/approachThe methodological design was quantitative, explanatory, observational and transversal, where a sample of 1,644 entrepreneurs from the USA (n = 525), Mexico (n = 608) and Colombia (n = 510) was obtained. For the validation and reliability of the instruments, a structural equation model (SEM) was developed for the three studies carried out. Regarding the goodness and adjustment indices of the SEM in the three countries, they turned out to be acceptable.FindingsThrough the results obtained in the three studies carried out, it has been verified that the instrument of social commerce in its two factors: Marketing and Market Participation, has sufficient validity and statistical reliability. Likewise, it has been verified that both the manifest variables and the latent variables of the construct show a significant relationship between the three studies carried out in different populations.Research limitations/implicationsThe findings obtained in the presented study contribute to entrepreneurs, leaders and managers of the business sector to improve the entrepreneurial project through marketing and market participation of the product and service, as well as the business unit that seeks to position itself in the market. Likewise, it helps entrepreneurs to understand analytically and systematically the constructs that social commerce is made up of, which will help entrepreneurial leaders reduce or control their risk when considering social commerce in their entrepreneurship, achieving the success of the entrepreneurial project through its positioning in the market considering marketing and market participation as main factors of social commerce.Originality/valueThe findings are relevant and of great value to the literature because at present there is not enough research that is focused on the variables analysed related to social commerce in the contexts of the USA, Mexico and Colombia. The relevance of the present scale in comparison to others proposed by the literature is that the proposed scale is focused on entrepreneurs who seek to be more successful through the positioning of their business unit, product or service in the market through the market participation. It is achieved through marketing strategies. Another contribution provided by the present study lies in the methodological robustness of the scale and its analysis, comparing it with studies in three leading entrepreneurship countries in Latin America, comparing the validity and reliability as well as the goodness of fit indices of the proposed model in each of the studies. They were significant and very similar, so the proposed scale is of great value and usefulness in the literature.

Policies for commercial transformation of smallholder agriculture are often aimed at promoting household market participation. The literature on agricultural transformation also makes little distinction between market orientation and market participation. This paper analyzes the determinants of market orientation and market participation in Ethiopia separately and examines if market orientation translates into market participation. Results show that subsistence requirements, market access, and production factors affect market orientation, while market access and volume of production affect market participation. Results also show that market orientation translates strongly into market participation. The key implication of this study is that policy interventions aimed at promoting commercial transformation of subsistence agriculture should follow two-pronged approach: improving market orientation of smallholders at production level, and facilitation of market entry and participation of households in output markets. Focusing on either may not be as effective in achieving the transformation.

The literature on commercial transformation of smallholders makes little distinction between market orientation and market participation. This paper analyzes the determinants of market orientation and market participation in Ethiopia separately and examines if market orientation translates into market participation. Results show that subsistence requirements, market access, and production factors affect market orientation, while market access and volume of production affect market participation. Results also show that market orientation translates strongly into market participation. The key implication of this study is that interventions aimed at promoting commercial transformation of subsistence agriculture should follow two-pronged approach: improving market orientation of smallholders at production level, and facilitation of market entry and participation of households in output markets. Focusing on either may not be as effective in achieving the transformation. Keywords: commercialization, smallholders, market orientation, market participation.

Produce to eat or sell: Panel data structural equation modeling of market participation and food dietary diversity in Zambia

The relationship between market participation and moral values is the object of a long-lasting debate in economics, yet field evidence is mainly based on cross-cultural studies. We conduct rule-breaking experiments in 13 villages across Greenland (N = 543), where stark contrasts in market participation within villages allow us to examine the relationship between market participation and moral decision-making, holding village-level factors constant. First, we document a robust positive association between market participation and moral behaviour towards anonymous others. Second, market-integrated participants display universalism in moral decision-making, whereas non-market participants make more moral decisions towards co-villagers. A battery of robustness tests confirms that the behavioural differences between market and non-market participants are not driven by socioeconomic variables, childhood background, cultural identities, kinship structure, global connectedness and exposure to religious and political institutions.

PurposeThe existing literature on linking growers directly with the market mostly overlooks the case of smallholders. They grow commercial–perishable crops and have to rely on the efficacy of the marketing system. The present paper intends to fill this void.Design/methodology/approachThe paper studies the performance of two local markets among 216 pineapple producers and 50 traders using the structure–conduct–performance framework. Following which the authors attempt to unravel the determinants of growers' direct participation in the market and the impact of such involvement on the farm income using the Heckman two-stage treatment effect model.FindingsThe study analysis shows that the likelihood of growers’ direct participation in markets, found oligopolistic, increases with education, price information and family labor unit, while decreases with the growers' age, distance from market and the footfall of intermediaries at the farm gate. The second stage of the model has established a positive impact of participation on farm income.Research limitations/implicationsThe small sample size could restrict generalization. The authors used only operating efficiency as an indicator of the performance of the marketing system due to the unavailability of district-level time series data on pineapple pricing.Originality/valueThis study shows that local food markets are oligopolistic. Growers fetch very less share in consumers' price and become vulnerable to food insecurity. The study highlights the determinants of growers' direct participation in the local market and the impact of such involvement on farm income.

The goal of carbon peak and carbon neutralization has accelerated the pace of building a high percentage of renewable energy power systems. However, the uncertainty and volatility of renewable energy bring many challenges to the stable operation of electricity market. In the new context of power market reform, it is necessary to establish a better trading mechanism and price subsidy mechanism for renewable energy participation in the market. This paper analyzes the impact of renewable energy participation in electricity market on market operation, market equilibrium and bidding strategies of market players. Then, we propose the potential means to cope with the market risk of renewable energy, compare the market mechanisms and development policies of various countries, and summarize relevant studies on renewable energy participation in electricity market in countries around the world. Finally, the development of a high percentage of renewable energy participation in the electricity market of China is summarized and prospected.

ABSTRACT: The smallholders' transformation from the passive nature of farming using crude implements into active and rewarding market participation remains problematic. Over the years, smallholder farming and market have been associated with trails of many middlemen, farm gate sales, and consumption. However, there is a lack of information on the recent changes that have occurred due to government intervention, globalization, and the fourth industrial revolution in Nigeria and many other developing countries. Hence, this study investigates the smallholders' market participation, level of participation, determinants of the smallholders' market participation, driving force behind the smallholder farming, tractor-use, and tractor-use impact on the smallholders' market participation. A multistage sampling technique was applied to select 280 smallholder farmers for the research. Descriptive statistics and propensity score matching (PMS) were used to analyze the data. The findings revealed that the smallholders' market participation level is low. Most smallholders (62 percent) could not sell up to 50 percent of their products. The study showed that smallholders participate in the market at different output sales levels, with most tractor-users participating in the market at a high output sales level. In contrast, many non-tractor users participated at low output sales, indicating poor market participation. Most smallholders sell their produce at the farm gate to date. Smallholder tractor use remains low. Only 28 percent of the total respondents used tractors. The PSM analysis revealed that tractor-use significantly impacts the smallholders' market participants alongside the education level, area cultivated, and access to information on farming activities such as market information. The smallholders' involvement in another occupation negatively impacts their market participation. The year(s) of farming experience did not positively impact the smallholder's market participation, which could be due to poor adoption of technology. The farming and market participation seems unchanged, with most individuals, not collective smallholders, not frequently producing for the market. Their market participation has not experienced meaningful progress despite income generation forming the major motive behind their farming. It is true that some smallholders mainly produce for consumption, but the sole purpose of ensuring households' food security is the least reason many households embark on farming. Positive transformation of the smallholder into active and mainstream market participation is possible if technology, including tractor, and suitable approaches are adopted, as evidenced by this research among smallholders who used tractors. It was recommended that the smallholders' tractor-use issue be prioritized in all policies addressing the smallholders' market participation. Smallholders should not be viewed as farmers who only went into farming for consumption.

Chapter 20 - Production Specialization and Market Participation of Smallholder Agricultural Households in Developing Countries

Multipurpose cooperatives are often seen as key institutional intervention in enhancing farmers’ access to markets, as one form of institution that fulfill exchange and co-ordination functions in an economy. This study Presented multipurpose cooperatives member participation in agricultural input marketing and associated factors at kersa woreda, Oromia Regional State, Ethiopia. Two-stage sampling procedures were used in this study. Primary data were collected through key informant interview, focus group discussions and personal observations while secondary data were collected through review of related literatures and different reports. Binary logit model was used to analyze quantitative data. Twelve independent variables were hypothesized and five of them positively influencing agricultural input marketing of multipurpose cooperative member’s participation. The result showed that 66.36% of cooperative members were participants in agricultural input marketing where as 33.64% were non-participants. The binary logit model result showed that age, education, landholding, change in standard of living due to joining of cooperative, membership in other cooperatives other than Multipurpose Cooperatives has influence agricultural input marketing of multipurpose cooperative member positively and significantly while the other two variables determined negatively and significantly. In conclusion, multipurpose cooperative members who are nearer to their office tend to more participate in marketing activity of agricultural input marketing than those who are far from their office. Therefore, the government has to facilitate road accessibility and District Cooperative promotion Agency has to give attention to address and support those who have no proximity to their office.

PurposeThere is much evidence in the literature showing the benefits of input market participation on farmers’ welfare. The same is true for participation in marketing. However, there are very few studies on the expected benefit of input market participation and marketing. This study fills this gap by examining the issue in the Senegalese context for food and cash crops.Design/methodology/approachThe authors estimate a multinomial endogenous switching regression using a highly detailed 2017 agricultural survey in Senegal. They first identify factors that shape farmers’ decision to participate in the input market and marketing and then assess the impact of market participation choices on farmers’ profits.FindingsThe results show that the most profitable market participation regime depends on the crop under consideration. For food crops, joint participation in markets maximizes profit per hectare, while for groundnuts, the main cash crop in Senegal, participation in the input market is not necessary to maximize farm profit.Research limitations/implicationsUsing panel data would improve the quality of estimations (time-variant effects) and help to consider the role of risk in output and input markets.Originality/valueThis paper helps to characterize different profiles of farmers based on their market participation and crop choices and provide policymakers with recommendations for maximizing farmers’ profit.

ABSTRACTIntegrating small‐scale farmers into large markets is crucial for agricultural modernization. To this end, China—as a ‘large country, small farmer’—has fostered socialized agricultural services (SASs). Although some studies have examined specific service components of SASs, a systematic analysis is missing and the mechanisms of SAS's effects on farmers' market participation has not been clarified. To address this gap, we use data from the 2020 China Rural Revitalization Survey to construct a motivation–opportunity–ability (MOA) framework for farmers' market participation behavior, uniquely introducing SASs to assess their impact on small farmers' market participation. This comprehensively examines farmers' market and deep‐market participation, as measured by their sales decisions and channel selections, respectively, and addresses model endogeneity using the conditional mixed process and Heckman model. The findings reveal that SASs promote farmers' market and deep‐market participation, augmenting the probability of participation by 39.6% and 14.2%, respectively. Mechanisms analysis reveals that this positive impact is brought about by increasing farmers' motivation to produce marketable products, providing farmers with direct access to heavily capitalized buyers, and increasing farmers' market participation ability. The heterogeneity analyses demonstrates that SASs improve the market participation of rice and corn farmers, having the greatest impact on the former. The findings provide policy guidelines concerning how to promote farmers' market participation in China, and provide a “Chinese experience” for other developing countries.

This study explores how maize farmers’ market participation influences their subjective well-being, utilizing the 2020 China Rural Revitalization Survey data collected by the Chinese Academy of Social Science. Three variables, including market participation (a binary variable), sales ratio (a continuous variable), and sales frequency (a categorical variable), are utilized to measure maize farmers’ market participation patterns comprehensively By estimating a conditional mixed process model, this study finds that maize farmers’ market participation significantly improves their subjective well-being captured by happiness, life satisfaction, and confidence about the future by 0.672, 0.925, and 1.125 points, respectively. Maize income mediates the positive association between farmers’ market participation and their subjective well-being. The disaggregated analyses reveal that farmers at the household income tertiles 2 and 3 obtain a higher level of happiness, life satisfaction, and confidence about the future. Meanwhile, market participation significantly improves life satisfaction and confidence about the future of farmers experiencing natural disasters, while it increases the happiness of farmers who do not have such experiences. Farmers’ market participation significantly improves their objective well-being regarding pork consumption and milk consumption by 68 g/capita/day and 56 g/capita/day, respectively. Further analysis confirms that market participation intensity, reflected by sales ratio and frequency, significantly increases farmers’ subjective well-being. These findings highlight that the government should devote more efforts to inciting maize farmers to participate in market transactions to increase farmers’ incomes and subjective well-being.