Determinants Of Market Participation Research Articles

Determinants of Market Participation among Smallholder Common Bean Farmers in Eswatini (Former Swaziland)

Determinants of Market Participation among Smallholder Common Bean Farmers in Eswatini (Former Swaziland)

Is Agriculture Still the Mainstay of Rural Economies? Insights from Ultra-Poor Households in North-central Nigeria

Aims: Nigeria may be facing aging and decline in the population engaged at food production nodes, posing huge challenge to agri-food systems with poverty at risk of deepening. Current trend in rural-urban migration and occupational mobility raises the open question of: “Is agriculture still a mainstay of rural economy, playing reliant roles in income and employment generation for the ultra-poor in Nigeria rurality?”. Understanding this is important because structural change to agricultural workforce in Nigeria has far-reaching implications on food security, welfare, and poverty. We sought to unfold the dynamics of agriculture as a business among ultra-poor rural households in North-Central Nigeria. First, we investigated engagements of ultra-poor rural households in agriculture. Secondly, we examined their level of commercialization. Lastly, we investigated determinants of ultra-poor’s market participation and its intensity. Study Design: This study used quantitative primary data collected in surveys and qualitative data generated from focus group discussions. Place and Duration of Study: The study was carried out in three states in North-central Nigeria viz: Kwara, Kogi, and Niger with data collected and analyzed between 2020-2022. Methodology: We randomly selected 1588 households (out of 60,427 households) from the “Single Register of the Ultra-poor” operationalized on a World-Bank-Assisted Conditional Cash Transfer (CCT) programme. We analysed data using descriptive statistics, Household Agricultural Commercialization Index, and Double-Hurdle Model. Results: Only about 18.7% of the ultra-poor households were primarily engaged in agriculture with the focus groups highlighting conflicts issues from indiscriminate grazing activities as primary reason for the abandonment. Determinants of market participation and intensification include: (-) household dependency ratio, distance to markets, (+) linkage to market agents, access to mechanization and input market, CCT-beneficiary status, and farm size (p<0.05). Conclusion: Involvement in primary agricultural production is declining in Nigeria. We recommend a boost to infrastructural development of the rurality to support agricultural transformation and attractiveness to the next wave of youths.

Determinants of market participation among smallholder teff farmers, empirical evidence from central Ethiopia

The livelihood of many Developing-world rural households depends on agricultural productivity. Commercializing smallholder agriculture is a crucial step in advancing the economic development of most developing nations, including Ethiopia. Although having a lot of production and marketability potential, Teff crop marketing hasn't received enough attention. Therefore, the primary objective of this study is to identify variables that affect smallholder Teff producer-farmer decisions regarding market participation as well as the amount of Teff sales in central Ethiopia. For this study, primary data were acquired from 355 Teff producer farm households who were chosen at random throughout the 2022/23 production seasons. Descriptive statistics and Probit and Tobit censored models were employed to analyze the data. The result of the survey indicates that out of a total of 355 Teff producers, 146 households are participants and 209 households are non-participants in Teff crop output. Extension contact, output, and membership in farmer organizations had an impact on households' participation decisions as well as their level of involvement. According to the study, it is necessary to address significant socioeconomic and resource issues to increase the level of market involvement of smallholder farmers in the studied area. Policy interferences that pursue improving these factors are very important to market participation.

Maize Market Chain Analysis and the Determinants of Market Participation in the Gamo and Gofa Zones of Southern Ethiopia

The majority of farmers are producing maize in the Gamo and Gofa zones and they are not benefiting from it due to the marketing problem. Thus, this study was intended to analyze the maize market chain and determinants of market participation in the selected maize-producing districts of the Gamo and Gofa zones. To achieve this objective, multistage sampling techniques were followed to randomly select 151 sample respondents. The data were analyzed by using descriptive statistics, marketing margins, and the double hurdle model. The survey results revealed that approximately 35.88% of the maize from the total maize produced by the sampled farmers was marketed in the study area. The result indicates that among the five identified maize marketing channels, the largest volume of maize passed through channel V (producers, urban collectors, and consumers). In the marketing of maize, traders set the price due to poor market linkage and the low bargaining power of producers. The model regression result indicates that among the hypothesized factors, family size, allocated land size for maize, and market information have a significant effect on the quantity of maize market supply. Based on this finding, strengthening extension services through training and accessing inputs are recommended. Furthermore, market linkage through the cooperative establishment and the availability of market information by respective bodies is suggested.

Determinants of market participation among smallholder farmers in Southwest Ethiopia: double-hurdle model approach

BackgroundAgricultural production by smallholder farm households is a means of livelihood for many rural households in developing economies, including Africa. Commercializing smallholder farmers in the agricultural sector is an indispensable path to boost economic growth and development of most developing countries, like Ethiopia. But, maize marketing has not been given due attention, which has potential production volume and marketability. Therefore, this study is designed to identify determinants of market participation decision and volume of supply among smallholder maize producer farmers in Southwest Ethiopia.MethodsData for this study were collected through cross‑sectional survey from maize producer farm households. The primary data were generated by household survey using a pre-tested structured questionnaire. A both purposive and random sampling technique was used to draw an appropriate sample of 546 maize producer households for this cross-sectional survey study. The data were analyzed using descriptive statistics and double-hurdle econometric model.ResultsThe result of the survey indicates that out of total 546 maize producers, 381 households are maize market participants and 165 households are non-participants. First hurdle model results show that nine variables—education level, farming experience, quantity of maize produced, cooperative membership, distance to nearest market, amount of credit received, off/non-farming income, number of oxen and perception about lagged price—significantly affect the market participation decision among maize producer farmers. The second hurdle result confirmed that seven variables—sex, family size, land allocated for maize, number of oxen, distance to nearest market, livestock holding and perception about lagged price—significantly affect the level of market participation by maize producer farmers.ConclusionThe findings of this study revealed that understanding the factors and its extent is very important for policy-making to address the problem of market participation decision and level of participation among smallholder farm households. Therefore, the study suggests that important resource and socio-economic factors must take into consideration to enhance the productivity and strength supportive institutions or infrastructural facilities in the study area to improve market participation decision and level of participation of smallholders.

Determinants of market participation and intensity of marketed surplus of smallholder chickpea producers in Este woreda

AbstractIn Ethiopia, chickpea is an important legume crop, particularly in Este district. It is a source of food and provides cash income for majority of smallholder farmers. To commercialize chickpea producers, selecting an appropriate market channel is important for participation. Hence, this study aimed to identifying factors affecting chickpea market participation and volume of marketed surplus of chickpea. Both primary and secondary sources of data were used. Moreover, both qualitative and quantitative data were collected from primary and secondary data sources. Primary data were collected directly from chickpea farmers through semistructured questionnaire. Focus group discussion and field observations were undertaken during primary data collection in the study area. Combination of data analysis methods like descriptive analysis and econometric models were employed. Heckman model result indicated that market participation decision was significantly affected by age, family size, lagged price, and distance to the market and market supply by frequency of extension contacts, quantity produced, transport ownership, and distance to the market. Based on the findings, government and concerned stakeholders need to focus more on enhancing accessibility of infrastructures facilities to promote marketing of chickpea and increase marketed surplus as well as expanding market access and improving yield through strengthening extension service in order to accelerate market chain development.

Determinants of Market Participation and Intensity of Participation of Teff Producers in West Arsi Zone of Oromia, Ethiopia

In Ethiopia, agricultural transformation is taken as a pathway to transition from a traditional subsistence orientation to market focused and commercialized farming system. In this regard, efforts to enhance smallholders’ participation in cereal market in general and teff in particular have made through boosting production . Nevertheless there is dearth of information on the teff of market participation and its intensity of participation in central Oromia particularly in Shashamane district. Therefore, this study was analyzed market participation and extent of teff market participation of farmers. The total 202 respondents were selected by using two stage sampling techniques and also interviewed. Double hurdle model was used to identify the determinants of market participation decisions and extent of market participation. The study showed that, educational level, livestock owned, land allocation for teff production, extension contact had positive significant effect on teff market participation decision, while sex of household head, family size, distance to nearest market had significant and negative effect. Intensity of market participation was affected positively and significantly by land allocated for teff, while family size and non-farm income significantly and negatively affect level of teff mark supply Therefore, focus on strengthening the technical, resource base, infrastructural and institutional capacity building of smallholder farmers are strategies that promote teff producers market participation and Intensity of participation. Keywords: Double hurdle model, Smallholder farmers, Teff market participation DOI: 10.7176/FSQM/101-04 Publication date: September 30 th 2020

Determinants of Market Participation of Enset (Ensete Ventricosum) producers: The case of Chena district, Kaffa zone, South western Ethiopia

In Ethiopia population of 79.3 million living in rural area being employed in agriculture [1], agriculture is the main driver...

Determinants of Market Participation among Smallholder Mango Producers in Assosa Zone of Benishangul Gumuz Region in Ethiopia

ABSTRACT Commercial transformation of smallholder agriculture entails production decisions based on market signals and significant participation in output markets. Consequently, this research attempts to contribute to the understanding of smallholder commercialization of mango production and analyzing factors determining the extent of smallholders’ participation in output market. The study was based on the cross-sectional data collected from 150 sample households which were randomly selected from 6 rural kebeles. Both descriptive statistics and econometric analysis were used to identify and analyze factors that determine the extent of smallholders’ participation in output market. Accordingly, out of the included 16 variables, 10 were found to significantly influence the quantity of mango sold. The Tobit truncated regression model results showed that the determinant of mango volume of sale includes resources ownership (land allocated for mango and land fragmentation), households assets ownership (number of productive mango trees and mango seedling availability), access to institutions (farmers club membership), social-network (critical support from non-relatives within the village and brokers), and economic (previous income from mango sale, Income from livestock sale, and mango market price) are the significant determinants of mango market participation. Given the current high market demand for Assosa mango, there is a room to enhance the level of mango commercialization, thereby enhancing mango market participation. To improve quantity of mango sold policies and development, endeavors must target at improving household resource endowment, creating market linkage and synergy among mango value-chain actors, and strengthening the existing mango nursery sites and infra-structure.

Determinants of Market Participation and Supply of Beef Cattle Value Chain in Konso District, Southern Nations, Nationalities and Peoples’ Region, Ethiopia

Beef cattle value addition linkage system has not yet been systematically studied and documented in the study area. This study is therefore aimed at analyzing the major determinants of market participation and supply of beef cattle value chain using both primary and secondary data. The primary data were collected from producers, middle men, traders and consumers. Whereas, the secondary data were collected from different Central Statistical Agencies and different government offices. The Heckman two stage sample selection model was employed and the result shows that market participation in beef cattle was positively affected by sex, age, household size, access to veterinary service, distance of feed source, beef cattle body condition and access to credit. On the other hand, quantity of the beef cattle supplied was affected negatively by access to veterinary service, distance from feed source, market distance and access to credit while household income affected it positively. Therefore, policy aiming at increasing access to modern inputs and market, developing and improving infrastructure and create awareness about how to use available resources intensively. Control of informal, illegal and expired animal drugs entrance in to the district by responsible agents or experts should be in place. Also, making strong visit, follow up and creation of awareness after credit provision should be done. Keywords : Value chain, Actors, Heckman two stage model, Beef cattle DOI : 10.7176/FSQM/83-01

Determinants of market participation and marketing channels in smallholder groundnut farming: A case of Mudzi district, Zimbabwe

This paper investigates the factors that are associated with market participation and choice of marketing channels by smallholder groundnut farmers in a semi-arid district of Zimbabwe. It contributes to the existing body of knowledge on groundnuts, especially the marketing aspect. Data was derived from a literature review and a cross-sectional household baseline survey. We applied simple logistic regression framework to determine the factors associated with market participation and choice of marketing channel. Our study findings show that land size, access to transport information, distance to the nearest town, age and education of the household head are among the important factors influencing the decision to participate or not to participate in selling of groundnuts. Choice of a particular marketing channel is influenced by distance to the nearest town, education level of the farmer, access to remittances, and market information. In conclusion. these findings suggest that an adjustment in each of these significant variables can influence the probability of market participation and an informed choice of marketing channels. In terms of policy, this implies that technological changes, infrastructural improvements, agricultural institutional developments, and capacity building of smallholder farmers can help to improve farmers’ market participation and informed market channel choice.

Market participation and marketing channel preferences by small scale sorghum farmers in semi-arid Zimbabwe

ABSTRACTA fundamental concern of agricultural development is the efficient marketing of goods and services. This paper examines the determinants of market participation and marketing channel choice decisions by small scale sorghum farmers using a case comprising 380 households from five Wards in the mid Zambezi Valley of Zimbabwe. Mixed data collection approaches including a questionnaire, observations and focus group discussions were used. Secondary data triangulated and validated farmers’ responses. A double hurdle based on probit and multinomial logit regression models was applied to the two decision making stages. Ninety six percent of the sampled farmers participated in some market as influenced by payment time, number of buyers in the market, age of principal decision maker and distance to market. Three marketing channels were isolated as local, traders and a combination. The local marketing channel dominates due to its convenience and relatively lower transaction costs. Using the local market option as the referent category, weighted average market price of sorghum, number of buyers in the market, distance to the market, dependency ratio and household income are the most robust determinants of marketing channel selection. Sorghum marketing channel options are limited for small scale farmers in Zimbabwe. Strengthening cooperative based and extension anchored marketing can reduce the risks associated with relating to external traders who usually exploit farmers for price, payment time and quality requirements. Decentralisation of the sorghum markets and promotion of value addition activities in the sorghum value chain is likely to reduce transaction costs and increase the market size.

Determinants of Market Participation in Nigerian Small- Scale Fishery Sector: Evidence from Niger Delta Region

This study was designed to determine the factors that influence fisher farmers to participate in the marketing of their produce in the Niger Delta region of Nigeria. A total of 120 fish farmers were randomly selected for the study. The data gathered through the use of a structured questionnaire were analyzed using the logistic regression model. The probability of participating in fish marketing was significantly determined by household size, distant to the nearest marketing channel, price of the commodity and sex of the fish farmer/marketer. Market infrastructure development, provision of marketing incentives to women and development of an institutionalized marketing information service are recommended.

Determinants of market participation in non-timber forest products among the rural households of rain forest in Ondo State, Nigeria

Market participation by the rural household on Non-Timber forest products has been found to be important as a means of breaking from the traditional semi-subsistence to fully commercialised production. This study examined the determinants of market participation in Non Timber Forest Products (NTFP)s among the rural households in rain forest zone of Ondo state, Nigeria. Data were collected with the aid of well structured questionnaire from one hundred and twenty-two households using multistage sampling technique. The data were analyzed using descriptive statistics, budgetary analysis, probit and tobit regressions analysis. The result showed that household size, income from other occupation, labour cost and durable input cost significantly affected the decision and level of participation in extraction and marketing of NTFPs in the area of study. It was also revealed from the study that kolanut and bitter kola were more profitable and efficient out of the seven NTFPs examined. It is recommended that forest management strategies and intervention design should be aimed at those people who settle inside or at the edge of the forest, because they are in a better position to continuously assess the existing situation of the forest and forest resources.Keywords: Traditional semi-subsistence, Fully commercialised, Forest management, Budgetary analysis, Profitable

Determinants of Market Participation and Financial Profitability of Smallholder Dairy Farming: The Case of Bako Tibe, West Showa, Ethiopia

Determinants of Market Participation and Financial Profitability of Smallholder Dairy Farming: The Case of Bako Tibe, West Showa, Ethiopia

What Determines the Choice of Milk Marketing Channel of Dairy Farmers: Evidence from Kashmir Region?

The study was carried out in Pulwama district of Kashmir Valley with a total sample of 100 dairy farmers. An attempt is made to investigate the choice of market outlets preferred by the dairy farmers for disposing milk and also to examine the determinants of the milk outlet channels with the help of multinomial logit model. Three distinct types of milk marketing outlets were available for the farmers in the district, viz., cooperatives, private processing plants, and traditional players. Results revealed that the important determinants of market participation in alternative milk disposal outlets were the distance to milk collection centers, provision of output services, procurement price of milk and social participation score of the dairy farmer.

Determinants of market participation by indigenous poultry farmers: a case study in Anuradhapura district in Sri Lanka

Backyard poultry farming provides multiple benefits to rural farm families in Sri Lanka. Indigenous chicken or the village chicken is the main component in backyard poultry rearing system. However, the indigenous chicken population is gradually being reduced in the country, mainly with the introduction of exotic breeds. In addition, market share of indigenous chicken is diminishing over the years. Identification of the characteristics of the farmers selling indigenous chicken and the factors that affect the market participation by indigenous chicken farmers will be useful in conservation and sustainable utilization of indigenous chicken. Hence, the objectives of this study were to identify the factors that determine poultry market participation and sales of indigenous chicken farmers. Those determinants were evaluated by using Heckman two stage econometric model. The study was carried out in Thirappane Veterinary Division (covering four selected villages) in Anuradhapura district. Data were collected by a household survey using a structured questionnaire from 104 households rearing indigenous chicken. The first step of the Heckman two stage procedure results showed that households’ decision to participate in the poultry market was significantly (p Tropical Agricultural Research Vol. 24 (4): 347-361 (2013)

Strengthening Market Linkages of Farm Households in Developing Countries

AbstractFarm households in developing countries generally allocate a major portion of their resources to staple food production, mainly for self‐consumption. Hence, many of them are more or less delinked from the market. It is well recognized, however, that market participation is crucial for farm households to ensure a flow of cash income, leading to poverty alleviation and improved livelihoods. Thus, it is meaningful to understand what factors affect farm households' decision to sell food crops, which is important for strengthening their linkages with markets. The empirical literature on impacts of market linkages has seldom focused on the determinants of market participation. Using rice farm households in Bangladesh and applying a double‐hurdle model, this article demonstrates that the provision of general education and the development of agricultural infrastructure such as irrigation facilities can strengthen the market linkages of farm households by enhancing their marketable surplus through increased production. By contrast, rainfall beyond the optimum level, drought spells, and flood incidences can weaken market linkages by reducing their marketable surplus through decreased production. Specific policies such as investment in general education are drawn up based on the findings.

Determinants of Market Participation among Small-Scale Pineapple Farmers in Kericho County, Kenya

Pineapple ( Ananas comosus ) is one of the major cash crops grown in Kericho County, Kenya specifically Bureti district. In the study area, pineapples have been perceived to have high market value, resulting in tradeoffs with staple food. Despite pineapples market value, its market participation has not been studied and quantified. Therefore, this paper aims to determine the factors influencing market participation and its extent. A simple random sampling approach was used to select a sample of 150 small-scale pineapple farmers and primary data was collected using a semi-structured questionnaires. The data was analyzed using the descriptive statistics and Heckman two-stage model. The results showed that age, gender, education level and pineapple yields significantly influenced the decision to participate in pineapple marketing. Further, gender, price information, group marketing, marketing experience, vehicle ownership and marketing under contract significantly influenced the extent of market participation. Based on the findings policy implication was drawn for improving the household income in the study area. Key words: Heckman two-stage model, market participation, small-scale pineapple farmers

Determinants of Market Participation among Maize Producers in Oyo State, Nigeria

Smallholder farmers constitute the largest share of farm households in Nigeria and many of them are poor. A way out of poverty for them is to address market related problems. In this paper, the market options available to these farmers, as well as market related factors that are problematic were investigated. Primary data were collected from 100 maize farmers in Saki Agricultural Zone of Oyo State, Nigeria. Seventy five maize farmers participate in the market while 25 farmers produce only for subsistence. The farmers are well experienced and cultivate about 5.6 hectares of land. About 90% do not have access to market while 64% do not have access to good roads. The study identified 4 market options and the most patronized was the farm gate market option. The censored tobit result, market price show that, member of a producer group, farm size, educational and total maize produced, road condition, primary occupation and transaction costs significantly affect farmers’ market participation. Policy interventions that seek to improve these factors are very important to market participation.