Influencing Market Participation Research Articles

Factors Affecting Chickpea Market Chain: The Case of Dembia District, North Gondar Zone, Ethiopia

Chickpea is the 4th largest foreign currency earning crop of Ethiopia following coffee, sesame and haricot bean and the major cash crop grown in the study area mainly for market. This study was aimed to examine analysis of chickpea market chain in Dembia district. For analysis both primary and secondary data were employed. The primary data were collected from 150 chickpea producers and 30 traders by individual interview schedule based on two stage random sampling. Heckman two-stage model was used to identify factors affecting market participation and volume of sale of chickpea. As the result indicates, the age of household head and non-farm income have affected market participation decision and volume of sale negatively and significantly while education level of the household head, access to market information, farming experience, land allocated to chickpea and lagged market price have been influenced market participation and volume of supply of chickpea positively and significantly. Based on the findings, the government and other policy makers have to increase marketing information and ability of chickpea farmers through opportunities like mass media, extension service, and other means of capacity building. Keywords : Heckman Two-step model, Market Participation, Volume of Sale of Chickpea, and Dembia, Ethiopia. DOI: 10.7176/JMCR/66-02 Publication date: March 31 st 2020

Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa

The study explored the contribution of information and communication technology (ICT)-based information sources to market participation among smallholder livestock farmers. Use of ICTs is considered paramount for providing smallholder farmers with required market information, and also to reduce market asymmetries. A double hurdle regression was utilized to analyze data collected from 150 smallholder livestock farmers in the study area. The results show that while use of ICT-based market information sources significantly influenced market participation, the effect of using ICT-based information sources on the intensity of market participation was not significant. Other variables shown to influence both market participation and the intensity of market participation were age, additional income and membership of farmer cooperatives. This suggests the need to consider other associated factors in the application and design of interventions that utilize ICT-based information sources to achieve market engagement among smallholders.

Factors Influencing Market Participation by Smallholder Farmers in Masvingo and Manicaland Provinces, Zimbabwe

Markets play a critical role in economic development and strengthening market participation by smallholder farmers in both input and output markets is critical for the development of smallholder agriculture in Zimbabwe. This study analyzes the determinants of output markets participation in Masvingo and Manicaland provinces using data from a random sample 479 smallholder farmers. Market participation is very low with only 19% of the sample farmers participating in output markets. Results of the binary logistic regression show that the variables that have a positive and significant effect on outputs market participation are age of the head of household, the size of the household, the level of education of the head of household, the household agricultural income, the degree of farm specialization, access to irrigation, access to draft power, on demand extension service, quality of extension support, distance of the farm from the nearest rural business centre and tenure. Gender of the head of household, the level of education of household members, farming experience, the block training approach, the level of dependency, the farmer to farmer extension approach and household members with off-farm employment significantly and negatively influence market participation. In order to enhance smallholder farmers’ participation in output markets, the study recommends that policy intervention efforts must primarily focus on expanding access to irrigation and draft power as well as improving the quality of extension support services for the farmers.

Market Participation of Smallholder Pigeon Pea Farmers in Makueni County, Kenya

This study sought to assess the factors that influence market participation of the smallholder pigeon pea farmers in Makueni County, Kenya. A stratified sampling procedure was used to obtain information from 198 respondents and the information was captured through the use of a structured questionnaire. Results show that 70% of the farmers in the study participated in the market as sellers. A Tobit Model was used to analyse the socio economic and institutional factors affecting participation. The results revealed that gender of household head, household size, off-farm income, price, membership to a farmer’s organization and access to market information influenced market participation. This study recommends first, the intensified use of improved pigeon pea cultivar to increase the marketable surplus. Secondly, strengthening and transformation of the existing farmer organisations into marketing groups so as to enhance market linkages to more lucrative markets and reduce transaction costs. Thirdly, investment in telecommunication platforms so as to ensure timely market information such as price, quantities and varieties required are disseminated to the farmers e.g. through mobile phones. Keywords: market participation, smallholder farmers, pigeon pea DOI : 10.7176/JESD/10-16-12 Publication date : August 31 st 2019

Determinants of Smallholder teff Producer Farmers Market Participation in Merhabete District, Amhara Region, Ethiopia

Teff production contributes significantly to the economy in terms of cash income and food security, especially for the smallholder teff producers in rural areas of Ethiopia. This study examined Smallholder Teff producer Farmers Market Participation in Merhabete district with the objectives of identifying factors influencing teff market participation and intensity of participation. Cross sectional data was used for the study. A two stage sampling procedure was used to draw 150 sample producers from four teff producer kebeles and semi-structured questionnaires were used to collect data. Secondary data sources were also used for the study. Double hurdle model was used to identify factors influencing market participation decision and intensity of participation in teff market. The result of the first hurdle confirmed that participation decision was positively affected by frequency of extension contact, land allocated for teff, productivity of teff and teff production experience; whereas family size, and non-farm income influenced teff market participation decision negatively. The second hurdle indicated that intensity of teff market participation positively and significantly affected by land allocated for teff, productivity of teff, teff production experience and numbers of equine owned. The study indicated government and other stakeholders need to strengthen market oriented teff production, agricultural input or service delivery, increasing frequency of extension contacts, land intensification, family planning, and involvement in facilitating transportation services.

SOCIOECONOMIC FACTORS INFLUENCING MARKET PARTICIPATION OF HORTICULTURAL SMALLHOLDER FARMERS IN THE ALFRED NZO DISTRICT, EASTERN CAPE, SOUTH AFRICA

The purpose of this paper is to identify the socioeco- nomic factors influencing market participation of horticultural smallholder farmers in the Alfred Nzo district. Cross-sectional data was collected by the Agricultural Research Council and the Department of Rural Development and Land Reform in Janu- ary 2014 from 48 horticultural smallholder farmers in Alfred Nzo district using a structured questionnaire. Binomial logistic regression analysis was used to analyze the data. The results showed that market participation was influenced by access to market information, type of road and availability of transport to market. The empirical results will be useful for horticulture farmers, marketers and policy makers in developing efficient production and marketing strategies. The government and pri- vate sector should establish a model specific to the actual needs of smallholder farmers of the Alfred Nzo district, which should include improvement of roads to farming sites and a well- coordinated and efficient transporting system which must be designed specifically for smallholder farmers in the district.

Analysis of the Factors Influencing Market Participation among Smallholder Rice Farmers in Magway Region, Central Dry Zone of Myanmar

Smallholder farmers face numerous constraints that restrict their access to markets and prevent them from taking advantage of market opportunities. This research aimed to examine the factors affecting the market participation of smallholder farmers and find ways to improve the income and livelihood of smallholder farmers, focusing on Myothit Township in Magway Region, Central Dry Zone of Myanmar. For the primary data, we surveyed 150 smallholder rice farmers which were selected using a random sampling technique. Using the Heckman two-stage selection model, we analyzed the factors influencing smallholder rice farmers’ decisions regarding participation in the agricultural market. This study revealed that the decision to participate in the rice market was dependent on different factors such as the household head age, education status, household size, total produce of rice, price of rice, household income, ownership of livestock, membership of farmer organization, access to roads, distance to market, access to extension services, and market information. The results of this study have implications as to what factors need to be addressed to encourage smallholder rice farmers to participate in the market. We suggest that Myanmar government and policymakers need to establish balanced policies for small-scale farmers and manage them in an appropriate way so that agricultural development can be induced, contributing to poverty reduction, food security, and economic development.

Socio-Economic Factors Influencing Small-Scale Farmers’ Market Participation: Case of Rice Producers in Dano

This paper explores the key factors influencing market participation decisions among smallholder lowland rice growers. Data were collected through purposive sampling technique. A total of 127 rice growers, from 16 lowlands (developed and traditional lowlands), was selected. Descriptive statistics and the probit regression model were used to analyse the data. The statistical analysis revealed significant differences in yields between developed and traditional lowlands rice plots (“lowland development effect”). The regression results showed that farmers’ behaviours were not gender neutral; male producers were more likely to take part in the market as compared to their female counterparts, implying a “gender effect”. With respect to the effect of membership in farmers’ organization, the results indicate that farmers’ involvement in an organization, was in general negatively associated to their market participation decisions. However, farmers from lowlands with functional rice producers’ organizations were more likely to sell their products in the market. Interestingly, this study also highlighted that lowland rice producers’ ability to generate a marketable surplus (at least 20 kg/person/year) positively influence their market participation decision. As hypothesized, the results revealed that farmers who have access to potential buyers of the output (secured market outlets) were less likely to produce rice for self-consumption.

English

In Ethiopia, cereal production and marketing are the means of livelihood for millions of households. Teff is the major cash crop grown in the study area mainly for market. However, the teff marketing has not been given due attention, which has potential production volume and marketability. The objective of this paper is to identify the factors affecting market participation and intensity of teff marketed surplus. A two stage random sampling procedure was used and a total of 154 smallholder farmers were randomly and proportionally selected to collect both primary and secondary data. Heckman two-stage model was used. The first stage model result indicated that lagged price, family size and credit access were factors that influenced market participation and second stage model result indicated that amount of teff produced, family size, land size, livestock and age were factors that determined the extent of teff marketed. Providing adequate size of credit, improving production of teff which enhances its productivity and relying on intensive cultivation are strategies to increase farmers' participation in teff marketing. Key words: Heckman two-stage model, teff, market participation and intensity of participation. &nbsp

Analysis of Factors Influencing Market Participation of Smallholder Bean Farmers in Nyanza District of Southern Province, Rwanda

Rwanda remains trading very low volume of beans inside the country and across borders thereby becoming unable to meet national and international demands. This is exacerbated by low market participation of bean growers. This study assessed factors that influence market participation and extent of participation among bean growers in Nyanza district. Probit model was used to analyze the factors influencing market participation among bean growers while the extent of market participation was analyzed using Tobit model. The probit results indicated that factors that positively and significantly influenced the probability of farmers to participate in output market were bean quantity produced, market experience, and access to credit while factors that negatively and significantly influenced market participation decisions included distance to nearest market, age and access to off-farm activities. Tobit results revealed that factors that were found to have positive statistical significant impact on the extent of market participation were bean quantity produced, marketing experience and selling price. Contrary to earlier expectation, land size was found to have negative significant impact on the quantity of bean marketed. This is possibly an indication that the increased household’s participation in output market is a function of farm productivity too.

Determinants of Market Participation Among Maize Farmers in Ogbomoso Zone, Oyo State, Nigeria

Abstract The key to increasing agricultural output in developing countries is improving the productivity of farmers, which cannot be achieved without markets that would effectively bind the increasingly specialized activities of thousands of widely dispersed producers into an integrated national economy. Although, there is a high potential for rural farmers to derive livelihood from market-oriented agriculture and improve their standard of living, but what are those factors determining farmers’ market participation. Thus, this study investigates the determinants of market participation among maize farmers in Ogbomoso zone of Oyo state, Nigeria. A simple random sampling technique was used in the selection of respondents and a well-structured questionnaire was used to gather information on socio-economic attributes and market participation among maize farmers in Ogbomoso, Oyo State. Eighty questionnaire were administered, but 79 retrieved were subjected to analysis. Data were analysed using descriptive statistics and probit regression. The results show that majority of the farmers were male (70.9%), married (67.1%) and had a minimum of secondary education (74.7%) and above. Also, 70% had direct access and planted improved maize seed and 58% sold maize produced in the urban market. Probit model result shows that gender, age, marital status, household size, farming experience, educational level and membership of association/group are the major determinants influencing market participation in the study area. The study recommends that government should encourage formation of associations/groups, where farmers can get information about market situations and formulate policies on adult literacy programme to encourage farmers to participate more in market.

The Nature of Financial Regulation and its Rationales

This introductory paper explores the general nature of financial regulation as a set of behavioral rules. Public authorities impose these rules on market participants. The aim is to influence market participants’ behavior in order to achieve certain regulatory goals. The financial crisis has changed our perception of how regulation should be designed in order to achieve these goals. The advent of FinTech challenges our perception again.

Analysis of the marketing behaviour of African indigenous leafy vegetables among smallholder farmers in Nyamira County, Kenya

The African Indigenous Leafy Vegetables (AILV) agricultural sub-sector in Kenya has in recent times gained considerable prominence and attention. A diverse number of studies have underpinned the role it can play in improving the economic standing of smallholders, while playing an imperative nutritional role in the diets of many consumers. Stemming from increased awareness on the rise of various lifestyle illnesses and crusaders championing for healthy eating habits, the demand of AILV, as healthier dietary alternatives, has been gradually on the rise. However, the socioeconomic and institutional factors that influence market participation and the effect of choice of market packages on AILV income are still not clear. Therefore, the main objectives of the study were: to characterize the socio-economic attributes of AILV farmers; to determine factors influencing households’ market participation behaviour; and to identify the combination of market outlets that deliver the highest payoffs (income) to farmers. The study was based on data collected from a sample of 254 households drawn from Nyamira North Sub-County in Nyamira County. A multistage sampling procedure was used to arrive at the sample, with semi structured questionnaires employed as the research instrument to collect qualitative and quantitative data through face to face interviews. The determinants of market participation behaviour among smallholders was estimated by an ordered probit model, while the combination of market outlets that delivered the highest payoffs (income) to farmers employed a multinomial endogenous switching regression. SPSS and STATA software were used for data analysis and management. Findings revealed that marketing experience, land ownership, households’ food self-sufficiency, contractual marketing, access to credit and extension services significantly influenced the regimes in which smallholders participated in markets. Further, using market packages that contained urban market outlets led to higher incomes among smallholders. It is not enough that farmers merely participated in markets, rather they should participate in markets profitably as net sellers. Identifying the specific challenges and requirements that are unique for each market regime (net sellers, autarkic and net buyers) through proper targeting and screening of farmers is necessary. Here, equipping extension workers with the ability to address the specific needs of each group is recommended. Urban markets, in isolation as well as in market packages, were clearly shown to offer higher incomes in actual and counterfactual scenarios. Improving the condition of roads linking urban markets to producers could potentially reduce transportation costs of accessing such urban markets. This could go on to encourage the use of urban markets among farmers, who stand to gain better income and gradually fish themselves out of poverty traps.

Factors Influencing Market Participation among Sesame Producers in Benue State, Nigeria

Factors Influencing Market Participation among Sesame Producers in Benue State, Nigeria

A Triple‐Hurdle Model of Production and Market Participation in Kenya's Dairy Market

Existing analyses of market participation are based on a “double‐hurdle” modeling approach. Such models are appropriate only when all members of the population of interest actually produce the good. In some contexts, however (e.g., smallholder farmers), many members of the population do not produce particular goods that they could produce and that their neighbors do produce. Policies influencing market participation among producers may thus also induce additional farmers to become producers. Previous double‐hurdle approaches do not allow explicitly for this possibility. To address these limitations, this article presents a “triple‐hurdle” approach with an initial stage that includes nonproducers. The model is used to identify the factors associated with Kenyan smallholder farmers choosing to participate in dairy production, and the role that these producers choose to play (or not) in the marketplace. In the midst of debates underway over the privatization of the parastatal Kenya Creameries Company, new knowledge about smallholder participation in dairy could be an important contribution. Results suggest the importance of rural electrification, training, and improved grazing practices. We find that expected net sales are significantly higher when farmers have access to informal private markets. We also describe a version of the ordered tobit model that includes nonproducers and is nested in our triple‐hurdle model. A likelihood ratio test shows the latter to be a significantly better fit to our data. We discuss how insights gained from this study differ from the insights that would come from a double‐hurdle ordered tobit that also includes nonproducers.

Knowledge of Livestock Grading and Market Participation among Small Ruminant Producers in Northern Somalia

ABSTRACTThis study focused on market participation and producers’ knowledge of the indigenous livestock grading and pricing system applied to small ruminant marketing in Somaliland. Data were collected from a random sample of 144 men and women producers in three livelihood zones: Hawd pastoral, West Golis pastoral and Togdheer agro-pastoral zones. Results confirmed the importance of small ruminants as sources of income in producer households. Knowledge about the grading system was generally widespread, and this was important for market participation. Factors that significantly influenced market participation were number of animals kept, gender of sales/decision maker, age of household head and livelihood zone.

Determinants of smallholder farmers' participation in maize and pigeonpea markets in Tanzania

ABSTRACTThis paper analyses factors influencing market participation decisions and the level of commercialisation among maize and pigeonpea smallholder farmers in Tanzania. The study utilises cross-sectional farm household-level data collected in 2010 from a randomly selected sample of 700 smallholder farming households. The two-step decision-making process was analysed using a Heckman selectivity procedure. The results showed that fixed transaction costs associated with market information and household characteristics such as gender and education level of the household head had a statistically significant influence on market participation. Proportional transaction costs (distance to market) and variables such as output prices, farm size, labour force, membership of farmer associations and geographical location of households influenced both market participation and intensity of participation. The results suggest that policies aimed at improving rural road infrastructure, market information systems, smallholder asset accumulation, human capital and promotion of farmer association could reduce transaction costs and enhance market participation and marketed supply by smallholder farmers.

The Birth of the Petroyuan, Sino-American Currency Contestation, and the International Monetary System: An Institutional Analysis

This paper focuses on the rise of the -- the use of China's currency (renminbi, denominated in yuan) to pay for a growing share of its hydrocarbon imports. The advent of the petroyuan holds potentially profound ramifications for both transactional practice in international energy markets and the future of the international monetary system. For the last four decades, the dollar has been the overwhelmingly dominant currency in which oil and gas volumes are priced and in which international oil and gas sales are invoiced and settled. In turn, the dollar's role in the international energy trade has, for forty years, been a pillar for its standing as the world's leading transactional and reserve currency. The birth of the petroyuan is the most significant challenge yet to the indefinite prolongation of dollar dominance in international oil and gas transactions -- and thus, by extension, to the dollar's global primacy. The paper examines the birth of the petroyuan, considers its current and prospective challenge to the petrodollar, assesses the long-term implications of these developments for transactional practice in international energy markets and for the future of the international monetary system. In doing so, the paper highlights deficiencies in conventional economic explanations for patterns of currency use in cross-border oil and gas transactions and underscores the analytic value-added of alternative approaches drawn from institutional and neo-institutional economics. In particular, the paper emphasizes how powerful state actors work through international political and economic structures to limit and influence market participants' options for currency choice in cross-border hydrocarbon sales. They do so for explicitly strategic reasons, including shaping the institutional environment for international monetary relations. In this regard, taking account of American and, more recently, Chinese state preferences and actions is essential to explaining evolving patterns of currency choice in international oil and gas markets.Looking ahead, it seems highly likely that use of renminbi as a settlement currency for cross-border hydrocarbon transactions will increase. As Sino-American currency contestation unfolds in coming years, it is important for scholars, practitioners, and policymakers to understand that currency choice in international energy markets is framed at least as much by political forces -- in particular, by great power competition -- as by economic considerations.

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

Cattle Commercialization in Rural South Africa: Livelihood Drivers and Implications for Livestock Marketing Extension

Commercialization of livestock farming systems remains a challenge in rural South Africa. Recent empirical evidence places agricultural extension at the forefront of policy strategy to address this challenge. This study applies the sustainable livelihood framework (SLF) to qua ntitatively analyze the factors confou nding participation in cattle markets for the purpose of informing agriculture extension programming. Based on a dataset compiled from a household survey of 230 randomly selected smallholder cattle farmers in Okhahlamba L ocal Municipality (OLM), a Double-Hurdle econometric estimation technique is used to determine factors within the SLF influencing market participation and supply volumes decisions. The results reveal that the low rate of market participation could be explained by the broader aspects of livelihoods of smallholder cattle farmers, including limited access to financial, social and natural capital, as well as the difference in livelihood strategies and motivations. Based on these findings, the study draws the implications for the design of livestock extension programs in OLM, and South Africa in general.