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Factors enhancing market participation by small-scale cotton farmers

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  • Randela, Rendani
  • Alemu, Zerihun Gudeta
  • Groenewald, Jan A.

Abstract

This paper uses data collected from 177 small-scale farming households in Mpumalanga in an effort to identify factors that significantly influence the degree of commercialisation or market participation. A logistic regression model was applied within the transaction costs framework. Results support the hypothesis that transactions costs rank among the main determinants of commercialisation. The following variables were statistically significant: age, ability to speak/understand English, region, ownership of transport, access to market information, distance to market, dependency ratio, trust, land size and ownership of livestock. Increases in the latter four have negative effects on commercialisation. The negative relationship between land size and commercialisation probably indicates that increased market participation is also a function of input (land) productivity.

Suggested Citation

  • Randela, Rendani & Alemu, Zerihun Gudeta & Groenewald, Jan A., 2008. "Factors enhancing market participation by small-scale cotton farmers," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(4), pages 1-18, December.
    • Handle: RePEc:ags:agreko:47656
    DOI: 10.22004/ag.econ.47656
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    6. Kabeto, Agete Jerena, 2014. "An Analysis of Factors Influencing Participation of Smallholder Farmers in Red Bean Marketing in Halaba Special District, Ethiopia," Research Theses 198526, Collaborative Masters Program in Agricultural and Applied Economics.
    7. Edward Martey & Prince M. Etwire & Alexander Nimo Wiredu & Benjamin D. K. Ahiabor, 2017. "Establishing the link between market orientation and agricultural commercialization: Empirical evidence from Northern Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(4), pages 849-866, August.
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    10. Bardhan, Dwaipayan & Sharma, M.L. & Saxena, Raka, 2012. "Market Participation Behaviour of Smallholder Dairy Farmers in Uttarakhand: A Disaggregated Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(2).
    11. GACHUHI, Martha Wanjiru & OWUOR, George & GATHUNGU, Edith, 2021. "Determinants Of Intensity Of Soybean Commercialization Among Smallholder Farmers In Butere, Kenya," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 24(2), October.
    12. Mujawamariya, Gaudiose & D'Haese, Marijke F.C. & Burger, Kees, 2010. "Influence of interlocked transactions on gum arabic production and marketing in Senegal," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96826, African Association of Agricultural Economists (AAAE).
    13. Moono, Lizzen, 2015. "An Analysis of Factors Influencing Market Participation Among Smallholder Rice Farmers in Western Province, Zambia," Research Theses 243459, Collaborative Masters Program in Agricultural and Applied Economics.
    14. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    15. Jordaan, Henry & Grové, Bennie & Backeberg, Gerhard R., 2014. "Conceptual framework for value chain analysis for poverty alleviation among smallholder farmers," International Journal of Agricultural Sciences and Technology (IJAGST), SvedbergOpen, vol. 53(1), February.
    16. Kabeto, Agete Jerena, 2014. "An Analysis Of Factors Influencing Participation Of Smallholder Farmers In Red Bean Market In Halaba Special District, Ethiopia," Research Theses 276425, Collaborative Masters Program in Agricultural and Applied Economics.
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    18. Girmay, Hailay & Legesse, Belaineh & Ejigu, Abebe & Tajebe, Seare, 2020. "Dairy Producers’ Market Participation Decision and Volume of Milk Supply in Mekelle City, Ethiopia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 9(3).
    19. Jalang’o, Dorcas Anyango & Otieno, David Jakinda & Oluoch-Kosura, Willis, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Dissertations and Theses 269269, University of Nairobi, Department of Agricultural Economics.
    20. Dlamini, Lucinda Nosizo, 2019. "Determinants of commercial orientation and the level of market participation by women maize farmers in Eswatini," Research Theses 334763, Collaborative Masters Program in Agricultural and Applied Economics.

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