A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini

Abstract

Beef cattle farmers are in an ideal position to advance their income through marketing; however, the subsector is characterized by low market participation. Wealth preservation and prestige from cattle accumulation outweigh market incentives, thereby jeopardizing the integration of farmers into organized market systems. Therefore, the study was set to examine the determinants of farmers’ sales decisions in cattle marketing. Understanding determinants of sales decisions is an indispensable base for establishing sustainable development policy frameworks that maximize rural economic growth. Descriptive statistics and a double-hurdle model were applied on cross-sectional data collected from 397 farmers through personal interviews aided by a structured questionnaire. Herd size (74.1%), ecological zone (32.4%), slaughters (22.1%), pregnant cows (18.2%), experience (15.0%) and breed type (11.4%) revealed statistically significant effects on the probability of market participation. The key determinants of the level of market participation (p < 0.01) included extension, married marital status, pasture availability, cows, heifers, market distance, market information and market channel 2 (individual). Education, experience, non-farm income, expenses and laborers were significant at p < 0.05. Widowed marital status and market channel 1 (processor) were found to be significant at p < 0.1. Extension adjustments and institutionalization of market linkages are recommended to assist farmers in increasing marketable surplus.

Examining Profitability, Viability, and Commercialization Level of Beef Cattle Production among Pastoralists in the Simanjiro District of the Manyara Region, Tanzania

“…Access to farm credits should be improved among pastoralists. Farm credit is important for investing in beef cattle production, thus boosting beef cattle productivity and profitability, which improves the economic sustainability of beef cattle production [32]. Regarding access to veterinary services, results show that 56.3% of pastoralists had access to veterinary services.…”

Towards Intensive Co-operated Agribusiness: A Gender-Based Comparative Borich Needs Assessment Model Analysis of Beef Cattle Farmers in Eswatini

“…Agribusiness management practices are paramount in the organization of production efforts and the transaction of marketable surplus. Knowledge and skills in agribusiness and cattle marketing and pricing are key in enhancing farmers' competitiveness in the unorganized market structure in Eswatini [50]. This is vital in increasing the economic benefit that creates interest in agribusiness farming.…”

“…Market imperfection, induced by the lack of an organized cattle market structure [50], has deprived farmers of market price information, hence the low competence levels in cattle marketing and pricing. The insignificant difference between the gender groups regarding cooperative and farm business management is logical since such practices are not embedded in the traditional farming system that serves as the basis for household farm education.…”

“…Agribusiness-related management practices, marketing and pricing (MWDS Male = 14.646, MWDS Female = 15.488), and farm business management (MWDS Male = 13.417, MWDS Female = 14.009), obtained the highest overall ranking (1st and 2nd, respectively). Information dissemination in these concepts is critical in building farmers' competitiveness [49], especially under conditions of market imperfection that deprive smallholder farmers of market price information [50]. Smallholder farmers with reduced market competence often suffer market segregation and fail to penetrate formal markets [52].…”

Evaluation of Environmental Efficiency of Edible Canna Production in Vietnam

“…Several studies used this model as a tool for the second stage because the efficiency score of farms calculated in the first stage ranged from 0 to 1 and had censored distributions [37]. However, recent studies also showed that there exists an inadequacy in the result of the Tobit model due to the biased estimation [38]. Hence, the truncated regression model is a more appropriate choice to explain the relationship between environmental efficiency score and independent variables related to the socioeconomic characteristics of edible canna farms.…”