Determinants of market channel choice utilised by maize and sunflower farmers in the North West province, South Africa

Nxumalo, K.K.S.; Oduniyi, Oluwaseun Samuel; Antwi, Michael Akwasi; Tekana, Sibongile Sylvia

doi:10.1080/23311886.2019.1678451

Cited by 20 publications

(22 citation statements)

References 15 publications

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“…Other demographic characteristics, such as education, household size, and farming experience, are not important factors that affect farmers' participation and intensity of participation in the direct marketing channel. This finding is contrary to the extant studies, which have observed that the aforementioned farmer demographic characteristics influence farmers' marketing channel decision in developing countries, including Ghana [26,42,44,46].…”

Section: Discussioncontrasting

confidence: 99%

“…Evidence from Donkor, Onakuse [9] suggests that improving road networks in rural areas, enhancing farmers' access to market information, and membership of associations could promote cassava farmers' active participation in direct marketing channels in Nigeria. Nxumalo, Oduniyi [44] showed that access to extension services, farm experience, gender, marital status, and education had positive effects on maize farmers' decision to participate in informal markets in South Africa. Chikuni and Kilima [45] found that the price of maize and access to extension services negatively correlated with maize farmers' participation in the market, whereas gender showed a negative effect in Malawi.…”

Section: Literature Reviewmentioning

confidence: 99%

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Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana

et al. 2021

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Enhancing smallholder farmers’ access to reliable, ready, and direct marketing channels is a prerequisite for sustainable food supply and poverty reduction in the developing countries including Ghana. However, it is a great challenge for smallholder farmers to access direct marketing channels in Ghana. This paper analyzes the factors that influence smallholder rice farmers’ participation, and the intensity of participation, in direct marketing channels using primary data from 199 farmers in three rice-growing districts in the Northern Region of Ghana. A double hurdle model was used in the empirical analysis. The study findings show that a lower percentage of farmers sold their rice output to processors (direct marketing). Farm size, the price of rice output per 85 kg bag, access to market information, and access to credit increased farmers’ participation in direct marketing channels, whereas payment period and ownership of a bicycle reduced their participation. The study concludes that improving farmers’ access to market information and credit availability would enhance participation in direct marketing channels.

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Section: Discussioncontrasting

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana

et al. 2021

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“…Among smallholder farmers, the marketing of agricultural commodities remains a challenge (Umberger et al, 2015), whereas reliable and ready markets serve as an incentive for producers to increase their farm outputs. High transaction costs associated with formal markets have been reported, considering the need for farmers to comply with stringent quality standards and volume requirements (Nxumalo et al, 2019). By developing the capacity to sell to an institutional buyer, smallholder farmers may acquire the knowledge, skills and confidence needed to engage with formal markets.…”

Section: Review Of Literaturementioning

confidence: 99%

“…Baipheti and Jacobs (2009) hence, noted that subsistence or smallholder production can increase food supplies and thus cushion households from food price shocks, thereby improving their household food security. The dominant narrative regarding formal market-inclusion for smallholders have also been questioned (Nxumalo et al 2019), as smallholder farmers may exhibit subjective attitudes where their personal preferences drive reluctance to engage with certain market sources. When price received is not the only factor explaining smallholder farmers' choice of market channels, and the personal relationships involved, including issues of perception and trust are prominent; then their marketing channel preferences matter for the question of whether they participate, or do not, in formal supply chains.…”

Section: Review Of Literaturementioning

confidence: 99%

The Market Channel Preference Among Smallholder Cocoyam Farmers in South Africa: A Food Security Perspective

Nwafor¹

2020

Preprint

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Market channel choice makes important contributions to the incomes and other livelihood attributes among smallholder farmers in developing countries. Often considered from a number of perspectives, the dominant view articulated suggests an advantageous integration into formal market channels. This position is questioned as it has implications for smallholder farmers’ food security and rural incomes. Using a mixed methods approach, the study collected primary data from 174 smallholder farmers and applied both a descriptive and multinomial logit regression model to analyze factors contributing to cocoyam production and market channel choices among respondents in the study area. Findings indicate that financial returns and available markets were key factors in cocoyam production, while amount received was a driver of market channel choice among 89% of respondents who sold directly at farm-gate. Farmers’ age (p=0.044), household size (p=0.043), distance to market (p=0.021), additional income (p=0.017) and amount received (p=0.014) were significant variables (p<.05) in the determinants of market channel choice. The study recommended improving market information provision and strengthening farmer associations which will enable smallholder farmers in rural communities to make informed choices with respect to produce price, access other markets and consolidate their collective market bargaining position.

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“…Every farmer will try to maximize his/her gain from selling of their products, but they have many choices or market outlets, which they should choose from. In lots of cases the market outlet choice is determined by gender, age, marital status, education and some other demographic variables, so their gains from this activities will vary based on mentioned characteristics (Nxumalo, Oduniyi, Antwi, & Tekana, 2019;Dessie, Abate, & Mekie, 2018). As farmers are in large number their collective activity will affect their choice of market outlet and their earnings in turn too (Xaba & Masuku, 2013) which have happened in case of honey producers in Chena district of Ethiopia, they are selling most of their product via cooperatives (Tarekegn, Haji, & Tegegne, 2017).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Market Outlets Choice on Beekeepers’ Income in Rural Poor: A Case Study of Badakhshan Province

Yolchi¹

2021

jeb

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This research carried out to uncover the effect of beekeeping on the income of rural poor and to which extent that market outlet choice affects the income of beekeepers. The findings of Multinomial Logit regression, from 129 questionnaires of 4 districts indicate that there is no relationship between market outlet choice and income of beekeepers. The income of beekeepers is mostly affected by their family size and working experience. But the factors affecting to choose the home selling market outlet is very different from those of three other channels. In order to promote the income of beekeepers, it’s recommended that the government and other involved NGOs work on arrangements on wholesale opportunities for beekeepers. Because over 102 out of 129 samples have indicated that their products aren’t sold out on time. It means that there is a huge opportunity of filling the gap of honey demand in Afghanistan by promoting the links between producers and buyers.

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Determinants of market channel choice utilised by maize and sunflower farmers in the North West province, South Africa

Cited by 20 publications

References 15 publications

Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana

Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana

The Market Channel Preference Among Smallholder Cocoyam Farmers in South Africa: A Food Security Perspective

The Impact of Market Outlets Choice on Beekeepers’ Income in Rural Poor: A Case Study of Badakhshan Province

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