Smallholder farmers' market participation and mobile phone‐based market information services in Lilongwe, Malawi

Abstract

There has been growing interest in the development of technology‐based systems to empower farmers in Africa. This paper determines the effect of mobile phone‐based market information services (MIS) on farmers' decisions to participate in maize markets in Lilongwe, Malawi. The study reveals insufficient evidence to suggest that the MIS influence farmers' market participation decisions. Knowledge of prevailing prices may not necessarily guarantee farmers market participation, especially when buyers determine market prices and transaction costs are high. Consequently, farmers with no access to alternative markets fail to improve their marketing outcomes. The findings suggest that channelling government's resources towards improving extension services and increasing farmers' productivity are ideal ways to promote the participation of smallholder farmers in agricultural markets. The findings also underscore the need to integrate radio and mobile phones in agricultural MIS and to provide farmers with information related to agricultural production in addition to market prices. These recommendations could be realized through better coordination of market access initiatives involving smallholder farmers, government departments, NGOs, mobile network operators, and media houses.

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

“…The coefficient of access among livestock farmers to ICT-based information sources had a positive and statistically significant impact on market participation. Although there is agreement regarding the importance of ICTs for market information, some studies such as [60] have reported insufficient evidence to indicate the influence of an ICT market information source on farmer's market participation decisions. Nonetheless, other findings have shown the benefits of using ICTs, and how they constitute a viable approach for linking smallholders to markets [61][62][63].…”

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

“…The coefficient of access among livestock farmers to ICT-based information source had a positive and statistically significant impact on market participation. Though there is agreement regarding the importance of ICTs for market information, some studies such as [48] have reported insufficient evidence to indicate the influence of an ICT market information source on farmer's market participation decisions. Nonetheless, other findings have shown the benefits of using ICTs, and how they constitute a viable approach for linking smallholders to markets [49][50][51].…”

Adoption of mobile phone for marketing of cereals by smallholder farmers in Quang Dien District of Vietnam

“…Information and Communication Technologies (ICTs) such as TV, mobile phones, radio and internet systems can be an important means of making smallholders more informed about marketing information because ICTs can enable the smallholders access to timely and accurate information that they need when making important decisions. Several researchers (Chikuni & Kilima, 2019;Razaque & Sallah, 2013;Zhang, Wang, & Duan, 2016) suggest that the adoption of ICTs such as mobile phones improved the bargaining power of farmers and enhanced communication among the farmers. Some scholars (Alavion & Allahyari, 2012;Bachaspati, 2018;Goyal & González-Velosa, 2013) also claimed that the use of ICTs for marketing by farmers contributes by removing intermediaries, reducing transaction costs and helping them find potential customers.…”