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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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    7. 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.
    8. 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.
    9. 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).
    10. 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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    12. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 361-371, May.
    13. Jalang'o, Dorcas Anyango, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Research Theses 276431, Collaborative Masters Program in Agricultural and Applied Economics.
    14. Mofokeng, Maine & Vink, Nick, 2013. "Factors Affecting the Hedging Decision of Maize Farmers in Gauteng Province," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161465, African Association of Agricultural Economists (AAAE).
    15. 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.
    16. 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).
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