IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i14p7699-d591548.html
   My bibliography  Save this article

A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces

Author

Listed:
  • Simphiwe Innocentia Hlatshwayo

    (African Centre for Food Security, School of Agricultural, Earth and Environmental Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa
    Centre for Transformative Agricultural and Food Systems, School of Agricultural, Earth and Environmental Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa)

  • Mjabuliseni Ngidi

    (African Centre for Food Security, School of Agricultural, Earth and Environmental Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa
    Centre for Transformative Agricultural and Food Systems, School of Agricultural, Earth and Environmental Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa
    Department of Agricultural Extension and Rural Resource Management, School of Agricultural, Earth and Environmental Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa)

  • Temitope Ojo

    (Department of Agricultural Economics, Obafemi Awolowo University, Ile-Ife 22005, Nigeria
    Disaster Management Training and Education Centre for Africa, University of the Free State, Bloemfontein 9301, South Africa)

  • Albert Thembinkosi Modi

    (Centre for Transformative Agricultural and Food Systems, School of Agricultural, Earth and Environmental Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa)

  • Tafadzwanashe Mabhaudhi

    (Centre for Transformative Agricultural and Food Systems, School of Agricultural, Earth and Environmental Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa)

  • Rob Slotow

    (Centre for Transformative Agricultural and Food Systems, School of Life Sciences, College of Agriculture, Engineering and Science, University of KwaZulu-Natal, Private Bag X01, Scottsville, Pietermaritzburg 3201, South Africa)

Abstract

Smallholder farmers face several challenges that limit their access to markets and prevent them from taking advantage of market opportunities. This study sought to provide observed information on households’ involvement in the output market and to analyse the determinants of the level of market participation among smallholder farmers in South Africa. Data (secondary) for this study were collected from a total of 1520 respondents who were selected through stratified random sampling. Descriptive statistics, t -test and a double-hurdle model were used to analyse factors influencing smallholder farmers’ decisions regarding participation in the agricultural market. The first-hurdle equation of the double-hurdle model showed that gender of the household, family member working on the farm, wealth index, and agricultural assistance had a positive significant impact on the decision of smallholder farmers to participate in the market, while household age and family member with HIV had a negative significant impact. The results of the second-hurdle model showed marital status, educational level of household, wealth index, and access to agricultural assistance had a negative significant effect on the extent of market participation among smallholder farmers, while household size, household age, and family member with HIV had a positive significant impact. The suggestions emanating from the results as to what factors need to be addressed to encourage smallholder farmers to participate in the market indicate that there is a need for government to hire sufficient and skilled extension workers who understand the market related issues. With the help of extension workers and policymakers, government need to organize smallholder farmers into groups that are easy to manage, train, and support. Smallholder farmers’ groups should have their farmers registered, visible, and easily accessible for coordinated government support services. They also need to do more workshops in rural areas to encourage young people to be involved in agriculture. This will lead to sustainable production, alleviation of poverty, improvement of the economy, and food security.

Suggested Citation

  • Simphiwe Innocentia Hlatshwayo & Mjabuliseni Ngidi & Temitope Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow, 2021. "A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:7699-:d:591548
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/14/7699/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/14/7699/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cadot, Olivier & Dutoit, Laure & Olarreaga, Marcelo, 2006. "How costly is it for poor farmers to lift themselves out of poverty?," Policy Research Working Paper Series 3881, The World Bank.
    2. Giuseppe De Luca & Valeria Perotti, 2011. "Estimation of ordered response models with sample selection," Stata Journal, StataCorp LP, vol. 11(2), pages 213-239, June.
    3. Unknown, 2004. "Successful Community-Based Seed Production Strategies," Manuals 56188, CIMMYT: International Maize and Wheat Improvement Center.
    4. Mather, David & Boughton, Duncan & Jayne, T.S., 2013. "Explaining smallholder maize marketing in southern and eastern Africa: The roles of market access, technology and household resource endowments," Food Policy, Elsevier, vol. 43(C), pages 248-266.
    5. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    6. Greene, William, 2008. "Functional forms for the negative binomial model for count data," Economics Letters, Elsevier, vol. 99(3), pages 585-590, June.
    7. Quisumbing, Agnes R. & Pandolfelli, Lauren, 2010. "Promising Approaches to Address the Needs of Poor Female Farmers: Resources, Constraints, and Interventions," World Development, Elsevier, vol. 38(4), pages 581-592, April.
    8. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition, and stratification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 117-139, August.
    9. Osmani, Ataul Gani & Hossain, Elias, 2015. "Market Participation Decision Of Smallholder Farmers And Its Determinants In Bangladesh," Economics of Agriculture, Institute of Agricultural Economics, vol. 62(1), pages 1-17, March.
    10. Jayne, T.S. & Mather, David & Mghenyi, Elliot, 2010. "Principal Challenges Confronting Smallholder Agriculture in Sub-Saharan Africa," World Development, Elsevier, vol. 38(10), pages 1384-1398, October.
    11. Uchezuba, I.D. & Moshabele, E. & Digopo, D., 2009. "Logistical estimation of the probability of mainstream market participation among small-scale livestock farmers: a case study of the Northern Cape province," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(2), pages 1-13, June.
    12. Nelson Mango & Byron Zamasiya & Clifton Makate & Kefasi Nyikahadzoi & Shephard Siziba, 2014. "Factors influencing household food security among smallholder farmers in the Mudzi district of Zimbabwe," Development Southern Africa, Taylor & Francis Journals, vol. 31(4), pages 625-640, July.
    13. Vargas Hill, Ruth & Vigneri, Marcella, 2011. "Mainstreaming gender sensitivity in cash crop market supply chains," ESA Working Papers 289013, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    14. Kirimi, Lilian & Gitau, Raphael & Olunga, Millicent, 2013. "Household Food Security And Commercialization Among Smallholder Farmers In Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161445, African Association of Agricultural Economists (AAAE).
    15. Corsi, Stefano & Marchisio, Laura Viviana & Orsi, Luigi, 2017. "Connecting smallholder farmers to local markets: Drivers of collective action, land tenure and food security in East Chad," Land Use Policy, Elsevier, vol. 68(C), pages 39-47.
    16. Achandi, Esther L. & Mujawamariya, Gaudiose, 2016. "Market participation by smallholder rice farmers in Tanzania: a double hurdle analysis," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(2), pages 1-4, August.
    17. Marenya, Paswel P. & Barrett, Christopher B., 2007. "Household-level determinants of adoption of improved natural resources management practices among smallholder farmers in western Kenya," Food Policy, Elsevier, vol. 32(4), pages 515-536, August.
    18. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    19. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    20. Michael Aliber & Ruth Hall, 2012. "Support for smallholder farmers in South Africa: Challenges of scale and strategy," Development Southern Africa, Taylor & Francis Journals, vol. 29(4), pages 548-562, October.
    21. Nyein Nyein Kyaw & Soojung Ahn & Sang Hyeon Lee, 2018. "Analysis of the Factors Influencing Market Participation among Smallholder Rice Farmers in Magway Region, Central Dry Zone of Myanmar," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    22. Arega, D.A. & Manyong, Victor M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, George D., 2008. "Smallholder marketed surplus and input use under transactions costs: maize supply and fertilizer demand in Kenya," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52074, African Association of Agricultural Economists (AAAE).
    23. Christopher Ugochukwu Nwafor & Abiodun A. Ogundeji & Carlu van der Westhuizen, 2020. "Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa," Agriculture, MDPI, vol. 10(2), pages 1-13, February.
    24. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    25. Lowder, Sarah K. & Skoet, Jakob & Raney, Terri, 2016. "The Number, Size, and Distribution of Farms, Smallholder Farms, and Family Farms Worldwide," World Development, Elsevier, vol. 87(C), pages 16-29.
    26. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nonkululeko Thandeka Brightness Zondi & Mjabuliseni Simon Cloapas Ngidi & Temitope Oluwaseun Ojo & Simphiwe Innocentia Hlatshwayo, 2022. "Impact of Market Participation of Indigenous Crops on Household Food Security of Smallholder Farmers of South Africa," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    2. Mahlako Nthabeleng Mokgomo & Clarietta Chagwiza & Phathutshedzo Fancy Tshilowa, 2022. "The Impact of Government Agricultural Development Support on Agricultural Income, Production and Food Security of Beneficiary Small-Scale Farmers in South Africa," Agriculture, MDPI, vol. 12(11), pages 1-21, October.
    3. Batizi Serote & Salmina Mokgehle & Grany Senyolo & Christian du Plooy & Samkelisiwe Hlophe-Ginindza & Sylvester Mpandeli & Luxon Nhamo & Hintsa Araya, 2023. "Exploring the Barriers to the Adoption of Climate-Smart Irrigation Technologies for Sustainable Crop Productivity by Smallholder Farmers: Evidence from South Africa," Agriculture, MDPI, vol. 13(2), pages 1-19, January.
    4. Masud Rana & Keshav Lall Maharjan, 2022. "Participation of Brinjal Farmers in Large and Small Wholesale Markets: Factors Influencing Farmers’ Decisions and Impact on Producers’ Prices," Sustainability, MDPI, vol. 14(4), pages 1-20, February.
    5. Simphiwe Innocentia Hlatshwayo & Temitope Oluwaseun Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow & Mjabuliseni Simon Cloapas Ngidi, 2022. "The Determinants of Market Participation and Its Effect on Food Security of the Rural Smallholder Farmers in Limpopo and Mpumalanga Provinces, South Africa," Agriculture, MDPI, vol. 12(7), pages 1-16, July.
    6. Eliaza Mkuna & Edilegnaw Wale, 2022. "Explaining Farmers’ Income via Market Orientation and Participation: Evidence from KwaZulu-Natal (South Africa)," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    7. Mjabuliseni Simon Cloapas Ngidi & Sinethemba Sibusisiwe Zulu & Temitope Oluwaseun Ojo & Simphiwe Innocentia Hlatshwayo, 2023. "Effect of Consumers’ Acceptance of Indigenous Leafy Vegetables and Their Contribution to Household Food Security," Sustainability, MDPI, vol. 15(6), pages 1-14, March.
    8. Gloria Otieno & Robert John O Ogola & Tobias Recha & Jemal Nurhisen Mohammed & Carlo Fadda, 2022. "Climate Change and Seed System Interventions Impact on Food Security and Incomes in East Africa," Sustainability, MDPI, vol. 14(11), pages 1-22, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sicelo Ignatius Dlamini & Wen-Chi Huang, 2019. "A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini," Sustainability, MDPI, vol. 11(19), pages 1-27, September.
    2. Christopher Ugochukwu Nwafor & Abiodun A. Ogundeji & Carlu van der Westhuizen, 2020. "Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa," Agriculture, MDPI, vol. 10(2), pages 1-13, February.
    3. Simphiwe Innocentia Hlatshwayo & Temitope Oluwaseun Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow & Mjabuliseni Simon Cloapas Ngidi, 2022. "The Determinants of Market Participation and Its Effect on Food Security of the Rural Smallholder Farmers in Limpopo and Mpumalanga Provinces, South Africa," Agriculture, MDPI, vol. 12(7), pages 1-16, July.
    4. Eunice Adu Donkor & Elena Garnevska & Muhammad Imran Siddique & Emmanuel Donkor, 2021. "Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    5. Melkani, Aakanksha & Mason, Nicole & Mather, David & Chisanga, Brian & Jayne, Thom, 2021. "Smallholder Market Participation and Choice of Marketing Channel in the Presence of Liquidity Constraints: Evidence from Zambian Maize Markets," 2021 Conference, August 17-31, 2021, Virtual 315273, International Association of Agricultural Economists.
    6. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    7. Olwande, John & Smale, Melinda & Mathenge, Mary K. & Place, Frank & Mithöfer, Dagmar, 2015. "Agricultural marketing by smallholders in Kenya: A comparison of maize, kale and dairy," Food Policy, Elsevier, vol. 52(C), pages 22-32.
    8. Larochelle, Catherine & Alwang, Jeffrey, 2015. "Explaining Marketing Strategies among Bolivian Potato Farmers," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(3), pages 1-24, September.
    9. Jorine Tafadzwa Ndoro & Patrick Hitayezu, 2014. "Drivers of cattle commercialization in rural South Africa: A combined test of transaction cost and store-of-wealth hypotheses," Agrekon, Taylor & Francis Journals, vol. 53(3), pages 57-78, September.
    10. Ndoro, Jorine T. & Hitayezu, Patrick & Mudhara, Maxwell & Chimonyo, Michael, 2013. "Livelihood factors influencing market participation and supply volumes decisions among smallholder cattle farmers in the Okhahlamba Local Municipality, South Africa: Implications for agricultural exte," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160477, African Association of Agricultural Economists (AAAE).
    11. Donkor, Emmanuel & Mbeche, Robert & Mithöfer, Dagmar, 2023. "Strategic business decisions of retailers in the edible insect value chain in Uganda," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(2), January.
    12. Genereuse, Umuhoza, 2012. "Analysis of Factors Influencing Women Participation in Coffee Value Chain in Huye District, Rwanda," Research Theses 243451, Collaborative Masters Program in Agricultural and Applied Economics.
    13. Mukundi, Eric & Mathenge, Mary K. & Ngigi, Margaret, 2013. "Sweet Potato Marketing Among Smallholder Farmers: The Role of Collective Action," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160679, African Association of Agricultural Economists (AAAE).
    14. Khonje, Makaiko & Mkandawire, Petros & Manda, Julius & Alene, Arega, 2015. "Analysis of adoption and impacts of improved cassava varieties," 2015 Conference, August 9-14, 2015, Milan, Italy 211842, International Association of Agricultural Economists.
    15. Nazziwa-Nviiri, Lydia & Van Campenhout, Bjorn & Amwonya, David, 2017. "Stimulating agricultural technology adoption: Lessons from fertilizer use among Ugandan potato farmers," IFPRI discussion papers 1608, International Food Policy Research Institute (IFPRI).
    16. Wanjala, Bernadette, 2016. "Can the big push approach end rural poverty in Africa? : Insights from Sauri millennium village in Kenya," Other publications TiSEM 5a686b22-6749-4e9e-8bf4-4, Tilburg University, School of Economics and Management.
    17. Van Campenhout, Bjorn, 2015. "The dynamics of smallholder marketing behavior: Explorations using Ugandan and Mozambican panel data:," IFPRI discussion papers 1478, International Food Policy Research Institute (IFPRI).
    18. Masud Rana & Keshav Lall Maharjan, 2022. "Participation of Brinjal Farmers in Large and Small Wholesale Markets: Factors Influencing Farmers’ Decisions and Impact on Producers’ Prices," Sustainability, MDPI, vol. 14(4), pages 1-20, February.
    19. Oliver Schulte & Trung Thanh Nguyen & Ulrike Grote, 2022. "The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2878-2898, December.
    20. Mwema, C. & Crewett, W. & Lagat, J. & Bokelmann, W., 2018. "Social Networks and Extent of African Leafy Vegetables Commercialization among Kenyan Smallholders: A Double Hurdle Approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277049, International Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:7699-:d:591548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.