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Factors enhancing market participation by small-scale cotton farmers

Author

Listed:
  • 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), December.
  • Handle: RePEc:ags:agreko:47656
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    File URL: http://purl.umn.edu/47656
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    References listed on IDEAS

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    1. Govereh, Jones & Jayne, Thomas S., 1999. "Effects of Cash Crop Production on Food Crop Productivity in Zimbabwe: Synergies or Trade-offs?," Food Security International Development Working Papers 54670, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
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    Citations

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    Cited by:

    1. Moono, Lizzen, 2015. "An Analysis of Factors Influencing Market Participation Among Smallholder Rice Farmers in Western Province, Zambia," Research Theses 243459, Collaborative Masters Program in Agricultural and Applied Economics.
    2. 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);Agricultural Economics Association of South Africa (AEASA).
    3. 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.
    4. Bola Amoke Awotide & Aziz A. Karimov & Aliou Diagne, 2016. "Agricultural technology adoption, commercialization and smallholder rice farmers’ welfare in rural Nigeria," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-24, December.
    5. Mukundi, Eric & Mathenge, Mary K. & Ngigi, Margaret, 2013. "Sweet Potato Marketing Among Smallholder Farmers: The Role of Collective Action," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160679, African Association of Agricultural Economists (AAAE).
    6. Mofokeng, Maine & Vink, Nick, 2013. "Factors Affecting the Hedging Decision of Maize Farmers in Gauteng Province," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161465, African Association of Agricultural Economists (AAAE).
    7. repec:spr:ssefpa:v:9:y:2017:i:4:d:10.1007_s12571-017-0688-9 is not listed on IDEAS
    8. 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).
    9. Mujawamariya, Gaudiose & D'Haese, Marijke, 2012. "In search for incentives to gum arabic collection and marketing in Senegal: Interlocking gum trade with pre-finances from traders," Forest Policy and Economics, Elsevier, vol. 25(C), pages 72-82.
    10. 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.

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