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Indexing participation in the market economy through factor analysis: Implications for food security

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  • Makhura, Moraka T.
  • Goode, M.F.
  • Coetzee, Gerhard K.

Abstract

The paper aims to determine patterns used by emerging farmers to participate in the market economy. The eight components of participation (six crop sales, livestock sales and off-farm earnings) were subjected to factor analysis. The results indicate that there are five sources of market participation; viz. sales of staples, cash crops, snacks, livestock and off-farm earnings. That is, participation in the market through one of the sources may or may not be preconditioned by another source. Implications for food security are that commercialisation of both maize and beans should be promoted to ensure starch and protein intake respectively, while cotton and vegetables will provide income and employment, livestock as a food risk management base, and off-farm income as a livelihood enhancing mechanism.

Suggested Citation

  • Makhura, Moraka T. & Goode, M.F. & Coetzee, Gerhard K., 1997. "Indexing participation in the market economy through factor analysis: Implications for food security," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-11, December.
    • Handle: RePEc:ags:agreko:54446
    DOI: 10.22004/ag.econ.54446
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    References listed on IDEAS

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    1. Shujie Yao, 1997. "Comparative Advantages And Crop Diversification: A Policy Analysis Matrix For Thai Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 211-222, January.
    2. Bullock, W. I. & Ortmann, G. F. & Levin, J. B., 1994. "Farmer Characteristics, Risk Sources And Managerial Responses To Risk In Vegetable Farming: Evidence From Large- And Small-Scale Commercial Vegetable Farmers In Kwazulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(3), September.
    3. Ford, Stephen A. & Shonkwiler, J. S., 1994. "The Effect of Managerial Ability on Farm Financial Success," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(2), pages 150-157, October.
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    Keywords

    Food Security and Poverty;

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