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A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini

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  • Sicelo Ignatius Dlamini

    (Department of Tropical Agriculture and International Cooperation, National Pingtung University of Science and Technology, Pingtung 912, Taiwan)

  • Wen-Chi Huang

    (Department of Agribusiness Management, National Pingtung University of Science and Technology, Pingtung 912, Taiwan)

Abstract

Beef cattle farmers are in an ideal position to advance their income through marketing; however, the subsector is characterized by low market participation. Wealth preservation and prestige from cattle accumulation outweigh market incentives, thereby jeopardizing the integration of farmers into organized market systems. Therefore, the study was set to examine the determinants of farmers’ sales decisions in cattle marketing. Understanding determinants of sales decisions is an indispensable base for establishing sustainable development policy frameworks that maximize rural economic growth. Descriptive statistics and a double-hurdle model were applied on cross-sectional data collected from 397 farmers through personal interviews aided by a structured questionnaire. Herd size (74.1%), ecological zone (32.4%), slaughters (22.1%), pregnant cows (18.2%), experience (15.0%) and breed type (11.4%) revealed statistically significant effects on the probability of market participation. The key determinants of the level of market participation ( p < 0.01) included extension, married marital status, pasture availability, cows, heifers, market distance, market information and market channel 2 (individual). Education, experience, non-farm income, expenses and laborers were significant at p < 0.05. Widowed marital status and market channel 1 (processor) were found to be significant at p < 0.1. Extension adjustments and institutionalization of market linkages are recommended to assist farmers in increasing marketable surplus.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5185-:d:269483
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    3. Mandefro Seifu & Jema Haji & Temesgen Keno & Dawit Diriba, 2023. "Determinants of nonfarm livelihood diversification: evidence from farmers in Ilu Abba Bora zone, Southwestern Ethiopia," SN Business & Economics, Springer, vol. 3(8), pages 1-16, August.

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