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Determinants of Smallholder Cattle Farmers’ Participation in Livestock Auction Markets: Evidence from Polokwane Local Municipality, Limpopo Province

Author

Listed:
  • Maekela, K. F.
  • Baloi, V. A.
  • Mokhaukhau, J. P.
  • Hlongwane, J. J.
  • Senyolo, M. P.

Abstract

It is argued that auctions for cattle are the most advanced marketing channel which also generally offer better prices, but however, literature indicates low numbers of cattle being marketed through this channel. This study was aimed at analysing the determinants of smallholder cattle farmers’ participation in livestock auction markets. The specific objectives were to identify and describe the socio-economic characteristics of smallholder cattle farmers located in the Polokwane Local Municipality and, to analyse factors influencing the participation in livestock auction markets by smallholder cattle farmers in the study area. Primary cross-sectional data was collected using snowball and purposive sampling techniques with the aid of a structured questionnaire from 50 smallholder cattle farmers. Analysis was carried out using STATA version 15. The findings of this study indicate a low auction market participation by smallholder cattle farmers in the study area. The probit regression results revealed that age, gender, household size, farming experience, and herd size have a statistical influence on the probability of participation in livestock auction markets by the farmers. Recommended interventions include institutional capacity building among farmers in the study area, investment in specialized agricultural production and support programmes and finally, investment in programmes of alleviating stock theft.

Suggested Citation

  • Maekela, K. F. & Baloi, V. A. & Mokhaukhau, J. P. & Hlongwane, J. J. & Senyolo, M. P., 2023. "Determinants of Smallholder Cattle Farmers’ Participation in Livestock Auction Markets: Evidence from Polokwane Local Municipality, Limpopo Province," 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa 364845, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae23:364845
    DOI: 10.22004/ag.econ.364845
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    References listed on IDEAS

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    1. Ndoro, Jorine & Mudhara, Maxwell & Chimonyo, Michael & Hitayezu, Patrick, 2015. "Farmers' Choice of Cattle Marketing Channels in Rural South Africa: A Transaction Cost Economics Perspective," 2015 Conference, August 9-14, 2015, Milan, Italy 212526, International Association of Agricultural Economists.
    2. Emily Ouma & John Jagwe & Gideon Aiko Obare & Steffen Abele, 2010. "Determinants of smallholder farmers' participation in banana markets in Central Africa: the role of transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 111-122, March.
    3. 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(01), pages 1-17, March.
    4. Mohd Suhaimi, Nurul Aisyah & de Mey, Yann & Oude Lansink, Alfons, "undated". "A transaction cost analysis of Malaysian dairy farmers' marketing channel selection," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261436, European Association of Agricultural Economists.
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