DETERMINANTS OF MARKET PARTICIPATION BY SMALLHOLDER CATTLE FARMERS AND THE INSTITUTIONAL CONSTRAINTS TO MARKET PARTICIPATION IN BOTSWANA: CASE STUDY OF KWENENG WEST By Kgosikoma R.K., and Malope, P.

Introduction Livestock production in Botswana accounts for over 80% of agricultural GDP. The beef sector dominates livestock sector in terms of both output and employment. The communal grazing system accounts for 88% of the national herd (Statistics, Botswana, 2012).

Introduction However, the off-take rates in communal areas through formal markets remain relatively low at 8.26% compared to 15.79% from commercial farming. Low off-take rates attributed to: ◦ Alternative income sources ◦ Institutional constraints ◦ Transaction costs ◦ Availability of marketable surplus

Introduction Marketing channels: ◦ formal (butcheries, BMC) ◦ Informal (sale to individuals for home ceremonial purposes) Constraints to formal market participation for smallholder farmers: ◦ Socio-economic ◦ Technical ◦ Institutional

Methods Study area: Kweneng West ◦ Main economic activity: livestock farming ◦ 8 livestock extension areas Study design: cross sectional survey using the face-to-face administration method. Sampling: multi-stage sampling procedure used to select a sample of 132 livestock farmers in the Kweneng West sub-district. Data collection: 3-part structured questionnaires.

Theoretical Framework

Empirical Model

Results Table 1: Results Table 1: Summary Statistics of the Explanatory Variables VariableMeanMinimumMaximumStd. Dev. Household endowment ARAB HERD NONFARMINC OWNTRANS SMLSTCK Transaction costs/ Information Access DISTMKT DISTRD PRICEINFO MRKTNCRS Household characteristics GENDER HHSIZE AGEHH EDU YRSFARM CROPS Market Shock DIED Dependent Variable CTSOLD

Results Table 2: Factors Influencing Participation in the Cattle Market VariableParameter EstimateOdds Ratio AGEHH (0.033)**0.937 EDU None (reference) Some primary Diploma Other (1.249)** (3.676)* (2.063)* CROPS1.855 (0.849)**6.390 HERD0.022 (0.013)*1.022 DISTMKT0.007 (0.003)**1.007 PRICEINFO1.570 (0.748)**4.806 MRKTCRS (1.608)**0.037 DIED0.232 (0.126)*1.261 CONSTANT2.177 (2.400)

Institutional Constraints Table 3: Institutional Constraints to Market Participation Table 4: Frequency of Difficulties in Meeting BMC Requirements Frequency/Variabl e BolusDVS-permitPolice PermitBMC Quota Total More frequent Frequent Less frequent Total

Conclusions Important determinants of cattle market participation: age, education, mixed cropping, herd size, distance to the market, access to price information and market shock. Bolus requirement most problematic institutional constraint. Farmers advocate for efficiency in the provision of services to meet institutional requirements in cattle markets.

Recommendations Continued investment in agricultural youth programs. Mixed agricultural practices should also be encouraged. Publishing agricultural commodity prices by the Ministry of Agriculture and cattle marketing channels should be maintained. Efficient service provision in the supply and use of cattle identification devices.