1. Conclusion/Recommendations
SOCIO-ECONOMIC FACTORS INFLUENCING MARKET PARTICIPATION OF HORTICULTURAL SMALLHOLDER FARMERS IN THE ALFRED NZO DISTRICT, EASTERN CAPE PROVINCE
M.V Kekana¹, P. Maponya1&2 & G. Senyolo3
1Agricultural Research Council, Vegetable and Ornamental Plant, Pretoria, Gauteng
2University of Johannesburg, Department of Geography, Environmental Management and Energy Studies,
Johannesburg, Gauteng
³Department of Crop Sciences, TUT, Private Bag X680, Pretoria, 0001, South Africa
Introduction
Results
Most smallholder farmers in the Alfred Nzo district were characterized by poor resources such as land, infrastructure and capital while they play an important role in poverty alleviation in the district. Smallholder farmers were increasingly recognized because of their contribution to household food security and job creation for rural communities. The horticultural markets in South Africa are increasingly tightening their standards due to changes enforced by the agricultural legislations which are tightening food safety and quality standards requiring compliance with sanitary standards. As a result, smallholder farmers were unable to keep up with such high market standards changes hence they are demotivated to participate. Furthermore, the viability of these smallholder producers were constrained by a number of factors which included lack of access to information, high marketing standards, low produce quality and lack of critical storage facilities, etc. These barriers have contributed to the exclusion of smallholder farmers from formal markets.
Coefficient (B)
Wald
Sig.
Exp(B)
NUMBER OF BENEFICIARIES
.065
.942
.332
1.067
AGE
.004
.005
.941
1.004
LAND SIZE
-.144
.251
.616
.866
DISTANCE TO MARKET
-.065
2.702
.100
.937
EDUCATION LEVEL
-2.742
2.089
.148
.064
LAND ACQUISITION
.098
.003
.953
1.103
GENDER
.442
.091
.763
1.555
PRODUCTION CONTRACT
22.970
.000
.999
TRANSPORT TO MARKET
11.639*
3.282
.070*
MARKET INFORMATION
-3.549*
3.604
.058*
.029
TYPE OF ROAD
5.436**
4.976
.026**
ACCESS TO FUDING
-.348
.057
.811
.706
Constant
Model Summary
Step
-2 Log likelihood
Cox & Snell R Square
Nagelkerke R Square 1
23.026a
.560
.769
Aim(-s)
The main aim of the study was to identify socio-economic factors influencing market participation of horticultural smallholder farmers in the Alfred Nzo district. Such an analysis would influence policy makers to tailor make policy specific for agricultural development in the district.
* Significant at 10% level of probability. ** Significant at 5% level of probability
Discussion
The results showed that the statistically significant variables at five percent (5%) and ten percent (10%) level were access to market information, type of road and availability of transport to market. These findings suggested that an adjustment in each one of the significant variables can significantly influence the probability of participation in formal marketing channels.
Material and methods
The study used secondary data collected by the Agricultural Research Council and the Department of Rural Development and Land Reform in January A total of 48 horticultural smallholder farmers from Ntabankulu, Matatiele, Umzimvubu and Bizana local municipalities within the Alfred Nzo district were interviewed using a structured questionnaire. SPSS was used for analysis. Descriptive and Binomial logistic regression analysis were applied to determine the socio-economic factors influencing smallholder farmer’s decisions to utilize formal markets.
Conclusion/Recommendations
In view of the research findings, several policy proposals were suggested. In order to address these obstacles and encourage smallholder farmers to utilize high value markets, the government and private sector should establish a model specific to the actual needs of smallholder farmers of the Alfred Nzo district, which should include a clear communication system between farmers and potential market representative. Furthermore, a well-coordinated transporting system is required which must be designed specifically for smallholder farmers within the district.