Overcoming Transaction Costs Barriers To Market Participation Of Smallholder Farmers In The Northern Province Of South Africa
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Overcoming Transaction Costs Barriers To Market Participation Of Smallholder Farmers In The Northern Province Of South Africa
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Author : Moraka Thomas Makhura
language : en
Publisher:
Release Date : 2013
Overcoming Transaction Costs Barriers To Market Participation Of Smallholder Farmers In The Northern Province Of South Africa written by Moraka Thomas Makhura and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013 with categories.
The objective of this study is to investigate the role of transaction costs in determining market participation of smallholder farmers. It is expected that the identification of these transaction cost factors could assist in the formulation of policy interventions and/or institutional innovations to alleviate constraints on market participation and improve the ability of these small-scale farmers to become part of the commercial agricultural economy. Transaction costs differ between households due to asymmetries in access to assets, market information, extension services and remunerative markets. The study particularly investigated the factors contributing to different levels of transaction costs amongst households. The main hypothesis of the study is that small-scale farmers facing lower transaction costs will participate more in agricultural markets. Transaction costs reflect the character of the market, but are mainly embedded in the characteristics of individual households and their economic environment. In order to test the hypothesis, selectivity models identifying and testing significant factors related to market participation are applied to a survey of 157 farming households in the Northern Province. These households take part in the markets for horticulture, livestock, maize and other field crops. The selectivity models used involve two-step estimation similar to the Heckman's two-stage procedure. The study reveals that access to assets and market information in combination with particular household characteristics are important determinants of market participation. Among the assets of a household, a reasonably sized area of arable land tends to encourage participation in all markets, apart from the market for other field crops market. Ownership of livestock tends to stimulate livestock selling and also the level of maize sales. Ownership of arable land and livestock contribute to the economies of scale of production, which leads to lower transaction costs per unit output sold. Non-farm earnings only alleviate variable transaction costs in horticultural markets, but not in other field crops markets. Pensions discourage participation in high value commodities markets since they are viewed as alternative cash income. Indicators enhancing the role of information access include proximity to markets and contacts with the extension service. Proximity to markets reduces variable transaction costs in horticultural markets and fixed transaction costs in livestock markets. The study shows that every kilometre closer in proximity to markets, the horticultural sales increase by R152. Proximity and contact with extension services discourage participation in other field crops markets. Good road conditions reduce transaction costs for livestock and other field crops. The study also shows that in spite of bad road conditions some horticulture farmers still manage to market most of their products. A larger sized household tends to increase the transaction costs in marketing all commodities except for the other field crops. Female farmers tend to participate more in livestock markets as they own small livestock and poultry that are easy to sell, and keep livestock for livelihood purposes rather than for social status. On the other hand, female farmers appear to be constrained in their participation in horticultural markets, ostensibly due to problems of access to irrigation resources and cultural and legal perceptions. Older farmers with enough social capital are willing to sell, but in horticulture and maize they tend to sell lower quantities. The study raises issues which, when attended to, might reduce the transaction costs, particularly by enhancing access to information and providing endowments to farming households. Some constraints require direct policy measures, such as policies dealing with land reform, extension services, education and legal reforms, and then there are those that require indirect intervention and private sector involvement such as road networks and market availability.
Institutional Constraints To Small Farmer Development In Southern Africa
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Author : Ajuruchukwu Obi
language : en
Publisher: Springer Science & Business Media
Release Date : 2011-04-27
Institutional Constraints To Small Farmer Development In Southern Africa written by Ajuruchukwu Obi and has been published by Springer Science & Business Media this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-04-27 with Science categories.
The Southern Africa region has experienced more than its fair share of problems in recent years. Just when it seemed that the hardships wrought by the devastating cycle of droughts and floods of 2000 to 2002 were a thing of the past, other problems emerged. At one level, there have been the weak and often erratic governance mechanisms and political crises in some countries of the region, leading to severe disruptions in agricultural production to the point that supplies and markets have virtually disappeared. At another level, socio-cultural rigidities have often militated against the adoption of efficient farming practices, resulting in sub-optimal choices that lock smallholders into a low equilibrium trap. In the face of the disappearing supplies and missing markets, these have engendered hyper-inflationary trends of a magnitude unknown anywhere else in the world. But in the midst of all this apparent dreariness, cases are emerging from which immense lessons can be drawn. This book assembles a collection of research papers based on studies completed in 2008 and 2009 in Southern Africa that examine various dimensions of the institutional constraints small farmers are facing in the region and how they are going about dealing with them. The papers draw from these diverse and polar experiences and present some theoretical and practical insights that should form the basis for more in-depth, country-level, sector-specific analyses, focusing mainly on citrus, horticultures, cotton and livestock. The thematic issues of income inequality, land reform, natural resource management and value chain governance and chain choice, are covered in this book and are expected to be of interest for a wide constituency, including researchers, development practitioners, rural animators, and policy makers.
Interdependence Of Smallholders Net Market Positions In Crop And Livestock Markets
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Author : Moti Jaleta
language : en
Publisher: ILRI (aka ILCA and ILRAD)
Release Date : 2011-01-01
Interdependence Of Smallholders Net Market Positions In Crop And Livestock Markets written by Moti Jaleta and has been published by ILRI (aka ILCA and ILRAD) this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-01-01 with categories.
Unlocking Markets To Smallholders
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Author : Herman D. van Schalkwyk
language : en
Publisher: Springer Science & Business Media
Release Date : 2012-03-10
Unlocking Markets To Smallholders written by Herman D. van Schalkwyk and has been published by Springer Science & Business Media this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-03-10 with Science categories.
This book assesses the institutional, technical and market constraints as well as opportunities for smallholders, notably, emerging farmers in disadvantaged areas such as the former homelands of South Africa. Emerging farmers are previously disadvantaged black people who started or will start their business with the support of special government programs. Public support programs have been developed as part of the Black Economic Empowerment strategy of the South African government. These programs aim to improve the performance of emerging farmers. This requires, first and foremost, upgrading the emerging farmers skills by providing access to knowledge about agricultural and entrepreneurial practices. To become or to remain good farmers they also need access to suitable agricultural land and sufficient water for irrigation and for feeding their cattle. Finally, for emerging farmers to be engaged in viable farming operations, various factors need to be in place such as marketing and service institutions to give credit for agricultural inputs and investments; input markets for farm machinery, farm implements, fertilizers and quality seeds; and accessible output markets for their end products. This book develops a policy framework and potential institutional responses to unlock the relevant markets for smallholders.
Integrated Approaches To Higher Maize Productivity In The New Millennium
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Author :
language : en
Publisher: CIMMYT
Release Date : 2004
Integrated Approaches To Higher Maize Productivity In The New Millennium written by and has been published by CIMMYT this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Corn categories.
The Influence Of Market Access On Land Use In Central Sulawesi Indonesia
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Author : Adhitya Wardhono
language : en
Publisher: Cuvillier Verlag
Release Date : 2007
The Influence Of Market Access On Land Use In Central Sulawesi Indonesia written by Adhitya Wardhono and has been published by Cuvillier Verlag this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007 with categories.
Oecd Review Of Agricultural Policies South Africa 2006
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Author : OECD
language : en
Publisher: OECD Publishing
Release Date : 2006-04-19
Oecd Review Of Agricultural Policies South Africa 2006 written by OECD and has been published by OECD Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006-04-19 with categories.
OECD's first comprehensive OECD review of agricultural policies in South Africa, this book presents an overview of South Africa's agricultural policies combined with an assessment of the level of support provided to South Africa's agriculture.
Effect Of Buyer Type On Market Participation Of Smallholder Farmers In Northern Ghana
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Author : Agness Mzyece
language : en
Publisher:
Release Date : 2016
Effect Of Buyer Type On Market Participation Of Smallholder Farmers In Northern Ghana written by Agness Mzyece and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
Transaction costs, one of the most significant barriers to market participation, may vary by buyer type. Depending on who a farmer sells their produce to, they may alter their potential transaction costs consequently influencing their market participation. This study examines the effect of buyer type on smallholder market participation in Northern Ghana where poverty is still endemic and often exacerbated by fewer opportunities for commercialization such as limited access to markets. The analysis is based on data from the agriculture production survey conducted in 2013 and 2014 and the Population based Survey conducted in 2012 in northern Ghana. Analysis is performed using the Double Hurdle approach to control for self-selection bias, ensure more flexibility on the variables affecting the decision to sell and how much to sell as well as to provide unconditional effects of the variables on market participation. The results reveal greater market participation of cash crop producing farmers than those producing a lower value food crop - Maize. The results also show that farmers selling to aggregator-type middlemen and other buyers have a propensity to sell more. The aggregators and 'other buyers' buy in bulky, offer lower prices and are associated with lower transport, loading and offloading costs than consumers. Farm output, access to information and price also have a significant positive impact on intensity of market participation. These findings support policy initiatives such as supporting aggregator-type middlemen, increasing the provision of information, promotion of cash crops as well as supporting more interventions focusing on increasing production and yields.
Land In The Struggles For Citizenship In Africa
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Author : Moyo, Sam
language : en
Publisher: CODESRIA
Release Date : 2015-12-01
Land In The Struggles For Citizenship In Africa written by Moyo, Sam and has been published by CODESRIA this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-12-01 with Political Science categories.
The variety of land questions facing Africa and the divergent strategies proposed to resolve them continue to evoke debates. Increasingly, in response to the enduring problems of land tenure, there are land movements of all shapes and orientations, some reformist and others quite revolutionary in their agenda. However revolutionary, land movements have tended to ignore the land tenure interests of women, pastoralists, youth and indigenous people. Several of these longstanding and emerging issues in land tenure include the role of the state in land tenure reforms; urban land questions, the nature of land struggles and improvements; and, the impact of land tenure developments on particular social groups and countries. An overarching concern is the extent to which land rights are being commodified, through the conversion of land held under customary tenure systems into marketised systems. The consequences of this include growing land concentration, land tenure insecurities, diminishing access to land by various sections of society, including the poor, women and less dominant ethno-religious groups. This volume brings together different studies on Africa's land questions exploring emerging land issues on the continent in terms of the wider questions of development, citizenship, and democratisation. The chapters discuss the land question through a variety of themes. Some focus on the agrarian aspects of the land questions, while others elucidate the urban dimensions of the land question.
The Challenge Of Change
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Author : Lieb Nieuwoudt
language : en
Publisher: University of Kwazulu Natal Press
Release Date : 2003
The Challenge Of Change written by Lieb Nieuwoudt and has been published by University of Kwazulu Natal Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003 with Business & Economics categories.
This book is a collective effort by leading South African researchers in agricultural economics. The book reviews policies and challenges in the agricultural economy which aim to promote equitable participation and transformation for a better future. South Africa is faced with urgent challenges: inequality has to be replaced with equity; poverty needs to be substantially reduced; living standards need to be improved; and growth needs to be maintained while keeping production internationally competitive. The agricultural sector has a crucial role to play in the process of achieving growth with equity. This book examines: structure and production in agriculture; income and employment growth in rural areas, including land distribution; agricultural marketing; water usage and food security; international trade and agricultural finance; research and development policy; and trade patterns in the Southern African Development Community (SADC). South African agriculture is currently characterized by a commercial modern sector, an emerging farmer sector and a subsistence sector. The strategic plan for South African agriculture is to unite these sectors into a prosperous agricultural industry. This book suggests policies that will enhance this process and ensure that agriculture continues to produce food at reasonable prices, earning foreign exchange and providing income to the rural poor.