Determinants of smallholder farmers' participation in cattle markets in Ngaka Modiri Molema district of the North West Province, South Africa

Thesis (M.Sc.(Agric Economics) North-West University, Mafikeng Campus, 2013

The study was designed to identify and get a better understanding of the determinants of Smallholder farmers' participation in cattle markets in the Ngaka Modiri Molema District of North West Province, A hundred and nine smallholder cattle farmers were randomly selected using the simple random sample method. The list of smallholder cattle farmers was obtained from the North West Department of Agriculture and Rural Development (Ngaka Modiri Molema District). Data was collected through the use of structured questionnaire that consisted of demographic characteristics market-related constraints encountered by smallholder cattle farmers, availability of infrastructure, access to market information, cattle production, cattle nutrition, cattle health, cattle husbandry, and reasons far keeping cattle and markets participated in by smallholder cattle farmers. The data was coded, captured and analysed using the statistical package for social science (SPSS) for frequencies, percentage and profit regression analysis. The results of the study show that the majority of the respondents in this research were male (72%): married (68%); Christians (74%); not formally educated 45°o; and having less than 10 years in farming (61%). The results highlighted that majority of the smallholder cattle farmers used informal markets to market their cattle (83%); mainly used auctions (58%) as a formal marketing channel and were mostly familiar with informal (62%) marketing channels. The farmers received higher prices (65%) from the cattle markets they regularly use and were nearer. The majority of smallholder farmers (55%) do not participate in the most rewarding channels. Majority of the smallholder cattle farmers were affected by, lack of support from government (96%); limited market information (95%); financial constraints (79%); (distance to mainstream markets (60%); and bureaucracy (62%). The results of probit regression model show that out of 15 independent variables considered, the coefficients for 5 variables' were statistical/v significant, These were the number of heifers (Z= 2, 742: P<P0. 05), smallholder cattle farmers keeping of farm records (Z=2. 611: P<0. 05), the number of years in farming (Z=2,45] P<0.01), level of education Z=-1. 745,' P<0.01) and smallholder farmers slaughtering of cattle and selling as carcass (Z- 1,899: P<0, 01).

Masters