Market access productivity of smallholder maize farmers in Lepelle Nkumpi Municipality, Limpopo Province, South Africa

Thesis (M.Sc. Agric. (Agricultural Economics)) -- University of Limpopo, 2018

Agriculture is the backbone and a very important sector of the South African economy. This is because it provides food and employment to a lot of people in the country especially those living in the rural areas. Smallholder farmers also play an important role in livelihood creation and also alleviation of poverty among the population in Limpopo province, but despite this, their productivity is low. A decline in agricultural productivity reduces market access resulting from low quality and quantity of produce by smallholder farmers which invariably affect their accessibility to market. This study therefore examined the determinants of market access and productivity among smallholder maize farmers in Lepelle-Nkumpi municipality using the Probit model and Cobb Douglass production functions. While the Probit regression model was used to analyse the effect of socioeconomic characteristics of smallholder maize farmers on market access, the Cobb Douglass production function was used to examine the determinants of productivity among the farmers in the study area. The results of the Probit regression analysis indicated that farm size, hired labour and maize produced per hectare had positive significant influence on probability of farmers accessing markets. Farm size and maize produced per hectare were statistically significant at 1% and hired labour was statistically significant at 5%. The results of Cobb Douglas Production Function indicated that the elasticities of market access, farm experience, fertilizers, capital and membership of association were significant and positive. Based on the study findings, it is recommended that farmers should be provided with market infrastructure and marketing information services. This will help the farmers in a way that the transaction cost will be minimised and farmers will not incur more cost when they participate in the markets. Farmers in the study area indicated that transportation cost is the major challenge facing them. This is because of the poor conditions of roads in the study area. Therefore, the study recommends that there should be inputs subsidy that helps farmers to improve their productivity.