Skip to main content

Influence of institutional factors on smallholder farmers ’ marketing channel choices

  • Chapter
Institutional constraints to small farmer development in Southern Africa

Abstract

Smallholder farmers are faced with a range of institutional challenges in produce marketing. In turn, these challenges influence their selection of marketing channels. In this chapter, a multinomial logistic regression model was used to test the significance of institutional factors in marketing. Te results are based on a case study for smallholder farmers in the Kat River Valley, in South Africa. It is shown that the statistically significant variables are access to market information, expertise on grades and standards, availability of contractual agreements, existence of extensive social capital, group participation and reliance on traditions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 69.95
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Delgado, C. (1999). Sources of growth in smallholder agriculture in sub-Saharan Africa: the role of vertical integration of smallholders with processors and marketers of high-value added items. Agrekon 38 (Special Issue), 165–189.

    Article  Google Scholar 

  • Dorward, A., J. Kydd, J. Morrison and C. Poulton (2005). Institutions, markets and economic development: Linking development policy to theory and praxis. Development and Change 36, 1–25.

    Article  Google Scholar 

  • FAO (2004). Changing patterns of agricultural trade. Te evolution of trade in primary and processed agricultural products. Available at: http://www.fao.org/docrep/007/y5419e/y5419e05.htm.

  • Farolf, S. and K. Rowntree (2005). Negotiation and game theory for water management in the Kat Basin, South Africa: Development of a cooperative game theory model and a comparison with a role-playing game results derived of a negotiation approach. Available at: http://www.ceepa.co.za/docs/Desole.pdf.

  • Fenwick, L.J. and M.C. Lyne (1999). Te relative importance of liquidity and other constraints inhibiting the growth of small-scale farming in KwaZulu-Natal. Development Southern Africa 16, 141–155.

    Article  Google Scholar 

  • Gujarati, D. (1992). Essentials of econometrics. MacGraw-Hill: New York, USA.

    Google Scholar 

  • Hill, R.C., W.E. Grifths and G.G. Judge (2001). Econometrics (2nd Edition). John Wiley and Sons, New York, USA.

    Google Scholar 

  • Kherallah, M. and J. Kirsten (2001). Te new institutional economics: applications for agricultural policy research in developing countries. Markets and Structural Studies Division, Discussion paper No. 41, International Food Policy Research Institute, Washington, DC, USA.

    Google Scholar 

  • Magni, P. (1999). Physical description of the Kat River valley. Geography Department, Rhodes University, Grahamstown, RSA.

    Google Scholar 

  • Makhura, M.T. (2001). Overcoming transaction costs barriers to market participation of smallholder farmers in the Northern Province of South Africa. Unpublished PhD thesis, University of Pretoria, Pretoria, RSA.

    Google Scholar 

  • Matungul, P.M., G.F. Ortmann and M.C. Lyne (2002). Marketing methods and income generation amongst small-scale farmers in two communal areas of KwaZulu-Natal, South Africa. Paper presented at the 13th International Farm Management Congress, Wageningen, the Netherlands.

    Google Scholar 

  • McMaster, A. (2002). GIS in participatory catchment management: a case study in the Kat River Valley, Eastern Cape, South Africa, Unpublished MSc thesis, Rhodes University, Grahamstown, RSA.

    Google Scholar 

  • Motteux, N. (2001). Te development and co-ordination of catchment fora through the empowerment of rural communities. Catchment Research Group. WRC Report K5/1014. Water Research Commission, Pretoria, RSA.

    Google Scholar 

  • Nel, E.L. (1998). An evaluation of community driven economic development, land tenure and sustainable environmental development in the Kat River Valley. Report to the Programme for Human Needs, Resources and the Environment, HSRC Publishers, Pretoria, RSA.

    Google Scholar 

  • Nel, E., T. Hill and T. Binns (1997). Development from below in the ‘ new ’ South Africa: the case of Hertzog, Eastern Cape. Te Geographical Journal 163, 57–64.

    Article  Google Scholar 

  • O ’Sullivan, A., D. Shefrin, and S. Perez (2006). Economics: principles, applications and tools (5th Edition). Prentice Hall: New York, USA.

    Google Scholar 

  • Pundo, M.O. and G.C.G. Fraser (2006). Multinomial logit analysis of household cooking fuel choice in rural Kenya: Te case of Kisumu district. Agrekon 45, 24–37.

    Article  Google Scholar 

  • Reardon, T. and C. Barrett (2000). Agro-industrialization, globalization, and international development: An overview of issues, patterns, and determinants. Journal of Agricultural Economics 23, 195–205.

    Google Scholar 

  • Smit, T. (2003). Catchment management forums in the Eastern Cape Province of South Africa. Available at: http://campus.ru.ac.za/download.php?actionarg=986.

  • Takavarasha, T. and T.S. Jayne (2004). Toward improved maize marketing and trade policies to promote household food security in Southern Africa. Available at: http://www.aec.msu.edu/maizemarket/JayneTakavarashaSummary.pdf.

  • Wynne A.T. and M.C. Lyne (2003). Rural economic growth linkages and small scale poultry production: a survey of poultry producers in KwaZulu-Natal. Paper presented at the 41st Annual Conference of the Agricultural Economic Association of South Africa (AEASA), Pretoria, RSA.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Wageningen Academic Publishers

About this chapter

Cite this chapter

Jari, B., Fraser, G., Obi, A. (2011). Influence of institutional factors on smallholder farmers ’ marketing channel choices. In: Obi, A. (eds) Institutional constraints to small farmer development in Southern Africa. Wageningen Academic Publishers, Wageningen. https://doi.org/10.3920/978-90-8686-704-2_5

Download citation

Publish with us

Policies and ethics