Factors influencing market access perception and farm income of smallholder citrus farmers in South Africa.
Mabala, Sekgoadi Gift
Mabala, Sekgoadi Gift
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Abstract
Smallholder farming is increasingly recognized because of its contribution to food security, poverty alleviation, and job creation for rural communities. The contribution of smallholder farming to the improvement of the general welfare can only be achieved if the farmers have access to profitable markets to allow them to earn a fair share of market returns (farm income). However, smallholder farmers in South Africa and other developing countries often have limited access to markets which negatively affects the farm income they earn. Poor infrastructure such as storage facilities, lack of market transport at local areas and inability to conclude contractual agreements are some of the factors limiting smallholder farmers from accessing markets. The objective of the study was to examine factors influencing market access perception and farm income of smallholder citrus farmers in South Africa. Using 2018/19 secondary cross-sectional data collected by the National Agricultural Marketing Council (NAMC), the study employed principal component analysis (PCA) and multiple linear regression for data analysis. In total, there was a sample of 68 smallholder citrus farmers drawn from the database of the Citrus Growers Association Grower Development Company (CGAGDC), which contains 121 smallholder citrus farmers. A non-probability (convenience) sampling technique was used to select farmers that were conveniently available and willing to participate. The empirical results showed that education, household size and income, size of the farm, access to loans, access to market information, and access to packhouses had a positively significant influence on farm income. These findings suggest that an improvement in each of the significant variables can significantly improve the farm income of smallholder farmers. Additionally, empirical results showed that land ownership, market information, and access to packhouses positively influenced the market access perception of smallholder farmers. In conclusion, based on the empirical results of the study, policy recommendations are suggested, including improving access to land, market information, infrastructure, and last of all improving access to packhouses for farmers to practice value adding contributes towards marginalization of farm income and access to output markets.
Description
Dissertation submitted in fulfilment of the requirements for the degree of Masters of Science in Agriculture (Agricultural Economics), Department of Crop Sciences, Faculty of Science at the Tshwane University of Technology
Date
2022-11
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Tshwane University of Technology
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Keywords
smallholder farmers, market access, farm income, multiple linear regression, perception