Determinants of emerging small-scale pig farmers' participation in high value markets in Dr Kenneth Kaunda District, South Africa

Abstract

This study analyses determinants of small-scale pig farmer's participation in high value/mainstream markets. The study was conducted in Dr Kenneth Kaunda District Municipality. The Dr kenneth Kaunda District is divided into four municipality, a selection of participants was stratified in to four parts selected from 40 to 20 pig farmers per municipality. A stratum was used as an administative units then random sampling was used to select participants for the study. (stratified rondom sampling). A structured questionnaire was used to collect data and analysis was done using the Statistical Package for Social Sciences (SPSS) version 20. The results shows that farmers sell their products to low value markets; those who sell in high value markets do so through middlemen, even though they have over 5 years expirience and sell first grade products. The biggest constraints faced by pig farmers are lack of access to marketing information for high value markets, poor market infrastracture, high transport cost and the least are lack of finance and lack of storage. Farmers who participate in high value markets are faced with high transaction costs and levies at auctions and abattoirs. It was found that in order to increase farmers 'annual farm income and access to high value markets, farmers have to increase their breeding herd, have adequate knowledge on the requirements of high value markets, reduce transport cost and maintain contact with extension services. The probit model was used to determine the influence of the independent variables on emerging small-scale pig farmers' participation in high value markets. The model has a good fit and was significant at 1%. Eight explanatory variables were significant while the other seven variables were insignificant. There is a I 00% probability of income surplus which could be used to increase the number of breeding stock and provide better opportunities for participation in high value markets. The recomendation are: that small-scale emerging farmers should be provided with adequate information and be trained on the standands set by high value markets. Establishment of new and strengthening of existing producer organisations and cooperatives towards collective action, enhancement of extension officers 'capacity and services, youth and women involvement in pig farming. It is concluded that improving farmer 's knowledge on high value market standards and reduction on transaction cost would increase their likelihood to participate in high value market.