Feed buying behaviour of small–scale broiler farmers

Abstract

The South African poultry industry is a large part of the agricultural industry and a very important contributor to the Agriculture’s Gross Domestic Product. Furthermore, this industry is expanding and very good growth is predicted for the next decade. This growth will take place in the formal as well as the informal segments of the industry. The informal segment holds a lot of potential for suppliers to supply in their growing needs. Due to the fact that broiler feed is seen as a large contributor to the total cost of broiler production, it is considered very important factor. If feed suppliers want to focus on the informal market, they need to understand the differences between commercial farmers and small–scale farmers and specifically the different needs of small–scale farmers. To develop a strategy to utilize the opportunities in the informal market, it is necessary to understand all the factors that influence the purchase behaviour of these farmers. A model of stimulus response is used to define the factors that may influence purchase behaviour. The factors that seemed important from the literature study are market and other stimuli. The market stimuli consist of product, price, promotion and place. The product aspect could further be divided into quality aspects, brand equity, and additional services that accompany the product. Other stimuli that could influence purchase behaviour are economic conditions, special event, climatic condition and the influence of culture. Data was collected by means of a questionnaire. Descriptive statistics and factor analysis were used on the data to determine which factors influence the small–scale farmers’ purchase behaviour. While the Kaiser Meyer Olkin measure, Bartlett’s test of shericity and Cronbach Apha were used to determine if the data is suitable to do a factor analysis on. Factor analysis was done to determine which factors are the most important. The seven significant factors that influence the purchase behaviour of small–scale farmers are: * Value for money and opportunity. * Perceived brand value. * Customer support and service. * Consensus on available quality. * Brand loyalty. * Feed price at the reseller. * Bag size. More research on this topic in a larger geographical area is required.