Agricultural commercialization through market participation by smallholder tomato farmers in Bojanala District, North West Province

Abstract

The tomato (Solanum lycopersicum) is a significant crop with significant commercial market potential and health promise for farmers. If (1) the degree of commercialization; (2) commercialization indices; and (3) the level of market participation by smallholder farmers are properly understood, smallholder tomato farming could be improved. As a result, the primary aim of this study was to analyze the degree of agricultural commercialization and the volumes sold by tomato farmers in the Bojanala district of the North-West province. The study's specific objectives were to determine the volumes produced, marketed, and marketing channels currently employed by tomato producers; gauge their level of commercialization; and to outline the factors that influence their level of market participation in the Bojanala district. A cross sectional research design was employed to achieve the specific objectives of the study. The data was collected through a structured questionnaire consisting of four sections. In addition, the sections were namely demographic and socio-economic information, household resource ownership, marketing of produce and financial management. Descriptive statistics was employed to analyse objective (1) of the study by using frequency, percentage, mean, maximum value and minimum value. To analyse objective (2), commercialization index was computed by the gross value of sales over gross value of production. Tobit regression was used to analyse objective (3), where factors were extracted, which influence market participation. According to the descriptive findings, tomato producers in the research area range in age from 25 to 74, with an average age of 44. Furthermore, 50.54% of farmers were men, compared to 49.46% of households headed by women. Additionally, the findings of the descriptive analysis showed that 86.02% of tomato farmers sell at the farm gate and 90.32% sell to their neighbours, taking into account the fact that a farmer can sell at both places. On the other hand, it was discovered that 6 years is the average number of years spent in school. Tomato farmers in Bojanala attend school for a maximum of 17 years and for a minimum of 0 years. According to the commercialization index, 40,86% of farmers are subsistence farmers, 51,61% are semi-commercial farmers, and 7.53% are completely commercial farmers. The Tobit analysis showed that there is a 5% threshold of significance for years of farming experience, land area, number of tomatoes produced, and value of produce sold. This

suggests that each additional year of farming will lead to a 0.036 reduction in market participation. The Tobit model also demonstrates how land negatively affects smallholder tomato farmers' ability to participate in the market. The findings showed that market involvement decreased by 0.154 as land (Ha) increased. The data also showed a strong positive correlation between market participation and tomato production volume (Kg). The findings also indicated that market involvement rises by 0.763 when tomato production volume rises. Furthermore, it was discovered that market participation had a positive association with the value of produce sold (Kg). The findings also showed that as the value of produce sold increase so does market participation by 0.208. The study indicated that the average age of farmers was 44 years old, indicating a dearth of youth engagement in the studied area. Additionally, the findings indicated that as age increases, farmers will participate in markets less, suggesting that youth participation can boost market participation and eventually lead to a larger degree of commercialization. Additionally, this study argues that lack of extension services in the area has led to low volumes of tomato being produces as 93.55% of the farmers do not receive extension services. Furthermore, the study showed that majority of the farmers sell their produce near the farm or at the farm, this can be associated with high cost of reaching distant markets. Lastly, the study recommends that government creates high value market linkage programmes for smallholder farmers, government to improve extension services in the study area and encourage value adding activities by farmers.