Market Participation and Volume Sold: Empirical Evidence From Irrigated Crop Farmers in the Eastern Cape

Abstract

The market partaking of smallholder farmers in market-oriented production has the perspective to expand profits, upsurge agricultural output and ultimately promote food security. However, the participation of smallholder’s irrigators and homestead gardeners in markets in South Africa remains low despite numerous interventions, especially since the dawn of democracy in 1994. However, up-to-date, there is not enough evidence that these attempts had been met successfully. This paper examines factors influencing smallholders’ choice to partake in markets and volume sold in the Eastern Cape Province. The study employed survey data of 150 irrigated crop farmers. A random sampling procedure was used in the study areas. The study used a Heckman regression to assess factors impelling market participation and volume sold. Results reveal that market participation and volume sold are influenced by socio-economic and technical factors. Based on the results, the needed policy change to encourage group marketing and upgrading of roads to enable smooth accessibility of output markets are highlighted.