Marketing channel preference among smallholder cocoyam farmers in South Africa

Abstract

Marketing channel choice makes important contri- butions to smallholder farmers’ incomes and other livelihood attributes in developing countries. Often considered from sev- eral perspectives, the dominant view articulated suggests an advantageous integration into formal market channels. This position is questioned as it has implications for smallholder farmers’ food security and rural incomes. Using a mixed- method approach, the study collected primary data from 174 smallholder farmers and applied both a descriptive and mul- tinomial logit regression model to analyze factors contribut- ing to cocoyam production and market channel choices of respondents in the study area. Findings indicate that financial returns and available markets were key factors in cocoyam production. At the same time, the amount received was a driv- er of market channel choice of 89% of respondents who sold directly at the farm gate. Farmers’ age (p = 0.044), household size (p = 0.043), distance to market (p = 0.021), additional income (p = 0.017), and amount received (p = 0.014) were significant variables (p < 0.05) in the determinants of mar- ket channel choice. The study recommends improving market information provision and strengthening farmer associations, enabling smallholder farmers in rural communities to make informed choices regarding production price, access other markets, and consolidate their collective market bargaining position.