Factors affecting the choice of marketing outlet selection strategies by smallholder farmers in Swaziland

Abstract

This paper explores smallholder vegetable farmers’ marketing channel selection decisions using data collected from a sample of 140 farmers from Manzini and Hhohho regions of Swaziland. Multivariate probit analysis was applied to examine the determinants of marketing channels participation. The results show that the marketing outlets are substitutes, suggesting that farmers select one over the other. The selection decision is influenced by risk attitude, assets ownership, institutional variables, transaction cost and market attributes. Therefore, it is important that policymakers and other stakeholders invest in quality extension services, programmes to improve marketing information and infrastructure development to enhance smallholder market participation.

Keywords:

• multivariate probit model
• NAMBoard participation
• supermarket participation
• traditional market participation