A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini

Beef cattle farmers are in an ideal position to advance their income through marketing; however, the subsector is characterized by low market participation. Wealth preservation and prestige from cattle accumulation outweigh market incentives, thereby jeopardizing the integration of farmers into orga...

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Bibliographic Details
Published in:Sustainability 2019-10, Vol.11 (19), p.5185
Main Authors: Dlamini, Sicelo Ignatius, Huang, Wen-Chi
Format: Article
Language:English
Subjects:
Agricultural economics
Bargaining
Beef
Beef cattle
Cattle
Decisions
Determinants
Developing countries
Development policy
Economic development
Economic growth
Farm income
Farmers
Farming
Food security
Health facilities
Land degradation
LDCs
Livestock
Marketing
Meat industry
Microprocessors
Pasture
Population growth
Poverty
Preservation
Production increases
Sales
Small farms
Statistical analysis
Sustainability
Sustainable development
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Summary:Beef cattle farmers are in an ideal position to advance their income through marketing; however, the subsector is characterized by low market participation. Wealth preservation and prestige from cattle accumulation outweigh market incentives, thereby jeopardizing the integration of farmers into organized market systems. Therefore, the study was set to examine the determinants of farmers’ sales decisions in cattle marketing. Understanding determinants of sales decisions is an indispensable base for establishing sustainable development policy frameworks that maximize rural economic growth. Descriptive statistics and a double-hurdle model were applied on cross-sectional data collected from 397 farmers through personal interviews aided by a structured questionnaire. Herd size (74.1%), ecological zone (32.4%), slaughters (22.1%), pregnant cows (18.2%), experience (15.0%) and breed type (11.4%) revealed statistically significant effects on the probability of market participation. The key determinants of the level of market participation (p < 0.01) included extension, married marital status, pasture availability, cows, heifers, market distance, market information and market channel 2 (individual). Education, experience, non-farm income, expenses and laborers were significant at p < 0.05. Widowed marital status and market channel 1 (processor) were found to be significant at p < 0.1. Extension adjustments and institutionalization of market linkages are recommended to assist farmers in increasing marketable surplus.
ISSN:2071-1050
2071-1050
DOI:10.3390/su11195185