CHAPTER 5 THE EFFECTS OF GRAIN STORAGE TECHNOLOGIES ON MAIZE MARKETING
5.3 Results and discussions
5.3.2 Smallholder farmers‟ decisions on market participation
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Table 5.4: Ordered probit results with marginal effects Independent
variables
Coefficient estimate
standard error
Net Buyer dy/dx(1)
Autarkic dy/dx(2)
Net Seller dy/dx(3) insecticide
storage
0.47844** 0.19440 -0.05349*** -0.00927ns 0.06276***
Age -0.00517 0.00653 0.00058ns 0.00010ns -0.00068ns
Educyears 0.03010 0.03157 -0.00346ns -0.0006ns 0.00406ns location
(Shamva)
-0.75118*** 0.21921 0.08398*** 0.01456ns -0.09854***
Gender 0.45121** 0.20190 -0.05045** -0.00874ns 0.05919**
mar_status -0.71400** 0.28981 0.07982** 0.01384ns -0.09366***
market location 3.25097*** 0.45177 -0.36346*** -0.06301ns 0.42647***
extension_acc 0.21957 0.18731 -0.02455ns -0.00426ns 0.02880ns hh_size 0.00965 0.03239 -0.00108ns -0.00019ns 0.00127ns QMZE_harvested 0.00008* 0.00005 -8.57e-06* -1.49e-06ns 0.0001*
Perc_loss -0.00360 0.487 0.00040ns 0.00007ns -0.00047ns own_cell -0.14043 0.23671 0.01570ns 0.00272ns -0.01842ns
A1 0.86302** 0.35232 -0.09649** -0.01673ns 0.11321**
Communal 0.73552** 0.29131 -0.08223*** -0.01426ns 0.09649***
Old resettlement 0.89813*** 0.27835 -0.10041*** -0.01741ns 0.11782***
Other storage 0.36201 0.22478 -0.04047ns -0.00702ns 0.04759ns land size 0.00959 0.02853 -0.00107ns -0.00019ns 0.00126ns
N 413
Wald chi2(17) 131.21
Log pseudo
likelihood
-172.09521
Source: own study. ***; **; *; ns indicate statistical significance at 1%, 5%, 10% level, and not significant, respectively
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The coefficient of gender was positive and statistically significant (p=0.05). This suggests that male households were more likely to be net sellers or autarkic compared to being net maize buyers, ceteris paribus. This is expected as female-headed households are often resource constrained thereby affecting their production of a marketable surplus and are also more likely to be concerned about securing food for consumption for the family than for sale.
The marginal effects indicated that being a male-headed household increased the probability of being a net maize seller by 5.9% while it reduces the probability of being autarkic and a net maize buyer by 1% and 5%, respectively. Thus gender is a significant determinant of maize market participation behaviour of smallholder farmers and this result correspond with the findings of Hlongwane et al . (2014). Hlongwane et al . (2014) found that gender has a positive and significant influence on market participation of maize farmers in South Africa.
Contrary to this, Egbetokun et al. (2017) found that gender had a significant but negative influence on market participation of maize farmers in Nigeria.
Marital status of the household head was also statistically significant but had a negative influence on market participation (p=0.1). This implies that married farmers were more likely to be net maize buyers compared to being autarkic or net maize sellers, ceteris paribus.
Married farmers are more concerned about being self-sufficient and feeding their households than their counterparts. Results of the marginal effects indicate that being married reduces the probability of being a net seller by 9% while increasing the probability of participating in the market as a net buyer and autarkic by 8% and 1%, respectively. Egbetokun et al. (2017) found a similar result in a study on determinants of market participation among maize farmers in Nigeria. Therefore, marital status is a significant determinant of maize market participation decisions of smallholder farmers.
Market location coefficient was positive and its influence on market participation decisions was statistically significant (p = 0.001). Farmers find it easier to sell their maize locally than to transport it to distant markets. This implies that the availability of local markets induces farmers to produce more maize hence their net selling position as compared to distant markets. The lower transaction costs associated with local markets influence farmers to be net maize sellers than to be net buyers. Results of the marginal effects show that local markets increase the probability of being a net seller by 43% while reducing the probability of being autarkic and net buyers of maize by 6% and 36%, respectively. This result is in line with other empirical studies on transaction costs which established that distance is inversely
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related to the decision to participate in the output markets (Key et al., 2000; Alene et al., 2008). Therefore, development of local markets in smallholder farming areas is one factor that can boost market participation of farmers. Policies that target upgrading of rural roads and other transportation networks are highly recommendable.
The coefficient of the quantity of maize harvested was positive and statistically significant (p=0.1) in influencing market participation decision options of smallholder farmers in the study area. Farming households with higher quantities of maize grain were more likely to participate in the maize market as net sellers than as autarkic or net buyers, ceteris paribus.
Amount of harvest directly determines the amount of grain available for household consumption as well as a marketable surplus. The average marginal effects result indicate that a unit increase in the amount of maize harvested is likely to increase the probability of a household being a net seller by about 0.0001 while reducing the probability of being a net buyer and autarkic by 8.57 and 1.49, respectively. Thus the quantity of maize harvest is a significant determinant of market participation behaviour of smallholder farmers as noted in other studies (Geoffrey et al., 2013; Muricho et al., 2015). Policies that boost production of maize at the household level are key to promoting participation of smallholder households in maize markets.
All the variables related to the type of farming sector were positive and statistically significantly influenced farmers‟ market participation decisions options; A1 model (p=0.05), Communal (p=0.05), and old resettlement (p=0.001). The results indicate that farmers from all the three farming sectors were more likely to be autarkic than net buyers and were more likely to be net sellers than autarkic, ceteris paribus. Production of maize is higher in these farming sector areas than in the small-scale commercial farming areas, the base outcome category. The marginal effects show that farms located in the A1 model farming sector increase the probability of farming households to be net maize sellers by 11% while reducing the probability of farming households to be autarkic and net buyers by 2% and 10%
respectively. Being a communal farming household reduces the probability of being a net maize buyer and autarkic by 8% and 1%, respectively while increasing the probability of being a net maize seller by 10%. Being an old resettlement farming household also increases the probability of being a net maize seller by 12% while reducing the probability of being autarkic and a net maize buyer by 2% and 10%, respectively. The district location dummy (Shamva) variable was negative and statistically significantly (p=0.001) determined farmers‟