Market participation of smallholder sunflower farmers in North-West province, South Africa

Abstract

In South Africa and other parts of sub-Saharan Africa, market participation of smallholder farmers are rapidly being advocated as a means to achieve the United Nations Sustainable Development Agenda’s (SDGs): zero hunger and no poverty. Yet little is known about market participation in the sunflower industry. The study therefore, examine market participation of smallholder sunflower farmers in Ngaka Modiri Molema District Municipality, North West Province, South Africa. A quantitative research approach was developed to address the research objectives, and a proportional stratified random sampling technique was used to select 177 sunflower producing households. Respondents information were captured using semi-structured questionnaires, data were then entered and coded using statistical software computer programs (MS Excel, SPSS, and Stata). Socio-economic characteristics, level of market participation, and factors influencing households market participation within the district were analyzed using descriptive statistics, household commercialization index, and probit regression model. Overall, the result indicates that respondents exhibited high level of commercialization (90.1 % market participants). While, the result of the probit regression model shows that eight (8) of the regressors were statistically significant. Variables such as age (Coef = 0.103, p<0.01), gender (Coef = 1.267, p<0.05), market outlet (Coef = 1.351, p<0.01), access to information (Coef = 1.298, p<0.05), and quantity sold in tons (Coef = 0.015, p<0.010) were found to have positive and statistically significant influence, while household size (Coef = -0.409, p<0.01), market distance (Coef = 0.618, p<0.010) and land tenure system (Coef = -1.541, p<0.05) were found to have a negative but statistically significant impact on market participation among respondents. The pseudo R2 of the probit model is 0.5199, indicating that the model matches the dataset and the regressors accurately explains 51.99 % of the variation. The overall goodness of fit measures of the probit model was determined using postestimation test for predictive margin. With a high significant chi-square value of (p<0.0001), the result correctly predicted a 90 % likelihood of respondents to participate in the market. The findings suggests that rural-based initiatives and intervention programs be developed to boost households' access to finance, grants, and diversified markets for effective market competitiveness, while there is a greater need for proper awareness, supports, and partnerships focused on promoting women and youth participation in the sunflower sector across the district.