Analysis of Market Outlet Choice by Smallholder Beef Cattle Farmers in Eswatini

Abstract

Beef cattle marketing assumes a central position in the rural development discussion and economic growth in Eswatini. However, scantiness in empirical assessment on market outlet choice undercuts the establishment of pro-poor market systems for improved livelihoods. Therefore, this study sought to determine the drivers of beef cattle market outlet choice. The Snowball-purposive sampling technique was conducted to collect data, through personal interviews guided by a structured questionnaire, from a sample of 328 farmers. Descriptive statistics and multinomial logit regression were used for data analysis. The results indicate that 51.83%, 42.38% and 5.79% of the farmers marketed through the processor-butcher, direct and feedlotter outlets, respectively. Education and exotic breeds were associated with the feedlotter outlet. Vectors of marketing and production-related factors are the main drivers of market outlet choice. Pasture availability revealed statistical significance at p < 0.01, while off-farm employment and cooperative membership were significant at p < 0.05. The proportions of cows and oxen in the herd were significant at p < 0.1. The study recommends farmer-training and protection of pastures to advance selection of formal outlets. Cooperativism is a suggested mechanism for creating farmers’ bargaining power. A conducive market framework is required for the promotion of formal market outlets.

Keywords: market outlet choice, beef cattle, multinomial logit model, Eswatini

DOI: 10.7176/JESD/11-8-03

Publication date: April 30^th 2020