Effects on marketing channel choice on the profitability of smallholder vegetable farmers in Leribe District of Lesotho

Abstract

Smallholder vegetable farming has the potential to improve the income of farmers due to the profitability associated with the choice of proper marketing channel. Vegetables profitability vary across different marketing channels. The study sought to assess the effects of market channel choice on the profitability of smallholder farmers in Leribe district Lesotho. Specifically, the study identified the marketing channels used by smallholder vegetable farmers, identified factors influencing the choice of vegetable marketing channel, as well as determined the profitability of selling vegetables through each of the marketing channels in Leribe district of Lesotho. A stratified simple random sampling technique was used to select a sample of one hundred and eleven (111) respondents in the study area. Cross-sectional data was then collected from smallholder vegetable farmers with the use of closed-ended questionnaire. The data was processed with the use of Statistical Package for Social Science (SPSS) and Ms. Excel. The data was analysed using descriptive and inferential statistics (Pearson` Chi-square test), binary logistics regression as well as gross marginal analysis. The results revealed that smallholder vegetable farming in the study area was mainly dominated by young, aged female farmers. The identified marketing channels were the formal and informal marketing channels with most (71.05%) farmers in Leribe district using the informal marketing channel. Time of payment (p=0.033) and price determination factor (p=0.030) were the factors that influenced the choice of vegetable marketing channel. The study further affirmed that sales of vegetables through formal marketing channel was more profitable than sales through the informal marketing channel in the study area. Based on the results, the study recommends the formulation of agricultural policy in Lesotho to incorporate the promotion of farmers access to formal markets and capacity building of extension officers on agricultural production and marketing in order to assist farmers to produce according to formal market requirements.