Determinants of marketing participation and choice of market outlet for broiler farmers in Leribe district of Lesotho

Abstract

Poultry marketing is an important tool for economic development and poverty eradication because of its potential for income generation and employment creation. However, broiler farmers in the country are locked out of available lucrative formal broiler markets and this forces them to sell their produce at the farm gate where prices are less lucrative. Therefore, this study examined the socio-economic, market and institutional factors that influence broiler farmers’ market participation and the choice of market outlets in the Leribe district in Lesotho. A two-stage sampling technique was employed to select 114 respondents from five villages. The survey data was collected through a structured questionnaire. Heckman's two-stage model was used to analyse factors influencing farmers' market participation and the intensity of market participation while the MVP model was used to determine factors affecting the choice of market outlets by broiler farmers. The probit selection equation revealed that gender, farmer income, storage access, production experience, extension service, credit access and information access influenced farmers’ market participation decisions and the second outcome equation revealed that gender, household size, off-farm employment and price influenced the intensity of market participation. The MVP model results revealed that gender, vehicle ownership, stock size contract agreement and extension access significantly influenced the choice of market outlets. Therefore, this study recommends interventions that will increase broiler production such as enhancing credit access, contract farming, group membership and institutional support. The study also recommends policies that will facilitate the adoption of quality assurance practices and procedures to improve farmers’ access to the formal markets.