Determinants of market choice and strategies adopted by small-scale pig producers in redline areas of Mpumalanga Province, South Africa : a fractional outcome-tobit model approach

Abstract

Different studies indicate that accessing a market is one of the frustrating challenges encountered in small-scale pig farming. The market within the pig farming sector is regarded as competitive, with small-scale farmers having to confront many constraints, which impede their bargaining position within the market. Although several studies on market channels have been carried out, there has not been any on piggery farming in South Africa. Thus, this study was carried out among small-scale pig farmers located in a redlined area in Mpumalanga province, where the government prohibits the unauthorized movements of animals. The research aims to explore the existing market channels and factors that influence the decision and choice of the market channels used by smallscale pig farmers. Cross-sectional data were collected, descriptive statistics, the Tobit and fractional outcome response models were adopted to identify the determinants of the choice of marketing channel used by the farmers. The descriptive statistics show that about 38% of the pig farmers engaged in the local market, 21% used abattoir, and 33% adopted auction as a market channel. Furthermore, the results from the two models showed similar significant factors, indicating that there is little or no variation in the two models. The study recommends that access to veterinary services and having the right breed to avoid market discrimination, among others, should be considered to overcome the challenges related to market channel choice among small-scale pig farmers.