Factors Influencing the Extent of the Commercialization of Indigenous Crops Among Smallholder Farmers in the Limpopo and Mpumalanga Provinces of South Africa

Abstract

Smallholder farmers encounter countless challenges that not only restrict them from maximizing market opportunities but also limit their access to the markets. This paper aims to achieve a thorough understanding of the factors that influence the market participation of indigenous crops by smallholder farmers while also analyzing the extent of market participation in South Africa. An analyzable sample size of 1,520 was used for the study. Household commercialization index (HCI), T-test, description analysis, and a double hurdle model with quasi-maximum likelihood fractional response model were employed to analyze the commercialization and extent of commercialization among indigenous crops by smallholder farmers in South Africa. The study demonstrated that a farmer's decision to participate in the market is highly dependent on gender, off-farm income, access to market information, and a family member being infected by HIV. Factors such as household size and access to the market had statistical significance in the extent of market participation by smallholder farmers. While we recommend the need to intensify appropriate training for farmers and extension workers involved in the area of indigenous crops, it is also important that indigenous crops are given the necessary considerations by the government and research institutions so that their demand in the market could increase. There is a need to develop a clear support plan for the few farmers that have decided to be involved in the farming of indigenous crops even though they are not highly marketable. On the other hand, there is also a need for consumer awareness campaigns in South Africa, on the income and nutritional benefits of indigenous crops.