Factors influencing smallholders participation in agricultural markets in Southern Niassa, Mozambique.
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Date
2005
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Abstract
Government, donors and NGOs in southern Niassa have been, after the 1992 peace
agreement, extensively involved in agricultural development programmes to improve
smallholders' food security. A study of the area and literature review revealed that many
factors limited the benefits of agricultural market development programmes. Yet,
opportunities in southern Niassa suggested that appropriately designed programmes could
improve the standard of living of smallholders if these programmes were designed on a
solid understanding of factors and strategies influencing agricultural market participation by
smallholders.
The main research hypothesis of this study was that: smallholders would participate in
agricultural markets when their wealth status was high, when they had enough available
household labour and when cash crops were profitable." Four main hypotheses were
investigated: (i) factors and strategies identified through smallholder perceptions would
provide local and time specific information on the constraints and solutions to smallholder
market participation; (ii) wealth status and wealth-ranking factors were positively related to
market participation where agriculture was the main economic activity as in southern
Niassa; (iii) labour aspects such as crop labour requirements (CLR) could be negatively
related, while available household labour (AHL) and the ratio AHL/CLR could be
positively related to smallholders cultivation of cash crops and subsequent participation in
agricultural markets; and (iv) aspects of profitability and indicators could be used to predict
smallholder cash crop preferences.
Data for this study were collected in Cuamba district of Mozambique from nine focus group
discussions (FGDs) with community leaders, 287 household-head questionnaires and staff
interviews during September 2002. Nine villages were randomly selected. The leaders'
FGDs provided the criteria utilised to rank households according to wealth status and much
of the qualitative information of this study. The wealth-ranking tool was used to identify
and analyse the socio-economic factors that influenced smallholder market participation. A
follow-up interview of managers of promoting institutions also provided greater insight on
some aspects raised by smallholders. The study employed (i) descriptive statistics such as
means and frequencies; (ii) correlation analysis and standard scores (iii) qualitative analysis
was also used for some wealth-ranking, perceived labour demand and aspects of
profitability influencing cash crop cultivation, preference and market participation based on
information from FGD, farmers and staff; and (iv) simple mathematical expressions for
analysis and interpretation of the research findings.
This study relied on perceptions, knowledge and experience of smallholders, leaders and
leaders of promoting institutions. Smallholder-suggested factors and strategies were in line
with the limitations of socio-economic characteristics such as low effective household
labour, particularly for females. These strategies included an improvement in outputs and
inputs markets, agricultural services and credit at a subsidised prices or low interest rates.
Other strategies for improving smallholders' participation in agricultural markets included
promotion of profitable cash crops, household food security, provision of extension support
services and information about cultivation and agricultural markets. However, smallholders
did not identify some factors that have been acknowledged to influence agricultural market
participation: ecological and natural resources, policies, institutional infrastructures and
physical infrastructures. Smallholders also did not mention socio-economic factors (except
household labour) as influencing their decisions to participate in agricultural markets in
spite of the fact that researchers assume these factors in almost every study on smallholder
market participation.
The findings of this research confirmed that a wealth-ranking tool could be used to identify
the socio-economic factors affecting smallholders' participation in agricultural markets. The
identified wealth-ranking factors such as labour, livestock number, implements and bicycles
significantly correlated with wealth status and subsequently to smallholder agricultural
market participation. Conversely, household socio-economic characteristics not indicated as
wealth-ranking factors such as age and gender related poorly to market participation. The
wealth-ranking tool could also be used to identify strategies for improving smallholder
participation in agricultural markets, and to evaluate an agricultural market development
programme.
The study found that, other factors being held constant, CLRs were negatively related to
market participation. Weeding was the most labour intensive operation followed by
harvesting, soil preparation, transportation, land clearing and seedling preparation. It also
found that AHL and the ratio AHL/CLR were positive and significantly related to market
participation. The ratio AHL/CLR together with household consumption requirements and
yield were used to estimate the total area a household could cultivate, both for food crops
for consumption and for cash crops; the proportion of farmers likely to participate in the
market; and those unable to cultivate enough for consumption.
The research also confirmed that profitability-related aspects correlated to cash crop
preferences. Yield was the most important factor that influenced smallholders' preference
for cash crops. It was also found that indicators incorporating more aspects of profitability
correlated strongly with cash crop preferences. The correlation increased as more aspects
were incorporated. A crop, such as tobacco, with a profit of more than twice the profit for
food cash crops was preferred more than food cash crops. The indicators and underlying
aspects of profitability were used to interpret the current and projected cash crop preference.
Description
Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.
Keywords
Agriculture--Economic aspects--Mozambique., Agriculture and state--Mozambique., Farms, Small--Mozambique., Farmers--Mozambique., Farm produce--Mozambique--Marketing., Agricultural produce--Mozambique--Marketing., Theses--Community resources.