Determinants of productivity and market access of smallholder vegetable farmers : a case study of spinach producers in Polokwane Local Municipality, Limpopo Province, South Africa

Abstract

Spinach (Spinacia oleracea) is an important cash crop, which remains one of the largest sources of income and a way of sustaining livelihoods for rural households in South Africa. Smallholder farming in most rural areas of the Limpopo Province contributes to food security. However, the majority of smallholder farmers experience low agricultural productivity, low quantities and poor quality produce which reduce their chances of accessing markets. Hence, this study focused on identifying and analysing factors that determine productivity and market access by smallholder spinach farmers in the Polokwane Local Municipality, Limpopo Province. This area of research is important towards the development of smallholder farming where resources are limited, but high population growth is very common. The overall objective of the study was to examine farm and farmer characteristics that determine the productivity and market access of the smallholder vegetable farmers. In order to achieve the aim and objectives of this study, a multi-stage sampling technique was used to select 80 smallholder spinach farmers to collect primary data from them using structured questionnaires. Cobb-Douglas production function was used to examine factors that determine productivity level and the Two limit Tobit Model was also used to analyse factors that influence market access. The results from the Cobb-Douglas production function indicated that smallholder farmers in the study area are experiencing a decreasing return to scale, which suggests that they are over-utilising factors of production. Two-limit Tobit Model results on the socioeconomic factors that influence market access indicated that household size was statistically significant at 10%, distance to the market, extension contact and farming experience were statistically significant at 5% and educational level, quantity produced and market information was statistically significant at 1%. Based on the findings, several policy suggestions were made. These include strengthening of farmers‟ organisation, provision of market information, regular extension visits and provision of training to the farmers.