Analysisng the determinants of tomato commercialisation by smallholder farmers in Mogalakwena Local Municipality, Limpopo Province, South Africa

Abstract

Tomatoes are a key crop in South Africa, contributing significantly to vegetable production and consumed in both fresh and processed forms. Despite their importance, smallholder tomato farmers face multiple challenges, including limited resources, difficulty in meeting market standards, post-harvest losses, and poor infrastructure. Although commercialisation has the potential to improve rural incomes and reduce poverty, participation among smallholders remains low due to limited credit, market access, and inconsistent government support. Despite Limpopo being the largest producer, smallholders earn low profits and often fail to meet market demands, leading to imports. The study aimed to investigate the dynamics of tomato commercialisation among smallholder farmers in Mogalakwena Municipality, Limpopo Province. The study sought to: (i) profile the socio-economic characteristics of smallholder tomato farmers, (ii) assess the perceptions of smallholder farmers towards tomato commercialisation, (iii) determine the levels of tomato commercialisation and (iv) analyse the factors influencing tomato commercialisation in the area. Primary data were collected from 61 purposively selected smallholder tomato farmers using a structured questionnaire. Descriptive statistics was used to address the first objective while the Household Commercialisation Index (HCI) measured the level of commercialisation. A probit regression model identified factors influencing commercialisation, and a Likert scale captured farmers’ perceptions on the subject. Descriptive statistic results revealed that majority of the smallholder tomato farmers in Mogalakwena Municipality (62%) were men, while 38% of the families were headed by women. Probit regression model results revealed that variables such as marital status, transportation, tractor, and cost of fertiliser were significant at 1% and other variable (income) was significant at 10%. The probit model effectively identified the significant predictors of commercialisation among tomato farmers. Key socio-economic (e.g., income, marital status), institutional (e.g., payment structure, government support), and production-related (e.g., transport, mechanisation, and inputs) variables influence market participation. Variables such as land size, household income, market information, and meeting formal market requirements were statistically insignificant. However, they may still indirectly influence commercialisation through interaction with other factors like infrastructure or institutional support. Therefore, they had a positive influence towards commercialisation of the produce. Household Commercial Index of 28% reflects a low level of commercialisation, meaning that smallholder tomato farmers in Mogalakwena are not yet fully benefiting from the potential income and economic growth that market-driven farming could offer. Addressing this gap could significantly improve household income and livelihoods. The low HCI among smallholder tomato farmers in Mogalakwena is driven by infrastructure, finance, logistical, and knowledge-based constraints. Overcoming these barriers will require targeted interventions in market development, infrastructure, input access, farmer support services, and land policy reforms to enable greater commercialisation. According to the Likert model, results shows that only 9.8% of farmers strongly agreed that having access to extension services helped to raise the degree of tomato production’s commercialisation. Nevertheless, the findings indicated that the value of the quality-made tomatoes was 3.3% because of the quantity of tomatoes produced. The study suggests that market linkage programmes emphasizing training, quality, reduced barriers, and fair pricing alongside infrastructure, information systems, and certifications like SAGAP and Global GAP, can boost smallholder commercialisation, formal market access, and income stability.