Analysing factors affecting the participation of small-scale cattle farmers in livestock auctions in Capricorn District of Limpopo Province

Abstract

Raising cattle in South Africa and any other developing country in the Southern African region as part of livestock production, is one of the important means through which people sustain their livelihood. Inadequate efforts have been taken by the government to improve the marketing system of cattle, particularly to develop small-scale farming in the Limpopo Province and South Africa as a whole. With that being said, the small-scale sector has not been developed to the extent it is expected to. This study examined the factors affecting the participation of small-scale cattle farmers in livestock auctions in the Capricorn District of the Limpopo Province. The study had three objectives, namely; (i) To describe the socio-economic characteristics of the small scale cattle farmers in the Capricorn District of the Limpopo Province; (ii) To assess the perception of small-scale cattle farmers in the Capricorn District of the Limpopo Province towards livestock auction; (iii) To identify and analyse factors affecting the participation of small-scale cattle farmers in livestock auctions in the Capricorn District of the Limpopo Province. The Multi-stage sampling procedure was used in the selection of the representative sample. Three locations (Lepelle-Nkumpi, Molemole and Polokwane local municipalities) were selected purposively because a large number of small-scale cattle farmers in the Capricorn District rely on the agricultural sector economically. The Logistic Regression Model was used to analyse factors affecting the participation of small-scale cattle farmers in livestock auctions. The results showed that, out of the 120 sample size, 42% of small-scale cattle farmers were auction participants and 58% of small-scale cattle farmers were non-participants . There were 43 male-headed households of the participants and 61 female-headed households of the non-participants . An analysis of the farmers ’ socio-economic characteristics further showed that in order for the farmers to cut the costs of production, the majority of the small-scale cattle farmers preferred using family labourers or household labourers in their cattle farming. Farmers were asked a set of Likert type scale questions about their perceptions on the auctions. The Perception Index score ii was skewed to the left and therefore revealed that the small-scale cattle farmers had a negative perception towards the auction. Farmers who had a positive perception, on the other hand, often sold their cattle at a higher price compared to the non-participants who had a negative perception. Furthermore, small-scale cattle farmers who are participants tend to use the market avenue and through that, their cattle productivity is higher, resulting in a total revenue compared to the non-participants. Consequently, small-scale farmers who participate in auctions acquire valuable production information at the very auctions. Descriptive statistics such as means, minimum and maximum values, frequencies, percentages and standard deviations were used to describe the socioeconomic characteristics of the small-scale cattle farmers in the Capricorn District of the Limpopo Province. The results revealed that only 4 variables were significant. The total herd size, distance to the market, gender of the household head and market information were significant at 1%, 5%, 1%, 5%, respectively and all had a positive effect towards auction participation. The study suggested that the government and other policy makers should increase the marketing information and abilities of small-scale cattle farmers through avenues like mass media, extension service and other means of capacity building. This will help the farmers to minimise transaction costs. Furthermore, farmers will not incur more costs when they participate in the markets, considering that market facilities such as auctions are often hosted far from the farmers, which results in farmers incurring more costs.