FACTORS AFFECTING MARKETING DECISIONS IN THE MAIZE SUPPLY CHAIN AMONG SMALLHOLDER FARMERS IN SWAZILAND

Abstract

The objective of this paper is to identify factors influencing the decision to sell maize and the choice of marketing chain by smallholder farmers in Swaziland. The logistic regression is applied on the smallholders' decision either to sell or not to sell maize and the type of supply chain (either formal or informal). The results indicate that the decision to sell or not to sell maize is influenced by income from off farm activities, past experience with marketing channel, access to agricultural information through news papers, participation in agricultural schemes, family members without education, and farm size. While the choice of maize marketing chain is influenced by transportation costs and farm size. Therefore efforts to maize farmers to easily access agricultural information in a manner that they can understand would have to be encouraged. Also policies that would enable farmers to organize themselves and organize their marketing activities to reduce transportation costs and increase the area under cultivation can ensure efficient utilization of the formal markets, and subsequently improve the fanners' income.