Full Length Research Paper

Patterns of access and utilization of output markets by emerging farmers in South Africa: Factor analysis approach

G. M. Senyolo¹*, P. Chaminuka¹, M. N. Makhura² and A. Belete³

1Department of Agricultural Economics, University of Limpopo, South Africa.

²Agricultural Economic Research and Innovation Services (AERIS), Land and Agricultural Development Bank of South Africa, South Africa.

³Department of Agricultural Economics, University of Limpopo, South Africa.

*Corresponding author. E-mail: GRANYS@ul.ac.za .

Accepted 3 February, 2009

   Abstract

Based on the data collected from 500 emerging farmers that were randomly selected from nine provinces of South Africa, this study determines the patterns of access and utilization of output market by emerging farmers in South Africa. Factor analysis was applied on twenty components of output markets in South Africa. The results show that there are patterns that are observable in terms of access and use of output market by emerging farmers. The most commonly used output markets by emerging farmers are family and friends, the fresh produce markets as well as public stores. The study reveals that farmers tend to sell their produce to public stores as most of these stores are close to the farming communities. Friends and family also provide an important market outlet for produce by emerging farmers. Improving road conditions and transport services in rural areas will not only improve accessibility of external markets, but will also improve accessibility of local output markets.

Key words: Emerging farmers, factor analysis, market access, output market, South Africa.