Commercialization and Household Welfare among Smallholder Goat Farmers in Kweneng East Sub-District, Botswana

Abstract

Agriculture plays a major role in Botswana’s economy and for the majority of the 2.3 million Batswana. Majority of Batswana are either directly or indirectly engaged in agriculture and derive their livelihood therein. Most smallholder farmers in Botswana rely on small stock specifically goats, for much of their livelihood. However, the level of commercialization is still very low and much of the production is majorly under traditional and subsistence systems, with a few who are commercialized. Subsistence farming system may not be a viable option to ensure food security and household welfare hence inadequate to support farmers’ livelihood. Goat commercialization may enhance local production and possibly enable the country to export goat meat in addition to beef exports. This study aimed at analyzing commercialization and its effects on smallholder farmers’ welfare as well as factors influencing the choice of marketing outlets. A multistage sampling technique was used to select 266 goat farmers who were interviewed using a semi-structured questionnaire. Fractional Response, Multivariate Probit and Endogenous Switching Regression models were used to achieve the set objectives. The results show that the level of commercialization was driven by contract arrangements and type of breed, among others. Results further show that most farmers (93%) preferred to sell their goats to individual consumers, with the least preferred being butcheries at 12%. The choice of marketing outlet was significantly influenced by farming experience, years of schooling, access to credit, distance to market, type of breed and access to a reliable market. Finally, the results of the Average Treatment Effects show a positive effect of commercialization on household income for both commercialized and non-commercialized farmers. The results underscore the importance of collective action and a reliable small stock market in enhancing commercialization. The development of a centralized market such as Botswana Meat Commission for small stock, especially in catchment areas with large number of goats could provide an assured market. Further, creating awareness and promoting contract farming and other relevant market coordination mechanisms for improved market access would be an added advantage.