Determinants of market participation and effects on household income among small-scale indigenous chicken farmers in Kweneng East District, Botswana

Abstract

Poultry farming is pivotal to rural livelihoods and smallholder farming. Indigenous chickens, within poultry farming, are essential for boosting household income and food security even though farmers of these chickens remain impoverished. One possible reason for this is their limited participation in profitable markets. The aim of the study was to improve household income of small-scale indigenous chicken farmers by promoting their participation in profitable markets in Kweneng East District, Botswana. Specifically, this study aimed at identifying preferred indigenous chicken market outlets and their price differentials. It also determined the factors influencing market participation and the intensity of participation among small-scale indigenous chicken farmers, and the factors influencing the choice of market outlets among small-scale indigenous chicken farmers. Additionally, it examined the effects of market participation on household income among small-scale indigenous chicken farmers. A multi-stage sampling approach was applied to obtain a sample of 276 indigenous chicken farmers and the data was collected through a semi-structured questionnaire. Descriptive statistics was used to identify the preferred market outlets and their price differentials. Majority, about 30% indigenous chicken farmers, prefer a farm gate as a market outlet. Restaurants offer higher prices, BWP 103.24 (USD 7.39) and BWP 143.33 (USD 10.26) for hens and cocks, respectively, than other market outlets. The double hurdle model revealed that access to market information significantly influences the decision to participate by 1.062 at 1% and the intensity to participate. Multivariate Probit results revealed that off-farm income positively influenced the choice of farm gate market at 1% and market bargaining power had a positive statistical influence on the choice of all market outlets at a 1% significance level. The Average Treatment effect on the treated results of the endogenous switching regression model revealed that market participants would earn less (23 472 BWP) if they did not participate in the market and non-participants would earn 22 274 BWP if they had decided to participate and this shows the effect of market participation on the household income of farmers. The study recommends farmer collaboration to enhance collective marketing and access to diverse market outlets by indigenous chicken farmers. The study also suggests the improvement of access to public extension offices and road and transport networks to high value markets for upgrading the indigenous chicken farming industry.