Effect of Transaction Costs on Marketing of Small Scale Maize Farming in Limpopo Province


  •  Majory Meliko    

Abstract

The deregulated and highly competitive nature of current South African markets has created new barriers for capital-poor emerging farmers. Many of these barriers are related to the cost of transacting. A linear regression model and a Multinomial logit regression model were used to predict the hypotheses that transaction costs affect the quantity sold and that factors that affect transaction cost affects market integration respectively on farmers who produce maize. From the analysis, road access, membership in a marketing institution, land size, unit price and ownership of irrigation technology affects the quantity of maize sold. While the nature of the road (P-value, 0.043) and knowledge of price (p-value, 0.000) were the two factors affecting market integration. A possible solution for the problem is the establishment of an information and communication technology centre for price dissemination and produce aggregation.



This work is licensed under a Creative Commons Attribution 4.0 License.
  • Issn(Print): 1916-9752
  • Issn(Onlne): 1916-9760
  • Started: 2009
  • Frequency: monthly

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(The data was calculated based on Google Scholar Citations)

  • Google-based Impact Factor (2016): 2.28
  • h-index (December 2017): 31
  • i10-index (December 2017): 304
  • h5-index (December 2017): 22
  • h5-median (December 2017): 27

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