Factors Influencing Market Participation by Smallholder Farmers in Masvingo and Manicaland Provinces, Zimbabwe

Markets play a critical role in economic development and strengthening market participation by smallholder farmers in both input and output markets is critical for the development of smallholder agriculture in Zimbabwe. This study analyzes the determinants of output markets participation in Masvingo and Manicaland provinces using data from a random sample 479 smallholder farmers. Market participation is very low with only 19% of the sample farmers participating in output markets. Results of the binary logistic regression show that the variables that have a positive and significant effect on outputs market participation are age of the head of household, the size of the household, the level of education of the head of household, the household agricultural income, the degree of farm specialization, access to irrigation, access to draft power, on demand extension service, quality of extension support, distance of the farm from the nearest rural business centre and tenure. Gender of the head of household, the level of education of household members, farming experience, the block training approach, the level of dependency, the farmer to farmer extension approach and household members with off-farm employment significantly and negatively influence market participation. In order to enhance smallholder farmers’ participation in output markets, the study recommends that policy intervention efforts must primarily focus on expanding access to irrigation and draft power as well as improving the quality of extension support services for the farmers.