Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana

Eunice Adu Donkor, Elena Garnevska, Muhammad Imran Siddique and Emmanuel Donkor
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Eunice Adu Donkor: School of Agriculture and Environment, Massey University, Palmerston North 4442, New Zealand
Elena Garnevska: School of Agriculture and Environment, Massey University, Palmerston North 4442, New Zealand
Muhammad Imran Siddique: School of Agriculture and Environment, Massey University, Palmerston North 4442, New Zealand

Sustainability, 2021, vol. 13, issue 9, 1-14

Abstract: Enhancing smallholder farmers’ access to reliable, ready, and direct marketing channels is a prerequisite for sustainable food supply and poverty reduction in the developing countries including Ghana. However, it is a great challenge for smallholder farmers to access direct marketing channels in Ghana. This paper analyzes the factors that influence smallholder rice farmers’ participation, and the intensity of participation, in direct marketing channels using primary data from 199 farmers in three rice-growing districts in the Northern Region of Ghana. A double hurdle model was used in the empirical analysis. The study findings show that a lower percentage of farmers sold their rice output to processors (direct marketing). Farm size, the price of rice output per 85 kg bag, access to market information, and access to credit increased farmers’ participation in direct marketing channels, whereas payment period and ownership of a bicycle reduced their participation. The study concludes that improving farmers’ access to market information and credit availability would enhance participation in direct marketing channels.

Keywords: rice marketing; rice farmers; Ghana; double hurdle model; transaction cost theory; random maximization theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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