Institutional Factors Influencing Diary Farmers Participation in Formal and Informal Milk Markets in Maseru Urban, Lesotho, South Africa

  • Ashby Montoeli Rantlo
  • Molulela Tsoako
  • Brian Muroyiwa
Keywords: Market participation, institutional factors, milk markets, dairy farmers

Abstract

The study assessed institutional factors influencing participation in milk markets in Maseru urban. Thirty (30) diary farmers were selected using structured questionnaires. Data were analysed using percentage and logit regression model. Results showed that dairy farmers (60%) used formal market channels more than informal market channels (40%). Market information (0.083), membership in organization and collective action (0.088), government support (0.036) and contractual agreements (0.034) influence participation in formal markets while social capital (0.036), path dependency (0.043), delayed payments (0.084) and distance to milk collection centres (0.054) influence participation in the informal markets. Advance payments should be introduced; institutional support system developed as well as the decentralisation of the milk collection centers or points.

Keywords: Market participation, institutional factors, milk markets, dairy farmers

Published
2020-05-10
Section
Articles

Journal Identifiers


eISSN: 2408-6851
print ISSN: 1119-944X