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Determinants of Market Participation in Small Scale Beef Cattle Entrepreneurs: Evidence from Pabna and Sirajganj Districts of Bangladesh

P K Sarma*
Bangladesh Agricultural University Research System (BAURES), Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

J U Ahmed
Departmentof Agricultural Economics and Policy, Sylhet Agricultural University, Sylhet-3100, Bangladesh

AKM AAl-Amin
Departmentof Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

MM Islam
Departmentof Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

K Fatema
Departmentof Agricultural Economics and Policy, Sylhet Agricultural University, Sylhet-3100, Bangladesh

Abstract/ Executive Summary:

The study was designed to determine the factors that influence the cattle farmers to participate and motivate in cattle marketing and preferred marketing channels in special focus on Pabna and Sirajganj Char areas of northern Bangladesh. Purposive sampling “snowballing” procedure was employed to contact 180 respondents. Semi-structured questionnaires were used to collect data from small-scale cattle farmers through face to face interview. The data was analyzed using the Heckman two-stage selection model and Multinomial logistic regression model. Six factors were identified motivating cattle farmers to choose marketing channel namely, the gender of the household head, marketing information received, education and number of cattle sold. It was found that age, gender, level of education and hard size significantly influenced the decision to participate in cattle marketing. Gender, price information, group marketing, marketing experience, vehicle ownership and marketing under contract significantly influenced the extent of market participation. Further, gender, group marketing, hard size, price information, marketing under contract and vehicle ownership significantly influenced the choice of cattle marketing channels. The study strongly recommends increasing the number of cattle marked through formal channels and need to lower transaction cost, increase bargaining power, increase the hard size, access to information and participation in terminal markets. The current policy advice should focus on the effects of policy distortions and adequate attention should be given to the serious, embedded institutional deficiencies that limit many commercial farmers from taking advantage of market opportunities.

Keywords: Cattle entrepreneurs, Influencing factors, Market participation

Location: Raigonj and Sathia under Sirajgonj and Pabna districts

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

The paper has the following specific review objectives-i) To determine the factors influencing participation and extent of participation in marketing of beef cattle in Pabna and Sirajganj districts. ii) To determine the factors influencing the preference of beef cattle marketing channel in Pabna and Sirajganj districts.

Methodology:

Description of the study areas The study was carried out in two upazilas namely Raigonj and Sathia under Sirajgonj and Pabna districts, respectively. Preliminary visits were made for the selection of study area. The data was collected through interview schedule selecting 180 respondents of two upazilas who were involved in beef cattle production and marketing. Method of data collection The data required for the study were collected through a small scale survey, key informants in-depth interviews and review of secondary data. A structured questionnaire consisting both open and closed types of questions to generate detailed information on factors that could influence farmers cattle marketing preferences was used. A total 180 farming households who are small scale cattle farmers were interviewed using a purposive sampling “snowballing” method. The snowballing method identifies cases of interest from people who know people that are information-rich, that is, good examples for study and good interview. Analytical Techniques Two types of analytical technique, namely: descriptive and econometric were used for analyzing the collected data. To achieving the objective Heckman two-stage and Multinomial Logistic Regression model (econometric model) used, respectively. a) Heckman two-stage model: To determine the factors influencing participation and extent of participation in beef cattle marketing, the Heckman two-stage selection model was used. The model consisted of two steps; firstly, selection equation was estimated using a probit model and secondly, an outcome equation was estimated using OLS regression. A Probit model predicts the probability of whether an individual household participated in the beef cattle market or not as shown.

Source of Information: J. Sylhet Agril. Univ. 1(2):289-297, 2014 ISSN: 2308-1597

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

It can be concluded that marketing of livestock is probably one of the most complex policy issues to be addressed for improving household food security in study areas because livestock production is their main source of income. Six factors were found to be significant in influencing the extent of market participation such as age, gender, education level, group marketing, price information, marketing experience, vehicle ownership and contract marketing had a positive influence on the proportion of cattle sales. Age was negatively significant meaning that more of younger people participated in cattle marketing. The rationale behind this is that younger people tend to be energetic and risk takers. Gender of household head was positive and significant. Male-headed households tend to be more of a market oriented than female household heads mainly because men are perceived to be more resource endowed than women. Education level was positive and significant. Six factors were found to be significant in determining factors influencing the preference of cattle marketing channel. Gender, group marketing, price information, contract marketing and vehicle ownership significantly influence the preference of cattle marketing channel. Gender had a significant influence on the preference of marketing channels. Based on the results of the study, education level, gender, vehicle ownership, price information, group marketing and market contracting were significantly found to influence the cattle market.

Knowledge Management: Journal