Determinants of participation in highly paid markets among woolgrowers in the Eastern Cape province, South Africa

Market participation is a very crucial element among smallholder farmers through its effects on income, poverty reduction and rural economic development. Woolgrowers seek to maximise profits by sourcing for avenues for higher market value for their products. The study identifies factors which determine participation of woolgrowers in high value markets. Using stratified random sampling, data was collected from 248 woolgrowers of the National Wool Growers Association (NWGA). A Logistic regression model was used to determine the factors that influence participation of woolgrowers in high value markets. The results reveals that wool growing experience (β =.033, Sig =.000), skill acquisition (β=.728, Sig=.000) and wool price have a positive (β=.071, Sig. =.000) and significant effect on woolgrowers’ participation in the highly paid markets, while gender (β =-.412, Sig=.006) has a negative and significant effect. The findings of this study would enhance future decision and policies that would improve market accessibility and competitiveness of South African woolgrowers, thereby improving their income, food security and livelihoods.