Can digital technology promote market participation among smallholder farmers?

Abstract Digital technology holds significant potential for enhancing business efficiency in agricultural marketing. However, empirical research on the use of digital technology among smallholder farmers engaged in staple crop marketing in Sub-Saharan Africa remains limited. Recognizing the pivotal role of digital technology in agriculture, this study aims to analyse and synthesize existing knowledge regarding the impact of mobile phones on market participation among smallholder farmers. Through a comprehensive analysis, we seek to provide a robust understanding that can inform policies and programs aimed at enhancing smallholder market integration. To achieve this objective, we collected cross-sectional data from 360 farmers in southeast Nigeria and implemented a double hurdle model to analyse market participation decisions and the extent of farmers’ involvement in staple crop markets. In addition to traditional econometric methods, we employed propensity score matching to further investigate the impact of mobile phone ownership on market participation. Our analysis revealed that ICT tools, particularly mobile phones and radios, significantly influence both the decision and intensity of market participation among smallholder farmers. Specifically, mobile phones were found to play a crucial role in facilitating access to market pricing information and disseminating knowledge on improved production methods. Given the volatility of farm prices, the timely dissemination of market information through mobile phones is essential for farmers to make informed decisions. With a high percentage of mobile phone ownership and substantial investments in mobile networks in Nigeria, the digitalization of extension services and marketing information delivery systems could catalyse rapid improvements in agribusiness and marketing. This shift towards digital platforms has the potential to address information asymmetry, particularly among smallholder farmers, thereby fostering greater market integration and economic empowerment within rural communities.

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Publication Details

Journal
The International Food and Agribusiness Management Review
Published
2024-08-12
DOI
https://doi.org/10.22434/ifamr2023.0065
Citations
11
Primary Topic
Agricultural Innovations and Practices
Type
article
Field-Weighted Citation Impact
14.76
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article

Can digital technology promote market participation among smallholder farmers?

Patience Ifeyinwa Opata, Chinasa Sylvia Onyenekwe, Chukwuma Otum Ume, Kelvin Nnaemeka Nwangwu et al.
11 citations
The International Food and Agribusiness Management Review
Agricultural Innovations and Practices
14.76
article

Can digital technology promote market participation among smallholder farmers?

Patience Ifeyinwa Opata, Chinasa Sylvia Onyenekwe, Chukwuma Otum Ume, Kelvin Nnaemeka Nwangwu, Nice Nneoma Chukwuma Ume
article en
11 citations

Abstract

Abstract Digital technology holds significant potential for enhancing business efficiency in agricultural marketing. However, empirical research on the use of digital technology among smallholder farmers engaged in staple crop marketing in Sub-Saharan Africa remains limited. Recognizing the pivotal role of digital technology in agriculture, this study aims to analyse and synthesize existing knowledge regarding the impact of mobile phones on market participation among smallholder farmers. Through a comprehensive analysis, we seek to provide a robust understanding that can inform policies and programs aimed at enhancing smallholder market integration. To achieve this objective, we collected cross-sectional data from 360 farmers in southeast Nigeria and implemented a double hurdle model to analyse market participation decisions and the extent of farmers’ involvement in staple crop markets. In addition to traditional econometric methods, we employed propensity score matching to further investigate the impact of mobile phone ownership on market participation. Our analysis revealed that ICT tools, particularly mobile phones and radios, significantly influence both the decision and intensity of market participation among smallholder farmers. Specifically, mobile phones were found to play a crucial role in facilitating access to market pricing information and disseminating knowledge on improved production methods. Given the volatility of farm prices, the timely dissemination of market information through mobile phones is essential for farmers to make informed decisions. With a high percentage of mobile phone ownership and substantial investments in mobile networks in Nigeria, the digitalization of extension services and marketing information delivery systems could catalyse rapid improvements in agribusiness and marketing. This shift towards digital platforms has the potential to address information asymmetry, particularly among smallholder farmers, thereby fostering greater market integration and economic empowerment within rural communities.

The International Food and Agribusiness Management ReviewVol. 27(4)
University of Nigeria (NG)
Openalex Percentile: Top 1%
Agricultural Innovations and Practices
14.76
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