Institutional analysis of market participation among the small-scale nuts farmers in KwaZulu-Natal Province, South Africa

Small-scale nut farming plays a crucial role in the livelihoods of rural households in South Africa by providing dietary nutrients and income generation. However, small-scale nut farmers face numerous challenges which hinder their participation in formal markets. The purpose of this study was to identify the institutional factors affecting the market participation of small-scale nut growers in South Africa's KwaZulu-Natal Province. A semi-structured questionnaire was used to gather information from 100 small-scale nut growers who were chosen randomly. The data were analysed using a descriptive statistics and probit model. The results portrayed that numerous farmers do not participate in the nut market. Probit results showed that institutional factors such as product pricing, output market type, and availability of market information all have a beneficial influence on the participation of market, while market distance has a detrimental impact on the participation of market. The research suggests access to a variety of markets, market information systems, and price support mechanisms as ways to increase market involvement to foster commercialisation and job creation.