Financing sources and market access strategies for soybean producers in the northeast of the Republic of Benin

Purpose This research investigates the impact of financing sources on marketing strategies in the soybean agricultural enterprises. Design/methodology/approach A survey was conducted with 262 randomly selected small soybean producers in the municipalities of Nikki and Pèrèrè in Northeast Benin. The multinomial logit regression (MNLR) model was used to estimate the relationship between financing sources and market access strategies. Findings The results showed that access to formal financing for soybean production has a positive and statistically significant influence on the adoption of group selling and mixed selling. Furthermore, the results indicated that factors such as gender, interaction with extension services, experience in soybean production, soybean acreage and experience in agricultural loans also influence the choice of soybean sales modes. Research limitations/implications The study is limited by the fact that it takes into account two regions of northern Benin. Although it allows us to apprehend and understand the sources of financing and market access strategies of soybean producers in developing countries like Benin. Social implications This suggests that when producers have access to formal credit for soybean production, they are more likely to opt for bundling methods, and sometimes combine bundling with individual selling. The government needs to give opportunities to producers to get official subventions. Originality/value Very few studies have explored the relationship between financing sources and market access strategies for soybean producers in developing countries. This research highlights the importance of facilitating access to formal financing for soybean producers to promote stable incomes and improve their working conditions.