An Analysis of the responsiveness of small-scale pig farmers to price and non-price incentives: a case of Mazowe district Zimbabwe

Author

Dhobha, Munashe

Title

An Analysis of the responsiveness of small-scale pig farmers to price and non-price incentives: a case of Mazowe district Zimbabwe

Abstract

Small-scale pig farming played a crucial role in supporting the livelihoods of rural households in developing regions. However, these producers often faced significant challenges in accessing higher-value formal markets, which limited their ability to maximize their returns. This study examined the key factors influencing the supply response of small-scale pig farmers in the Mazowe District, focusing on their responsiveness to both price and non-price incentives. The analysis was based on a comprehensive assessment of the pig buyers in the Mazowe District, which identified the market channels and their relative importance. To further understand the dynamics of pork supply, the study employed a Nerlovian supply response model, which captured the influence of various price and non-price factors on the production decisions of small-scale pig farmers. The findings revealed that local butcheries and consumers were the primary buyers of pork from small-scale producers, accounting for 45% and 35% of output, respectively. While traders and middlemen played important roles in providing market access, the fragmented and localized value chain structure limited the ability of small-scale farmers to negotiate better prices. The analysis of the adaptive strategies employed by small-scale pig farmers, as reflected in the fluctuations in the number of different pig categories, demonstrated the resilience and flexibility of these production systems in responding to evolving market demands and optimizing their limited resources. The Nerlovian supply response model indicated that pork producers exhibited a dynamic adjustment process, responding to both current and lagged market conditions. Factors such as credit availability, input costs, macroeconomic factors, and technological progress played significant roles in shaping pork supply response. The estimated short-run of 0.305 and long-run price elasticity’s of 0.603 suggested that pork producers were responsive to changes in output prices, highlighting the importance of price incentives in influencing supply adjustments. The findings from this study offered a comprehensive understanding of the key drivers of pork supply, including both price and non-price factors. The insights from nerlovian supply response could inform policy decisions and strategic interventions aimed at supporting the growth and sustainability of the small-scale pig farming sector. The analysis of the responsiveness of small-scale pig farmers to price and non-price incentives provided valuable insights into the complex dynamics of the pork supply in the Mazowe District. The study underscored the need for targeted policy interventions and market-based solutions to enhance the market access, bargaining power, and economic viability of these small-scale producers.

Date

MAY 2024

Publisher

BUSE

Keywords

small scale pig farmers

price and non-price incentives

market channels

production trend

Supervisor

Dr V. T. Munyati