Marketing of Maize and Cowpea amongst Smallholder Farmers in Mozambique: A Market Participation Approach

In Mozambique, agricultural production is dominated by smallholder farmers with cultivation on less than two hectare of land and the use of low inputs with production mostly targeted towards own house consumption with very little for agricultural marketing. This study aim to analyze the trends of market participation of maize and cowpea, examine the socioeconomic characteristics of maize and cowpea farmers affecting market participation and determine the effect of the factors influencing the household decision to participate in maize and cowpeas’ market. The t-test and chi-square test is used to examine the socioeconomic characteristics of households affecting market participation and the analysis of factors influencing household decisions to participate in the maize and cowpea markets is achieved using the Cragg’s Independent Double Hurdle Model which is estimated using probit model for the first stage (participation decision) and truncated normal for the second stage (quantity to sale decision). This study used 2002-2012 data from Trabalho de Inquérito Agrícola (TIA). The trend analysis result showed that maize market experienced a downward trend while cowpeas’ market experienced an upward trend. The results from the t-test and chi-square test on eachvariables showed that the two groups (participants and non-participants) differ from each other except for few variables – age of household head, household size and the use of manure. The results from the double hurdle model showed that market participation and the quantities sold in the market were positively related to the production quantity, household head being a male and the use of extension services. In addition, market participation and the quantities sold in the market decreased for households who had experienced crop lost. This study concluded that male headed households’ had greater opportunity in food-crop markets and that the role of extension services is vital to agricultural market participation and on the quantities sold in the market. Therefore, it was recommended that agricultural programs should focus on male headed households and that extension services coverage should be broaden within each region in the country