Determinants of Choice of Marketing Channels Among Smallholder Irrigated Tomato Farmers in the Kassena-Nankana Municipality of Ghana

Abstract

The study analysed the determinants of the choice of marketing channels among smallholders’ irrigated tomato farmers in Kassena-Nankana Municipality (KNM) of Upper East Region (UE/R), Ghana. Multi-stage sampling techniques were used to select 172 tomato farmers, and data was collected with the aid of semi-structured questionnaire during the 2017 farming season. The Haussmann test of independence of irrelevant alternatives (IIA) assumptions was used to test the validity of the channel choices of the model. Multicollinearity test was conducted and the variance inflation factor (VIF) showed no correlations between any of the independent variables. Multinomial logit model was used to analyse the determinants of choice of marketing channels. The analysis established that, the average size of irrigated farm land used was 0.92 acres, with 26.74% of farmers selling their produce to the wholesalers, 38.95 % to retailers, 20.93% to roadside traders and 13.37 % to consumers. Meanwhile, use of certified/improved seeds, Membership of Farmer Based Organization (FBO), farm size and access to market information significantly and positively influenced the choice of marketing channels. Whilst, age, education, gender, household size, labour cost and harvesting period negatively affected the choice of marketing channels. The study recommends creation of social media platforms or groups and mobile phone usage among tomato farmers to promotion market information on channel choices, awareness creation on certified/improved variety seeds usage, and promotion of strong cooperatives. Agricultural extension officers can take up the task in assisting farmers in the creation of social media platforms and link farmers up to tomato buying agents or groups.