Determinants of Market Participation among Maize Producers in Oyo State, Nigeria

Smallholder farmers constitute the largest share of farm households in Nigeria and many of them are poor. A way out of poverty for them is to address market related problems. In this paper, the market options available to these farmers, as well as market related factors that are problematic were investigated. Primary data were collected from 100 maize farmers in Saki Agricultural Zone of Oyo State, Nigeria. Seventy five maize farmers participate in the market while 25 farmers produce only for subsistence. The farmers are well experienced and cultivate about 5.6 hectares of land. About 90% do not have access to market while 64% do not have access to good roads. The study identified 4 market options and the most patronized was the farm gate market option. The censored tobit result, market price show that, member of a producer group, farm size, educational and total maize produced, road condition, primary occupation and transaction costs significantly affect farmers’ market participation. Policy interventions that seek to improve these factors are very important to market participation.