Do market outlet combinations improve smallholder gross margin for smallholder French beans producers?

ABSTRACT Procurement of fresh produce necessitates a consistent, high-quality, supply. This study examined effects of a single, and combined, market strategy on gross margin of smallholder French bean[s] (Phaselous vulgaris L.) farmers. A random sample of 215 farmers was used and a multinomial endogenous switching regression model analyzed the data. The choice of a market outlet combination was influenced by gender of the household decision-maker, household size, education, off-farm income, group membership, extension service, farming experience, off-farm income, credit access, and market reliability. Participating in multiple market outlets increased gross margin per season. Smallholder farmers reported USD 225.66 per season when selling in all vertical coordination options. Growers were worse off by participating in the contract option only, with reduced gross margin. Adoption of all market outlets was positively influenced by education and off-farm income. Smallholder French bean farmer’s socio-economic circumstances matter in shaping the choice of market outlet combinations, while market diversification is important for smallholder producers.