Determinants of market participation and preference for production of pepper (Capsicum spp.) among farmers in southwest, Nigeria

The growing population and demand for staple foods in Nigeria necessitate the promotion of smallholder market participation, particularly in the pepper industry. Therefore, pepper commercialization can only be achieved when harnessing the nexus between production preference and market participation. Thus, the study examined the determinants of market participation and preference for pepper production in Southwest, Nigeria. A multistage sampling procedure was used to select 500 respondents while the data were sourced using a well-structured questionnaire. Data were analysed using market participation index (MPI), Multinomial logit (MNL) and Tobit regression. The results of MPI indicated bell pepper was cultivated more (81.9%) for market purposes than cayenne (75.8%), scotch bonnets (68.8%) and birdeye (36.4%). The results of MNL indicated that education, experience, credit, market information and distance influenced preference for species cultivation while education, experience, income, market information and selected species were paramount in determining the level of market participation in the area using Tobit regression. The results established that production preference has a significant impact on market participation. Therefore, expected structural transformation in agriculture can be achieved through market participation if policies are guided by farmers’ production preferences and improved economic status with a good market infrastructure.