RESEARCH PAPER
FORMAL MARKET PARTICIPATION AND FARM PERFORMANCE: THE CASE OF CATTLE PRODUCERS IN CENTRAL ASIA
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Martin Luther University Halle-Wittenberg
Submission date: 2025-04-29
Final review date: 2025-06-25
Acceptance date: 2025-10-08
Online publication date: 2026-01-15
Publication date: 2026-03-27
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2026;386(1):59-81
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ABSTRACT
Aim:
Policies promoting commercial farming and formal market integration often emphasize production
scale expansion. However, formal market participation is influenced by factors beyond production scale.
Material and methods:
This study investigates the determinants of formal market participation among
cattle producers in Kazakhstan and Kyrgyzstan using a triple-hurdle model. We explore three sequential
decisions: whether to commercialize cattle in live-weight, whether to choose formal over informal
markets, and how much to sell.
Results:
The major findings indicate that production scale encourages commercialization, but formal
market participation follows a non-linear relationship with herd size – small producers prefer informal
channels, while medium and large producers are more likely to sell formally. Price dynamics strongly
influence sales intensity, and institutional factors – such as credit access, labor availability, and animal
health management – significantly shape farmers’ choices. Gender disparities also emerge: female
farmers tend to sell more intensively in formal markets, while male farmers dominate informal sales.
Conclusions:
These findings highlight the need for policies that go beyond scale enhancement, targeting
barriers such as limited access to infrastructure, labor, and veterinary services.