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
 
 
Corresponding author
Rustam Rakhmetov   

Martin Luther Universität Halle-Wittenberg
 
 
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2026;386(1):59-81
 
KEYWORDS
JEL CLASSIFICATION CODES
Q12
Q13
Q18
 
TOPICS
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.
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