Understanding smallholder farmers’ persistence in informal markets through a self-determination theory perspective: evidence from South Africa
Résumé
Informal markets remain the dominant outlet for many South African smallholder farmers despite longstanding policy efforts to integrate producers into formal value chains. Existing literature has largely explained this pattern in terms of exclusion, structural barriers, and challenges of entry into formal markets. This study examines farmers’ persistence in informal agricultural markets by focusing on the motivational dimensions underlying market participation. A qualitative research design was employed. Data were collected through in-depth semi-structured interviews with 46 smallholder farmers across six South African provinces. Participants were purposively selected based on active market-oriented production and prior market participation experience. Interview data were analyzed thematically to identify recurring motivations shaping market choice and continued engagement in informal markets, using Self-Determination Theory as an interpretive lens to understand these decisions. Findings show that persistence in informal markets reflects deliberate and contextually grounded decision-making rather than a passive outcome of exclusion from formal systems. Rather than remaining passive under structural disadvantage, farmers sustain participation in markets where they retain greater control over production, marketing, and household responsibilities. Furthermore, these choices are driven by market arrangements perceived as achievable within available resources and exchange relationships that are dependable and familiar. The implication for policy is to rethink how formal markets are structured and how they interface with smallholder systems. Interventions aimed at market integration should consider how to design market arrangements that enhance farmers’ capacity to participate on meaningful, self-determined terms. Equally, there is a need to recognize and strengthen informal market systems as legitimate and valuable components of rural economies, rather than treating them as temporary or inferior arrangements. The study contributes to agricultural and food systems economics by reframing informal market participation as an active livelihood strategy rather than residual marginality. It highlights the importance of focusing on smallholders’ intrinsic motivations, not access alone, in understanding market participation.
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