Formal Market Participation and Farm Performance: The Case of Cattle Producers in Central Asia*
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.
© 2026 Rustam Rakhmetov, published by The Institute of Agricultural and Food Economics – National Research Institute
This work is licensed under the Creative Commons Attribution 4.0 License.