MARKET PARTICIPATION DECISION OF BEEF CATTLE FARMERS: A STUDY OF TRANSACTION COST IMPACTS IN WETLAND AREAS OF KISHOREGANJ DISTRICT

Market Participation Decision

Abstract

In Bangladesh, cattle farming provides sustainable livelihoods and food security to the rural communities, but selling in markets is key to making farming profitable. This study intended to examine the socio-demographic profile of beef cattle farmers and the key factors among transaction costs that affect market participation decisions of beef cattle farmers in wetland areas. Primary data were collected from four upazilas namely Nikli, Itna, Mithamain, and Ashtagram from Kishoreganj district, which included a total of 120 respondents, using semi-structured interview schedule. Descriptive statistics and multinomial logistic regression (MNL) analyzed socio-demographic profiles and transaction cost factors influencing beef cattle farmers’ market participation in wetland areas. Most respondents were male, middle-aged (36–50 years), lacked formal education, relied on agriculture for income, and had no legal agreements. MNL results showed higher transport costs, labor costs, and longer distances reduce district market participation due to farmers’ preference for affordability and convenience. Conversely, higher transport costs and distances increase terminal market participation, as farmers prioritize better prices and larger markets, though higher shed costs decrease participation due to sensitivity to operational expenses. This study provides valuable insights for policymakers to develop interventions that promote sustainable development and improve the well-being of cattle farmers in wetland areas.