- Title
- Market participation and value chain integration among smallholder homestead and irrigated crop farmers in the Eastern Cape province of South Africa
- Creator
- Mdoda, Lelethu
- Subject
- Farms, Small -- South Africa -- Eastern Cape Irrigation farming -- South Africa -- Eastern Cape
- Date
- 2017
- Type
- Thesis
- Type
- Doctoral
- Type
- DPhil
- Identifier
- http://hdl.handle.net/10353/15023
- Identifier
- vital:40152
- Description
- The irrigation schemes had been established over the years and now are operational but there is no marked improvement in the living conditions of the rural farmers and households. Smallholder farmers still face numerous constraints in market participation that hinder smallholder farmers, irrigators and homestead growth which have been attributed to lack of access to markets and technical expertise. Despite the government efforts, smallholder farmers effectively functioning in the agro-food chains, high-valued markets and commercial agricultural markets are rare; this indicates that the objective to allow smallholder farmers to advance their livelihood through participating in commercial agro-food chains has not yet been met. Farmers in the Eastern Cape produce many crops which they mainly sell in informal local markets; there is minimal number of smallholder farmers supplying their produce to the formal markets. Irrigation development is very crucial to the development of the agricultural sector as it ensures improvement in yields and reduces rural poverty through creating rural employment, enhance smallholder farmers’ market participation and enhance market access policies by smallholder farmers as means to achieve the Sustainable Development Goals The study was conducted in the Eastern Cape Province and employed survey data obtained from 200 smallholder irrigated crop farmers and homestead gardeners. A multistage stratified sampling procedure was used in which the first stage involved selecting the study areas. This was followed by the selection of the district and then the respondents. The farmers were selected from three District Municipalities which have operational irrigation schemes, namely OR Tambo, Amathole and Chris Hani District Municipalities in the province. STATA and SPSS were used to analyze the data. The Heckman model was applied to examine factors influencing farmers’ decision to participate in market among crop producing farmers in the province. In the first stage Heckman analysis, the decision as to whether or not to participate (which is a binary choice situation) is used to undertake the maximum likelihood estimation (MLE). In the second stage, the conditional quantity sold (continuous variable) is assumed to follow a truncated normal regression model, whereby the MLE is estimated by fitting a truncated normal regression of quantity sold. Gross Margin and Net Farm Income were used to measure farm profit as well as multiple regression analysis to estimate determinants of profitability in the study area. Profit efficiency was measured using the normalized transcendent logarithmic profit frontier approach (translog). he descriptive statistics employed include means, percentages and frequencies mostly of the socio-economic characteristics of farmers in the study area. The results show that males were dominant with the representation of 61.7percent. The majority of farmers were aged and the mean age was 60 years, indicating that farmers in the province are old which has implication for productivity and market participation. High level of illiteracy is shown in the data and mean household size of 5 persons with the household head having at least obtained some primary school education.The irrigated crop farmers and homesteads were found to have farm size under 4 ha. About 86.5percent were full time farmers and Farming is their major source of livelihood. Smallholder irrigators and homestead gardeners derive their income from social grants and remittances. This thesis found out that majority of the farmers do not participate in markets. In this instance, farming becomes a scapegoat for failure to enter alternative labour markets. The average annual on-farm production income from smallholder irrigators was R7 860.27 and homestead gardeners was R5 915.50. The empirical results from probit model suggest that age of the farmer, level of education of the farmer, household size, farm organization, access to extension, distance to markets, occupation and farm experience were some of the key determinants that had significant and positive effects on farmers’ decision to participate in markets while access to credit, transport to the markets and farm size were some of the key determinants that had significant and negative effect on farmers’ decision to participate in markets. The volume of crops sold to the market is determined by gender, age, years spent in school, distance to the market, farm experience, household size, access to extension, membership in farm organization and non-farm income.
- Format
- 324 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Science and Agriculture
- Language
- English
- Rights
- University of Fort Hare
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UFH Department of Agricultural Economics and Extension
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