Rural households livelihood strategies in communities around the Fort Hare and Middle Drift rural dairy projects in Eastern Cape Province South Africa
- Authors: Mukotami, Samuel
- Date: 2014
- Subjects: Households -- Economic aspects -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Dairy farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11228 , http://hdl.handle.net/10353/d1021132 , Households -- Economic aspects -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Dairy farming -- South Africa -- Eastern Cape
- Description: In this study, rural households livelihood strategies in communities around Fort Hare and Middle Drift dairy projects in the Nkonkobe Municipality are explored from a household perspective. Rural communities around Fort Hare and Middle Drift dairy projects in Eastern Cape, South Africa are found choosing a multiple of livelihood portfolios that are linked to dairy project activities to increase food, generate income, and safeguard against risks and shocks. The dairy projects in rural areas can reduced the problem of shrinking livelihood options in rural areas were most of the households are relying on government grants which has characterised the rural areas with long queues during month ends. The main objectives of this study are, to assess whether the rural dairy projects set goals are being achieved; to identify dominant livelihood strategies of households living around dairy projects in Eastern Cape Province, South Africa and to identify determinant factors influencing rural households around dairy projects to choose certain livelihood strategies that improve their welfare. The study analysed socio-economic survey data that had been collected from households in six rural villages in Nkonkobe Municipality surrounding the Fort Hare and Middle drift dairy projects. The stratified and random sampling method was used. The descriptive analysis comparing the livelihood portfolios’ in the six rural villages around Fort hare and Middle Drift dairy projects has revealed that there is an increasingly important role of the non-farm economy in the area (income from activities not linked to farming) as compared to farming, non-labour (income from remittances and government grants) and non-farm activities that are combined with farming (non-farm and farming activities). The multinomial logistic regression model revealed, with respect to the household variables, social-economic and institutional related variables as some of the barriers faced by poor households in rural areas sharing boundaries with rural dairy projects to enter into various livelihood strategies. Results from this study outlined that rural communities around dairy projects do not rely much on one livelihood pathway but they link multiple strategies together to improve their standard of living. The study, therefore, conclude that rural dairy projects with activities that are complementing with rural livelihood pathways available can be trusted as a reliable and sustainable livelihood source to reduce poverty in communities which share boundaries with rural dairy projects.
- Full Text:
- Authors: Mukotami, Samuel
- Date: 2014
- Subjects: Households -- Economic aspects -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Dairy farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11228 , http://hdl.handle.net/10353/d1021132 , Households -- Economic aspects -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Dairy farming -- South Africa -- Eastern Cape
- Description: In this study, rural households livelihood strategies in communities around Fort Hare and Middle Drift dairy projects in the Nkonkobe Municipality are explored from a household perspective. Rural communities around Fort Hare and Middle Drift dairy projects in Eastern Cape, South Africa are found choosing a multiple of livelihood portfolios that are linked to dairy project activities to increase food, generate income, and safeguard against risks and shocks. The dairy projects in rural areas can reduced the problem of shrinking livelihood options in rural areas were most of the households are relying on government grants which has characterised the rural areas with long queues during month ends. The main objectives of this study are, to assess whether the rural dairy projects set goals are being achieved; to identify dominant livelihood strategies of households living around dairy projects in Eastern Cape Province, South Africa and to identify determinant factors influencing rural households around dairy projects to choose certain livelihood strategies that improve their welfare. The study analysed socio-economic survey data that had been collected from households in six rural villages in Nkonkobe Municipality surrounding the Fort Hare and Middle drift dairy projects. The stratified and random sampling method was used. The descriptive analysis comparing the livelihood portfolios’ in the six rural villages around Fort hare and Middle Drift dairy projects has revealed that there is an increasingly important role of the non-farm economy in the area (income from activities not linked to farming) as compared to farming, non-labour (income from remittances and government grants) and non-farm activities that are combined with farming (non-farm and farming activities). The multinomial logistic regression model revealed, with respect to the household variables, social-economic and institutional related variables as some of the barriers faced by poor households in rural areas sharing boundaries with rural dairy projects to enter into various livelihood strategies. Results from this study outlined that rural communities around dairy projects do not rely much on one livelihood pathway but they link multiple strategies together to improve their standard of living. The study, therefore, conclude that rural dairy projects with activities that are complementing with rural livelihood pathways available can be trusted as a reliable and sustainable livelihood source to reduce poverty in communities which share boundaries with rural dairy projects.
- Full Text:
Access to credit and the effect of credit constraints on household welfare in the Eastern Cape province, South Africa
- Baiyegunhi, Lloyd-James Segun
- Authors: Baiyegunhi, Lloyd-James Segun
- Date: 2009
- Subjects: Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11153 , http://hdl.handle.net/10353/d1000977 , Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
- Full Text:
- Authors: Baiyegunhi, Lloyd-James Segun
- Date: 2009
- Subjects: Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11153 , http://hdl.handle.net/10353/d1000977 , Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
- Full Text:
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