Viability of government funded broiler production : lessons from Northern KwaZulu Natal, South Africa
- Mdletshe, Sifiso Themba Clement https://orcid.org/0000-0002-2668-0193
- Authors: Mdletshe, Sifiso Themba Clement https://orcid.org/0000-0002-2668-0193
- Date: 2023-04
- Subjects: Broilers (Chickens) -- Economic aspects , Broilers (Poultry) , Broilers (Chickens) -- Breeding
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/27843 , vital:69947
- Description: Generally, rural areas continue to experience high poverty levels and low incomes, which seem to be occasioned by high unemployment rates, limited educational attainments, and devastating floods and droughts. This situation is further exacerbated by increase in crime rates, making livelihoods even more difficult. To mitigate such adverse situations, rural households employ diverse strategies, including maintaining community gardens, one-home-one-garden schemes, as well as livestock and poultry production. The most prevalent livelihood strategy in South Africa or KwaZulu-Natal is broiler production, since it needs less space and a short production cycle compared to other livestock or crop enterprises. At the same time, income is generated over a short period. Besides, the government of KwaZulu Natal has actively intervened in the sector as part of its broader poverty reduction strategy and farmer support programmes. In KwaZulu-Natal Province, the provincial government has been supporting broiler producers for many years. While substantial research work has been done in the province on livelihood strategies, including livestock production on a province-wide basis, there is no information about how successful the broiler production funded by the government has being. Broader concerns about production problems have not been assuaged based on systematic studies and evidence. It is this wise that this study was initiated. The objective is to assess the economic viability of government-funded small-scale broiler projects in the KwaZulu-Natal Province of South Africa and determine the implications for poverty reduction and food security. Data were collected from the government-funded small-scale broiler producers that are residing in Northern KwaZulu-Natal districts uThungulu, Zululand and uMkhanyakude. A total of 75 small-scale broiler projects 25 broiler projects in each district were selected by probability sampling procedure for the interviews. Questionnaires that combined both close-ended and open-ended questions were used to collect primary data, which include production and marketing, as well as the factors that influence the profitability of the small-scale broiler projects. After collection, data were captured and encoded on spreadsheets in Microsoft Excel and exported to Statistical Package for the Social Science (SPSS) software version 26 and STATA for analyses. Descriptive statistics applied include frequencies and means. In addition, a gross margin (GM) and gross profit margin (GPM) analysis were employed to assess the profitability of government-funded small-scale broiler projects. Both profitability and gross margin analyses were used as proxies for farmers’ motivation and incentives to participate in broiler production. Further analyses were conducted to determine the model that best explains the underlying relationships. Initially, the Multiple Linear Regression Model was applied to determine the factors influencing the profitability of government-funded small-scale broiler projects. The indication was that while positive profits were revealed, the system seemed to fall short of its potential. In light of that, it was decided to fit another model to estimate the technical efficiency of the system and gain an understanding of the causes of any inefficiency that might exist in the production system. In that regard, the one-step Stochastic Frontier Model was employed to show that the technical efficiency of broiler production systems in the project area was positively and significantly influenced by flock size, the quantity of feeds and labour costs, while medication played no role possibly because of weak extension coverage. An inefficiency model fitted as part of the one-step model suggested that age, gender and educational level were significant influencers of technical inefficiency, with the possibility that the older the farmers, the more technically inefficient the system possibly because of the strenuousness of commercial poultry production. In addition, it was found that the more educated the farmer, the less inefficient the farm, which conversely means that the system becomes more efficient as the farmer receives more education. The negative coefficient of the gender variable also implies that for farms managed by female farmers, the system was less inefficient, which is more technically efficient, and this can be explained by women’s propensity to be more gentle, caring and sensitive in managing the chickens than their male counterparts. Heteroskedasticity tests and corrections were conducted in the one-step estimation technique to show that variations in the inefficiency term (μ) and the stochastic error term were explained by age and educational level for the most part. Clearly, improvements in the broiler industry in KwaZulu-Natal will depend to a large extent on the knowledge and experience of the farmers and substantial enlargement of the flock size of adequately fed birds. Attention to these elements is expected to have important practical implications for sustainable broiler poultry development and food security in the project area, as well as locations possessing identical features and characteristics. , Thesis (MSci) -- Faculty of Science and Agriculture, 2023
- Full Text:
- Authors: Mdletshe, Sifiso Themba Clement https://orcid.org/0000-0002-2668-0193
- Date: 2023-04
- Subjects: Broilers (Chickens) -- Economic aspects , Broilers (Poultry) , Broilers (Chickens) -- Breeding
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/27843 , vital:69947
- Description: Generally, rural areas continue to experience high poverty levels and low incomes, which seem to be occasioned by high unemployment rates, limited educational attainments, and devastating floods and droughts. This situation is further exacerbated by increase in crime rates, making livelihoods even more difficult. To mitigate such adverse situations, rural households employ diverse strategies, including maintaining community gardens, one-home-one-garden schemes, as well as livestock and poultry production. The most prevalent livelihood strategy in South Africa or KwaZulu-Natal is broiler production, since it needs less space and a short production cycle compared to other livestock or crop enterprises. At the same time, income is generated over a short period. Besides, the government of KwaZulu Natal has actively intervened in the sector as part of its broader poverty reduction strategy and farmer support programmes. In KwaZulu-Natal Province, the provincial government has been supporting broiler producers for many years. While substantial research work has been done in the province on livelihood strategies, including livestock production on a province-wide basis, there is no information about how successful the broiler production funded by the government has being. Broader concerns about production problems have not been assuaged based on systematic studies and evidence. It is this wise that this study was initiated. The objective is to assess the economic viability of government-funded small-scale broiler projects in the KwaZulu-Natal Province of South Africa and determine the implications for poverty reduction and food security. Data were collected from the government-funded small-scale broiler producers that are residing in Northern KwaZulu-Natal districts uThungulu, Zululand and uMkhanyakude. A total of 75 small-scale broiler projects 25 broiler projects in each district were selected by probability sampling procedure for the interviews. Questionnaires that combined both close-ended and open-ended questions were used to collect primary data, which include production and marketing, as well as the factors that influence the profitability of the small-scale broiler projects. After collection, data were captured and encoded on spreadsheets in Microsoft Excel and exported to Statistical Package for the Social Science (SPSS) software version 26 and STATA for analyses. Descriptive statistics applied include frequencies and means. In addition, a gross margin (GM) and gross profit margin (GPM) analysis were employed to assess the profitability of government-funded small-scale broiler projects. Both profitability and gross margin analyses were used as proxies for farmers’ motivation and incentives to participate in broiler production. Further analyses were conducted to determine the model that best explains the underlying relationships. Initially, the Multiple Linear Regression Model was applied to determine the factors influencing the profitability of government-funded small-scale broiler projects. The indication was that while positive profits were revealed, the system seemed to fall short of its potential. In light of that, it was decided to fit another model to estimate the technical efficiency of the system and gain an understanding of the causes of any inefficiency that might exist in the production system. In that regard, the one-step Stochastic Frontier Model was employed to show that the technical efficiency of broiler production systems in the project area was positively and significantly influenced by flock size, the quantity of feeds and labour costs, while medication played no role possibly because of weak extension coverage. An inefficiency model fitted as part of the one-step model suggested that age, gender and educational level were significant influencers of technical inefficiency, with the possibility that the older the farmers, the more technically inefficient the system possibly because of the strenuousness of commercial poultry production. In addition, it was found that the more educated the farmer, the less inefficient the farm, which conversely means that the system becomes more efficient as the farmer receives more education. The negative coefficient of the gender variable also implies that for farms managed by female farmers, the system was less inefficient, which is more technically efficient, and this can be explained by women’s propensity to be more gentle, caring and sensitive in managing the chickens than their male counterparts. Heteroskedasticity tests and corrections were conducted in the one-step estimation technique to show that variations in the inefficiency term (μ) and the stochastic error term were explained by age and educational level for the most part. Clearly, improvements in the broiler industry in KwaZulu-Natal will depend to a large extent on the knowledge and experience of the farmers and substantial enlargement of the flock size of adequately fed birds. Attention to these elements is expected to have important practical implications for sustainable broiler poultry development and food security in the project area, as well as locations possessing identical features and characteristics. , Thesis (MSci) -- Faculty of Science and Agriculture, 2023
- Full Text:
Market participation and welfare of smallholder farmers in the Eastern Cape Province South Africa
- Lesala, Mahali Elizabeth https://orcid.org/0000-0001-9921-2190
- Authors: Lesala, Mahali Elizabeth https://orcid.org/0000-0001-9921-2190
- Date: 2021-06
- Subjects: Farms, Small , Economic development -- South Africa , Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20916 , vital:46745
- Description: The low market participation of smallholder farmers in markets has received enormous attention from scholars, both in the country and the Eastern Cape Province. However, it is not clear how low their market participation is including its implications on farmer’s welfare. The purpose of the study was to determine the extent to which smallholder farmers in the homelands of the Eastern Cape participate in output markets and assess how their participation in markets has affected wellbeing of their households. This information will have important practical implications for policy regarding appropriate pathways for poverty alleviation and livelihoods improvements in the rural areas of the Eastern Cape Province. Three irrigation schemes; Qamata, Zanyokwe and Tyefu irrigation schemes were selected for this study. A sample of 210 smallholder irrigators were interviewed by means of a close-ended questionnaire. The data were analysed by means of descriptive statistical tools, the multiple-level choice models and the Propensity Score Matching (PSM) technique. SPSS and STATA computer programmes were used to carry out all the estimations. The analysis established that, although agriculture is the primary activity for rural livelihoods, it is not the main contributor to family income. Rather, remittances and social grants were the dominant sources of household income in the Qamata, Zanyokwe and Tyefu areas. From the standpoint of market, maize and potatoes are the most popular crops, but potatoes dominate the market. This result confirms that maize is the staple crop and therefore mostly grown for home consumption while production of potatoes is market-oriented. The Market Participation Index (MPI) revealed that farmers sell at least 55 percent of their farm produce, implying that farmers have made some transition from subsistence to semi-commercial farming. However, farmers’ priority still remains food self-sufficiency and market participation only takes place after satisfying their home food needs. The results revealed that the significant factors influencing the farmers’ decisions and their extent of participation in output markets were the age, gender, marital status of the household head, primary occupation of household head, size of farm cultivated, government financial support, access to extension services and farmer’s membership of cooperatives. Concerning the impact of output market participation on welfare of smallholders, the Average Treatment on the Treated (ATT) as the measure of change revealed that participation in output markets has a positive impact on welfare of the smallholder farmers through increased incomes. Farmers who participated in output market were at least R838.44 better off than those who did not participate in markets although social grants and remittances made significantly higher contribution to household welfare. The study suggests that despite some improvements in income of market participants, the standards of living of the rural households are still far from what would be considered optimal. Crop farming evidently contributes less than desired, hence the persistence of the widespread poverty. It is urgent to focus interventions on improving agricultural productivity while widening strategies for improving rural livelihoods beyond agriculture to diversify the choices open to rural dwellers. , Thesis (PhD) -- Faculty of Science and Agriculture, 2021
- Full Text:
- Authors: Lesala, Mahali Elizabeth https://orcid.org/0000-0001-9921-2190
- Date: 2021-06
- Subjects: Farms, Small , Economic development -- South Africa , Agriculture -- Economic aspects -- South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/20916 , vital:46745
- Description: The low market participation of smallholder farmers in markets has received enormous attention from scholars, both in the country and the Eastern Cape Province. However, it is not clear how low their market participation is including its implications on farmer’s welfare. The purpose of the study was to determine the extent to which smallholder farmers in the homelands of the Eastern Cape participate in output markets and assess how their participation in markets has affected wellbeing of their households. This information will have important practical implications for policy regarding appropriate pathways for poverty alleviation and livelihoods improvements in the rural areas of the Eastern Cape Province. Three irrigation schemes; Qamata, Zanyokwe and Tyefu irrigation schemes were selected for this study. A sample of 210 smallholder irrigators were interviewed by means of a close-ended questionnaire. The data were analysed by means of descriptive statistical tools, the multiple-level choice models and the Propensity Score Matching (PSM) technique. SPSS and STATA computer programmes were used to carry out all the estimations. The analysis established that, although agriculture is the primary activity for rural livelihoods, it is not the main contributor to family income. Rather, remittances and social grants were the dominant sources of household income in the Qamata, Zanyokwe and Tyefu areas. From the standpoint of market, maize and potatoes are the most popular crops, but potatoes dominate the market. This result confirms that maize is the staple crop and therefore mostly grown for home consumption while production of potatoes is market-oriented. The Market Participation Index (MPI) revealed that farmers sell at least 55 percent of their farm produce, implying that farmers have made some transition from subsistence to semi-commercial farming. However, farmers’ priority still remains food self-sufficiency and market participation only takes place after satisfying their home food needs. The results revealed that the significant factors influencing the farmers’ decisions and their extent of participation in output markets were the age, gender, marital status of the household head, primary occupation of household head, size of farm cultivated, government financial support, access to extension services and farmer’s membership of cooperatives. Concerning the impact of output market participation on welfare of smallholders, the Average Treatment on the Treated (ATT) as the measure of change revealed that participation in output markets has a positive impact on welfare of the smallholder farmers through increased incomes. Farmers who participated in output market were at least R838.44 better off than those who did not participate in markets although social grants and remittances made significantly higher contribution to household welfare. The study suggests that despite some improvements in income of market participants, the standards of living of the rural households are still far from what would be considered optimal. Crop farming evidently contributes less than desired, hence the persistence of the widespread poverty. It is urgent to focus interventions on improving agricultural productivity while widening strategies for improving rural livelihoods beyond agriculture to diversify the choices open to rural dwellers. , Thesis (PhD) -- Faculty of Science and Agriculture, 2021
- Full Text:
Entrepreneurial development paths and livelihood strategies in smallholder irrigation schemes in the Eastern Cape province, South Africa
- Gidi, Lungile Sivuyile https://orcid.org/0000-0002-2896-2709
- Authors: Gidi, Lungile Sivuyile https://orcid.org/0000-0002-2896-2709
- Date: 2016-07
- Subjects: Farms, Small , Irrigation farming -- Economic aspects
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/24906 , vital:63670
- Description: South Africa has implemented several successful rural poverty relief initiatives; however, poverty continues to strain rural development efforts. The aim of the study was to analyse the entrepreneurial development paths and livelihood strategies in smallholder irrigation schemes in the Eastern Cape Province of South Africa. The study has outlined five hypothesizes for the basis of concrete scientific research. Initially the study hypothesizes that a smallholder’s socio-cultural contexts such as village level institutions especially village governance as well as household circumstances including age, education and gender compositions of the household membership as well as household income can determine a smallholder’s transformation ability. The second hypothesis was that alternative economic activities especially farming activities such as livestock and crop production as well as off-farm economic opportunities which were open to a household could influence a smallholder’s willingness to change from homestead gardening to food crop production under government irrigation programme. The third hypothesis was on the smallholder’s assessment of available market for the products of his or her food crop irrigation farming which could be an important consideration in his or her willingness to change. The fourth assumption was that entrepreneurial skills are lacking, in particular the ability to search for opportunities and willingness to do something different than the masses and take risks in that process. Finally, the study hypothesized that the government irrigation scheme governance could determine the attractiveness of the scheme and thereby influencing the willingness of a smallholder to participate. Specifically, the legal and regulatory environments are very restrictive and they are not conducive to effective value and job creation in the villages and for the principal crop and livestock enterprises. The study used cross-sectional data collected from both scheme farmers and non-scheme farmers. There were 107 smallholder farmers administered. Cobb-Douglass production and Multiple Regression Models were used. The results indicated 62 percent were male household head and 38 percent were female household head. The majority of the farmers were above middle age for both men and women households head. Specifically, about 80percent were above 51 years of age. Wage employment on the other hand contributed 8percent for both scheme and non-scheme farmers. The majority of the family members were dominated by students and pensioners indicating 27percent of the respondents who were unemployed, among them students were included and pensioners were indicated by 9percent. The overall findings were that there are important differences in behavior regarding the transition from homestead gardening to irrigation farming. Smallholder farmers of Mnquma and Mbhashe municipalities have a great potential in maize, beans, potatoes, pumpkin, butternut production, as well as cattle, sheep, goats, pigs and poultry production. Lastly, the study has highlighted various factors affecting livelihoods sources. Therefore, there is a need for these smallholder farmers to engage consistently with the market to enhance information flow. Extension officers must play a role using the recent extension approach of participatory rural appraisal through discussions with farmers and empower them for marketing problems and solutions. Smallholder farmers must ensure frequent consultation with extension or agricultural advisors for financial and production input support. Government need to strengthen agricultural activities in the rural areas in order to sustain rural livelihoods for rural dwellers. Once the rural economy becomes transformed through agricultural activities then rural dwellers can achieve good standard of living in line with a key macroeconomic objective the South African government. , Thesis (PhD) -- Faculty of Science and Agriculture, 2016
- Full Text:
- Authors: Gidi, Lungile Sivuyile https://orcid.org/0000-0002-2896-2709
- Date: 2016-07
- Subjects: Farms, Small , Irrigation farming -- Economic aspects
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/24906 , vital:63670
- Description: South Africa has implemented several successful rural poverty relief initiatives; however, poverty continues to strain rural development efforts. The aim of the study was to analyse the entrepreneurial development paths and livelihood strategies in smallholder irrigation schemes in the Eastern Cape Province of South Africa. The study has outlined five hypothesizes for the basis of concrete scientific research. Initially the study hypothesizes that a smallholder’s socio-cultural contexts such as village level institutions especially village governance as well as household circumstances including age, education and gender compositions of the household membership as well as household income can determine a smallholder’s transformation ability. The second hypothesis was that alternative economic activities especially farming activities such as livestock and crop production as well as off-farm economic opportunities which were open to a household could influence a smallholder’s willingness to change from homestead gardening to food crop production under government irrigation programme. The third hypothesis was on the smallholder’s assessment of available market for the products of his or her food crop irrigation farming which could be an important consideration in his or her willingness to change. The fourth assumption was that entrepreneurial skills are lacking, in particular the ability to search for opportunities and willingness to do something different than the masses and take risks in that process. Finally, the study hypothesized that the government irrigation scheme governance could determine the attractiveness of the scheme and thereby influencing the willingness of a smallholder to participate. Specifically, the legal and regulatory environments are very restrictive and they are not conducive to effective value and job creation in the villages and for the principal crop and livestock enterprises. The study used cross-sectional data collected from both scheme farmers and non-scheme farmers. There were 107 smallholder farmers administered. Cobb-Douglass production and Multiple Regression Models were used. The results indicated 62 percent were male household head and 38 percent were female household head. The majority of the farmers were above middle age for both men and women households head. Specifically, about 80percent were above 51 years of age. Wage employment on the other hand contributed 8percent for both scheme and non-scheme farmers. The majority of the family members were dominated by students and pensioners indicating 27percent of the respondents who were unemployed, among them students were included and pensioners were indicated by 9percent. The overall findings were that there are important differences in behavior regarding the transition from homestead gardening to irrigation farming. Smallholder farmers of Mnquma and Mbhashe municipalities have a great potential in maize, beans, potatoes, pumpkin, butternut production, as well as cattle, sheep, goats, pigs and poultry production. Lastly, the study has highlighted various factors affecting livelihoods sources. Therefore, there is a need for these smallholder farmers to engage consistently with the market to enhance information flow. Extension officers must play a role using the recent extension approach of participatory rural appraisal through discussions with farmers and empower them for marketing problems and solutions. Smallholder farmers must ensure frequent consultation with extension or agricultural advisors for financial and production input support. Government need to strengthen agricultural activities in the rural areas in order to sustain rural livelihoods for rural dwellers. Once the rural economy becomes transformed through agricultural activities then rural dwellers can achieve good standard of living in line with a key macroeconomic objective the South African government. , Thesis (PhD) -- Faculty of Science and Agriculture, 2016
- Full Text:
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