Viability of government funded broiler production : lessons from Northern KwaZulu Natal, South Africa
- 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
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Market participation and welfare of smallholder farmers in the Eastern Cape Province South Africa
- 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
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Perceptions of climate change and adaptation strategies: the case of smallholder farmers of Raymond Mhlaba, Port Saint Johns’ and Ingquza Hill local municipality in the Eastern Cape.
- Authors: Maya, Okuhle
- Date: 2019
- Subjects: Climatic changes Farms, Small
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/17271 , vital:40871
- Description: Climate change has become indisputable judging from the observed global variations in precipitation, increases in average temperatures, rising average sea levels and melting of ice. The climate phenomenon has since evolved globally and it has been largely documented by scholars. Because of the increases in global temperatures, weather patterns have also changed. This change has resulted in debates on climate change as well as how to respond to it. Various scholars across the world have expressed their opinions about climate change; its causes, impacts and adaptation. In addition, there has been a growing body of literature and studies focusing on smallholder farmers’ perceptions of climate change. Without a doubt, climate change will and has left a group of people, communities and countries vulnerable. In particular, developing countries and poor communities in sub-Saharan Africa are expected to be affected the most by the impacts of climate change. This is mainly because of the region’s dependence on natural resources and their limited capacity to adapt. Literature further adds that vulnerability is on condition of the community’s socioeconomic characteristics and physical surroundings. Climate change variations pose a threat to the agricultural sector and food security of households relying on subsistence farming for survival. Climate variations such as decrease in rainfall and increased hot seasons have been reported to have led to a decline in food production, death of livestock and outbreaks human and animal diseases. The study’s main aim was to determine the smallholder farmers’ perceptions of climate change and adaptation strategies in Raymond Mhlaba, Port Saint Johns’ and Ingquza Hill local municipalities. Particularly, the study looked at the factors influencing these perceptions and the factors affecting the smallholder farmers’ choice of adaptation strategies used in response to climate change. Investigating perception provides insights into the fundamental drivers of behavioural changes in the face of climate change. On their part, adaptation options are greatly shaped by the nature of an individual’s behaviour. The study was carried out in 3 local municipalities (Raymond Mhlaba, Port St Johns’ and Ingquza Hill) in the Eastern Cape, South Africa. The research design applied in this study was cross sectional design where data are collected at a single point in time. Multistage sampling technique was used in selecting respondents from the local municipalities. Stratification was then done to group farmers according to their vi wards and locations. Lastly, purposive sampling was used to select households and smallholder farmers practising crop and livestock production. A total of 211 smallholder farmers constituted the sample size for the study. A close-ended questionnaire was used to conduct structured interviews of household heads. The study utilized both qualitative and quantitative approach. Data collected were coded and entered in Microsoft Excel and transferred to Statistical Package for Social Scientists (SPSS, version 25) for analyses. Descriptive statistics was used to determine the climate change perceptions of smallholder farmers and also to explore the adaptation strategies used by farmers to cope with the impacts of climate change. The findings were explained using frequencies, means and variances. Multinomial Logistic Regression (MNL) was used to determine the factors affecting the choice of adaptation strategies used by smallholder farmers and the probability that a farmer would choose a particular strategy. The results from the study revealed most of the respondents as being able to identify the perceived changes in climate with the environmental changes that they observed. The respondents perceived climate change as an increase in drought period, increase in average temperatures, decrease and variations in rainfall, shortened growing season, crop failure, pests and diseases. However, most of the smallholder farmers disagreed with the frequency of flood incidences as they have not experienced these in their areas. In terms of responses to these changes in climate, the smallholder farmers have used a number of adaptation strategies to cope. Most of the farmers used crop diversification, organic manure, soil and water conservation practices, while others simply did not adapt and some used all the available adaptation strategies identified in this study. The results from the MNL revealed that occupation, household size and years spent in school (education) generally had a positive influence on the choice of adaptation strategy used by smallholder farmers. On the other hand, age; farming systems and membership of a farmers’ association were negatively affecting the smallholder farmers’ choice of adaptation strategy to use in response to climate change. Much support is needed in terms of disseminating information and knowledge among smallholder farmers about climate change and its adaptation strategies. This can be possible through improving extension services, and providing credit to smallholder farmers
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The role of gardening in improving community resilience in rural areas: a case study of Raymond Mhlaba, Port St Johns and Ingquza Hill Local Municipalities, Eastern Cape Province, South Africa
- Authors: Hendrick, Namhla Andiphile
- Date: 2019
- Subjects: Community gardens
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/17224 , vital:40867
- Description: The increase of challenges in rural areas especially in developing countries has widened the vulnerability of rural people in the rural communities. This study has found that gardening has become the weapon to defend rural people and communities in developing countries against poverty and other hardships, since gardening in rural communities has the possibility to act as sustainable livelihood strategy. Semi structured questionnaire was used to collect primary data from smallholder farmers in the three local municipalities (Raymond Mhlaba, Port St Johns and Ingquza Hill local municipalities). The research investigated both home and community gardening. Multistage sampling was employed to select the sample. In stage one, the three Local Municipalities (LM’s) were purposively selected. In stage two, farmers were grouped into wards and communities and samples drawn in such a way that each group was well represented. This was followed by using quota sampling through the census statistics to determine farmers who are practising gardening whether it is community gardening or household gardening in these three local municipalities. Finally, random sampling was used to select a sample of 203 households that are undertaking some form of gardening (home or community) and are willingness to participate in the study. The Statistical Package for Social Sciences (SPSS version 24) was used to analyse the data by means of descriptive statistics and logistic regression model. The results confirm the strong links between home or community gardening and community resilience and that the influence is conditioned by a range of socioeconomic and demographic characteristics, including, age, occupation, access to extension officer and farming experience. In the light of the foregoing, it is recommended that households and communities be encouraged establish and operate home and/or community gardens as a strategy for coping with adversities that rural areas confront from time to time. In line with that, social interactions must be encouraged in communities because such interactions increase resilience in the sense that they build confidence in community members and a strong sense of belonging and trust. The role of education in enhancing access to information and knowledge that promote community resilience to disasters and shocks needs to be recognized and incorporated in community planning
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An investigation on the motivational feattures influence on technical efficiency and profitability of smallholder irrigated crop farmers in Kwa-Nobuhle, Eastern Cape province of South Africa
- Authors: Funde, Sibongile
- Date: 2017
- Subjects: Crops -- South Africa -- Eastern Cape -- Marketing Irrigation farming -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/11917 , vital:39118
- Description: Substantial impact and the importance of agriculture in the economies of the developing countries is increasingly acknowledged. Agriculture generally has shown to remain crucial to economic development. It has been noted that agricultural growth plays a pivotal role in poverty reduction and employment creation. Due to the potential of the smallholder sector to alleviate poverty and minimize unemployment rate leading to the country’s economic growth, enormous development programs have in the past and continues to be implemented by South African government. Programs such as land-based development strategies including agriculture, extension services, improved technologies including irrigation establishment, revitalization and rehabilitation, water rights legislation and financial support. However, the current state of smallholder low-agricultural productivity growth trends raises concerns on what other fundamental development strategies to implement in order to enhance agricultural productivity growth. Hence, this study seeks to address the impact of social farming on agricultural productivity by investigating smallholder farmer’s motivational features. Motivational features regarded are as important determinants of success, modify behaviour, serve to mobilize and direct energy into actions. Given the importance of motivational features and their formation in social interaction, the objective of the study was to investigate motivational features of smallholder farmers with regard to expanding irrigation land, determine technical efficiency of smallholder farmers as well as their profitability generation capability. A multistage sampling method was used that involved using purposive sampling, simple random sampling was adopted where three smallholder agriculture projects using irrigation methods to farm were selected and by use of snowball sampling the study ended up collecting data from a total of 124 respondents. The sample was chosen on the basis that smallholder farmers hold attributes that were crucial for execution of this research. The study proceeded by conducting face-to face interviews of smallholder farmers, focus groups and key informant using interview schedules and a questionnaire consisting both open and close-ended questions. Data were analysed using different methods. Firstly, data were analysed descriptively to get a deeper understanding of smallholder farmer’s socio-economic characteristics as well as their motivational features. Secondly, data were analysed statistically to determine Technical Efficiency (TE) of smallholder farmers using both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). Lastly, Gross Margin Analysis was used to measure farmer’s profitability. Results show that smallholder farmers have a range of motivational features that incorporates both productive and non-productive goals. The study made use of twenty-five goals obtained from literature studies and categorised them into six motivational feature types namely; outcome based, process focused/extrinsic, performance, achievement, intrinsic/self-efficacy, and household livelihood strategies. Smallholder female and male outcome based motivations were found to be statistically significant at 5percent, while process focused/extrinsic, performance, achievement, intrinsic/self-efficacy and household livelihood strategies motivations between them were found not to be statistically significant, which means that smallholder female and male motivations are not different and that both farmers consider such motivations at the same level. Technical Efficiency (TE) was measured using DEA method and was found to be 0.70, which is different from the TE obtained using SFA that was 0.47. Three dominant crops were produced, namely potatoes, cabbage and spinach. Cabbage crop was the most produced, had the highest gross margin results with a commercialization ratio of 0.33percent as compared to potatoes and spinach. Which indicates that cabbage is a high value crop to smallholder farmers of Kwa-Nobuhle area. In view of the research findings, it was concluded that motivational features of smallholder farmers were positively related to technical efficiency which implies that the more motivated farmers become, the higher their technical efficiency, hence their potential to expand land under irrigation. Cabbage production was high and more profitable than potatoes and spinach production. Recommendations include that government, NGO’s, private sector and institution need to promote the use of improved technologies, agricultural training and take smallholder farmer’s motivational features into account in development programmes. These actions are necessary to increase irrigated farming, overcome low-performance levels and enhance profitability of smallholder farmers, and ultimately achieve poverty alleviation and improve employment opportunities in the rural areas.
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Analysis of the impact of Smallholder Irrigation Schemes on the choice of rural livelihood strategy and household food security in Eastern Cape
- Authors: Christian, Mzuyanda
- Date: 2017
- Subjects: Irrigation -- South Africa -- Eastern Cape Farms, Small -- South Africa -- Eastern Cape Food security -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4813 , vital:28526
- Description: Since the end of Apartheid, the South African government has invested substantially in smallholder irrigation schemes, particularly in the former homeland areas. One of the primary goals for establishment of these schemes was to solve food security problems. Sadly, these efforts have not produced the desired results, and poverty has deepened. The question that can be asked is: What is it that makes South African smallholder agricultural sector seemingly impervious to the interventions that government has made in targeting smallholder farmers since the dawn of democracy in 1994? In order to address such a question, a set of structured questionnaires was used to interview 100 smallholder irrigators and 100 non-irrigators using multistage stratified random sampling technique in the Amatole, Chris Hani and OR Tambo District municipalities. Demographic and socio-economic characteristics of smallholder irrigators and non-irrigators around Qamata, Pendu, Tyhefu, Merelles and Ntshongweni irrigation schemes were measured using descriptive statistics. Profitability between the two groups was measured using gross margin analysis (GM). The Probit model was used to determine the factors that affect smallholder farmer‘s choice of participation in irrigation schemes. The impact of irrigation participation on yields, crop sales and food security was estimated using the propensity score matching (PSM) technique. The impact of irrigation participation of smallholder farmer‘s choice of livelihood strategy was estimated using the multinomial regression model. The results showed that male respondents were dominant with a representation of 63 percent and average mean household size of 4 persons with the household head having spent at least 7 years at school. Farming was found to be the major (64 percent) occupation in the study area with an average income of R2 944.52 per cropping season. Both irrigating and non-irrigating smallholder farmers in the study area used improved, fertilizer and tractor for production. Overall, smallholder farmers spent 30.9 percent of their household income on food with irrigators‘food spending lower than those of non-irrigators. The gross margin analysis suggests that the irrigated farmers were in a better position to afford enough food in order to satisfy their household requirement. Findings from the Probit regression and Propensity Score Matching are consistent across the methods, indicating that irrigation participation has a positive influence on crop yields, income and consumption expenditure. Probit regression further showed that age, quality of land, access to credit, access to market, distance to the scheme and membership of another society/association have a positive impact on access and use of irrigation and are significant at p < 0.05 percent level. The Propensity Score Matching using Nearest Neighbour and Kernel Matching Methods of the outcome variables, total farm income and food consumption patterns, shows a positive and statistically significant result at p < 0.05 percent level. The nearest neighbour matching method shows that irrigators received higher farm income R2044.01 than non-irrigating farmers R622.12. The Average Treatment Effect on total food expenditure was negative both in the case of NNM and KM algorithms, indicating that participation in irrigation can decrease the expenditure levels on food from R933.30 to R926.70. This could be due to the fact that irrigating farmers produced enough for home consumption than non-irrigators. The multinomial regression model shows that irrigation participation influences smallholder farmers choice of livelihood strategy and these variables were statistically significant at p < 0.05 percent level. These results provide insights to address the question as to the appropriate development path for transition from homestead to irrigation. Continued support to smallholder farmers in the forms of funding, extension services and improved technologies is certainly needed to enhance food security.
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Choice of market channels by smallholder vegetable farmers in King Sabata Dalindyebo Municipality in the Eastern Cape province of South Africa
- Authors: Yokwana, Aphelele Lucia
- Date: 2017
- Subjects: Vegetables -- Marketing Farms, Small -- South Africa -- Eastern Cape Vegetable trade -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/11906 , vital:39117
- Description: The study investigates the choice of market channels by smallholder vegetable farmers in King Sabatha Dalindyebo Municipality, in the Eastern Cape Province of South Africa. Vegetables as a group of horticultural crops are important for their contribution as an income support to a large proportion of the rural households. However, enhancing vegetable farmers to reach markets and actively engage in the markets is a key challenge influencing vegetable production in South Africa. The perishable nature of vegetables demands effective marketing channels. The main objective of the study was to investigate factors affecting vegetable farmers’ choice of market channels in King Sabata Dalindyebo Municipality in the Eastern Cape Province. The study adopted a multistage stratified sampling method. Multi-stage sampling was done in which the first stage involved selecting respondents from the different wards in the King Sabata Dalindyebo Municipality. This was done through stratification by separating vegetable smallholder farmers and homesteads within that area (different villages within the area). This was followed by employing quota sampling through the different households and smallholder farmers within those areas in order to determine households and smallholder farmers that are able to provide the needed information concerning the choice of market channels. By stratified random sampling based on village, project membership and smallholder farmers, a sample of 110 heads of households was chosen for the study in eight different wards of KSD. The sampling for this study was based on a large sampling technique of n ≥ 30 as there is no information regarding the population of the total number of homesteads and smallholder farmers that are under each traditional leader (chief) in these study sites. This sample comprises homesteads and smallholder farmers that took part in vegetable production. A structured questionnaire together with field observations and measurements were adopted for obtaining information from household respondents. Descriptive statistics (percentages, means, frequency tables and figures) and a Multinomial logistic regression model have been used to analyze the data. From the Multinomial logistic regression results, farming experience is positively related to choice of farm gate market channel at 1percent level of significance. The age of vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. The level of education of the vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. Moreover, the results also showed that the inputs used are positively related to the choice of farm-gate as well as direct to consumer market channels at 5percent significance level. Similarly, means of transportation used and choice of marketing channel of the vegetable farmers are positively related at 1percent significance level at the direct to consumer choice of market channel. Furthermore, access to extension services indicated a positive relationship to the choice of market channel amongst the smallholder vegetable farmers for the direct to consumer at 5percent level of significance which is insignificant for that of the farm-gate. There is therefore, need for strong extension support in assisting the farmers to diversify their production, provide market information thereby enhancing production and opening up channels for market accessibility. This is seen to enhance rural households’ livelihood outcomes in agricultural production thereby improving the choice of market channels by smallholder vegetable farmers and alleviating poverty and improving food security. More so, the government and research institutes need to organize workshops and extension programs in famer’ training for more efficiency in their vegetable production and marketing.
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Cost and return analysis of smallholder organic crop farms in the Eastern Cape province of South Africa
- Authors: Akharume, Celestine Ohi
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Profit -- South Africa -- Eastern Cape Organic farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/13730 , vital:39703
- Description: Agriculture remains an influential sector in South Africa in terms of its contributions to economic development and poverty reduction, notably in the rural areas. These include providing sufficient and affordable food for the constantly increasing population, providing cheap food for the developing industrial labor force, providing employment and livelihoods and supplying raw materials to the country’s rising domestic industrial sector. Despite phenomenal progress in integrating smallholder farmers into the mainstream economy since democratic reforms in the country, deteriorating soil quality through poor agricultural practices, land erosion, acidification and concerns about production and productivity and compliance with food safety standards are beginning to loom high. Hence, organic farming is identified as one of the sustainable approaches to farming. It is also believed to guarantee substantial net gains and to promote sustainable natural resource management with the possibility of enhancing overall agricultural productivity. Notwithstanding, organic farming is still being perceived negatively in South Africa and there is shortage of empirical studies which focus on cost and return of smallholder organic crop farms. It is in this regard that the study therefore seeks to analyze cost and return of smallholder organic crop farms in the Eastern Cape Province to contribute to knowledge on the relative economic advantages of organic agriculture at the smallholder sector. Specifically, the study profiled the socioeconomic characteristics of smallholder organic crop farmers, determined costs and returns, and estimated profitability and factors that constrain profitability of the smallholder organic crop farms. The research design used in this study was cross-sectional where data were collected at a single point in time. A multi- stage random sampling technique was used to obtain primary data from one hundred and sixty smallholder organic crop farmers (160) with the aid of structured questionnaires. Primary data were collected on demographic and socioeconomic characteristics, variable costs and fixed costs, and returns from the organic crop farms. Data collected were analyzed by Statistical Package for Social Sciences (SPSS) and the descriptive and inferential statistics involved were mean, frequency proportion, gross margin and net income analysis as well as OLS regression analysis. The results of the descriptive analysis showed that the proportions of women involved in organic crop farming were higher than that of men and many of the farmers cultivated on less than 1.0ha. The analysis of the data also showed that smallholder organic crop farms are undoubtedly profitable farm business, with attractive net farm income and lower production costs. The findings further affirmed that factors such as household size, gender, farming experience, number of years in school, farm size, source of labor and access to credit affect profitability and net farm income. Therefore, government is advised to encourage the practice of organic farming by giving short-term loans to smallholder farmers, to enable them invest more in their organic crop farms. There is also need for government to organize workshops and lectures, educating and enlightening individual smallholder organic crop farmers on modern organic farming techniques to enhance profitability of smallholder organic crop farms.
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Elicitation of risk preferences of smallholder irrigation farmers in the Eastern Cape Province of South Africa
- Authors: Modjadji, Mathlo Itumeleng
- Date: 2017
- Subjects: Irrigation farming -- South Africa -- Eastern Cape Risk-return relationships -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/4846 , vital:28534
- Description: Although several studies have investigated commercial farmers’ risk preferences, there is still lack of information on the risk attitudes and risk preferences of smallholder farmers in South Africa. Risks associated with the adoption of new agricultural technology need to be explored in order to address the transition from homestead food gardening to smallholder irrigated farming. This study seeks to understand risk perception of smallholder irrigation farmers by linking constraints to commercialisation, adoption of new agricultural technologies and risk preferences of smallholder farmers in the Eastern Cape Province of South Africa. The overall objective of this research is to determine risk preference patterns and attitudes that influence the transition from homestead food gardening to irrigated farming of smallholder farming systems in the Eastern Cape province of South Africa. Specifically the study was to pursue the following objectives: (i) describe the demographic and socio-economic characteristics of smallholder farmers; (ii) describe existing farming systems among smallholder farmers in the study area; (iii) analyse the adoption of new agricultural technology by smallholder irrigation farmers; (iv) assess the risk perception of smallholder irrigation farmers and elicit farmers risk preferences, and (v) empirically analyse farmers sources of risk and risk management strategies. The outcome of this will inform policy formulation that have implications for technology adoption, increase smallholders capacity to bear risk and enable government and other role players have a clear understanding of smallholder farmers decisions. A total of 101 respondents were surveyed, consisting of 38 smallholder farmers and 63 homestead food gardeners in the Eastern Cape. Questionnaires were used to record household activities, socio-economic and institutional data as well as household demographics through personal interviews. The ordered probit model was applied due to the ordered nature of the dependent variable. The analysis was used to empirically analyse the determinants of farmers ‘risk preference status. The ordered probit model successfully estimated the significant variables associated with the farmer‘s adoption decisions. These were the farmer‘s age, household size, land size, locational setting, risk attitude, number of livestock (goats and chicken) and asset ownership. Homestead food gardeners were less risk averse that the smallholder farmers. Farmers who reside in the sub-wards Binfield and Battlefield were more likely to take risk than those who reside in Melani. This suggests the presence of local synergies in adoption which raises the question about the extent to which ignoring these influences biases policy conclusions. The negative correlation between land size and adoption implies that smaller farms appear to have greater propensity for adoption of new agricultural technology. This finding is supported by several studies reviewed in the literature that allude to the fact that homestead food gardeners tend to be smaller than smallholder farmers. By means of the Principal Component Analysis (PCA), seven principal components (PCs) that explained 66.13 percent of the variation were extracted. According to the loadings, the factors 1 to 7 can best be described as ‘financial and incentives index’, ‘input-output index’, ‘crop production index’, ‘labour bottleneck index’, ‘lack of production information index’, ‘lack of market opportunity index’, and ‘input availability index’ respectively. In general, price, production and financial risks were perceived as the most important sources of risk. Socio economic factors having a significant effect on the various sources of risk are age, gender, education, location, information access and risk taking ability. The most important traditional risk management strategies used by the surveyed smallholder farmers in Eastern Cape are crop diversification, precautionary savings and participating in social network. The findings are consistent with economic theory which postulates that in the absence of insurance markets, poor farm households tend to be risk averse and are reluctant to participate in farm investment decisions that are uncertain or involve higher risk.
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Enhancing productivity and market participation for poverty reduction and shared prosperity in South Africa
- Authors: Avuletey, Richard
- Date: 2017
- Subjects: Poverty -- South Africa Economic development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/13978 , vital:39736
- Description: There have been several attempts by the South Africa government to improve the agricultural productivity on smallholder farms since the end of apartheid. In spite of the government support, agricultural productivity has stagnated for several years across the Eastern Cape rural communities including Mthatha and Qamata. The aim of this study was to understand the roles played by irrigation adoption and market participation in addressing poverty reduction and shared prosperity levels of smallholder farmers in Eastern Cape of South Africa. Data were collected using purposive and random sampling approach through the use of the snowball method. To collect data, a questionnaire was designed and administered through face-to-face interviews. Overall, 200 farmers were interviewed both at Mthatha and Qamata irrigation scheme to represent the farmers in the area. The collected data were analysed using both parametric and non-parametric methods. The non-parametric methods used include descriptive analysis, estimation of gross margins as a proxy for profitability. The Stochastic Frontier Analysis (SFA), Binomial Logistic Regression (BLR), Ordinary Least Squares (OLS), tobit censored regression and propensity score matching (PSM) were the parametric methods used in the study. Profit efficiency was measured using the normalized transcendent logarithmic profit frontier approach (Cobb-douglas). Stochastic Production Frontier (SPF) technique was used to determine the technical efficiency of individual farmers and to identify the major factors that influence technical efficiency. Binomial logistic regression was used to determine factors affecting irrigation adoption and market participation among smallholder farmers. OLS was used to estimate the impact of institutional characteristics, socio-economic and agronomic factors on smallholder farmers’ level of market participation for selected crop enterprises. Lastly, tobit regression and propensity score matching (PSM) analyses were used to estimate the impact of irrigation technology adoption on poverty reduction in the province. The results of the descriptive statistics of the overall sample revealed an average age of 61 years, and mean household size of 4.6 persons with majority of the household head having at least obtained some primary school education (59.5percent). Most of the household heads interviewed were men (68.5percent). Most farmers are single (65percent) with regard to their marital status. Farming is viewed as major source of livelihood for smallholders with an average income of R12523.37 for overall sample and income of R15559.80 and R5795.59 per crop season, respectively, for irrigators and non irrigators. Smallholder irrigators generated a higher gross margin of R7585.26, R21966.89 and R6266.07 from maize, cabbage and potato enterprises, respectively, compared to their non irrigator counterparts in maize (R131.39), cabbage (R10938.04) and potato (R3433.31) enterprises. The results of the frontier profit model revealed mean profit efficiency of 90percent, 99.99percent and 99.99percent, respectively, for maize, cabbage and potato.The binary logistic regression model for irrigation adoption indicated that years in school, cooperative membership, off-farm income, credit access and distance to market significantly explain smallholder farmers’ irrigation adoption decision. On the other hand, age of household head, market support, farm size, livestock income and distance to market were the key variables that accounted for smallholder farmers’ market participation adoption behaviour. The findings from the stochastic production frontier (SPF) indicate that smallholder farmers are technically efficient in maize and cabbage enterprises both at 99.99percent. Lastly, the findings from the Tobit regression and propensity score matching are consistent across the two methods, suggesting that being a member of irrigation adoption has a positive significant impact on income of smallholder farmers. Irrigation and market participation appear to have a significant and positive impact on smallholder poverty reduction (measured by crop income) for those farmers engaged in them. The findings from this study provide useful practical insights for policy makers, farm advisers and researchers in the design of effective and efficient policies, programmes and projects which can affect the adoption of irrigation technology and market participation.
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Evaluation of the socio-economic performance of smallholder irrigation schemes in Idutywa Village of the Eastern Cape Province
- Authors: Jiba, Phiwe
- Date: 2017
- Subjects: Irrigation farming -- Economic aspects Farms, Small -- South Africa -- Eastern Cape Agricultural development projects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/4705 , vital:28497
- Description: South Africa and other African countries are faced with high levels of food insecurity and poverty levels as a result of slow growth of the macro economy and weak or sluggish rural development. Irrigation scheme development is seen as an important strategy to address the challenges faced by households in rural areas and restores growth and enhanced livelihoods. While the international experience shows that Irrigation schemes are potentially transformative of poor communities and have been operational for many years now, there is no marked improvement in living conditions of rural households in terms of livelihoods and income. This raises the question as to whether or not the schemes are viable from a socio-economic perspective and whether or not there are reasons for concern and revision of the policy framework for smallholder irrigation schemes. As a result of that, the broad objective of the study was to evaluate the contribution of smallholder irrigation schemes to household income and food security of rural households in Idutywa village of the Eastern Cape Province in South Africa. Specifically, this research investigated the major factors that influence their performance, impact of irrigation farming on rural livelihood and household food security as well as identifying the possible opportunities of production that would improve their performance. The study was carried out in Idutywa villages of the Eastern Cape Province in South Africa and employed survey data obtained from 107 households. The study employed a cross-sectional research design and the study employed stratified random sampling. The study made use of descriptive and inferential statistics to estimate the central tendency and dispersion as well as testing the hypothesis that there is a difference in the contribution between irrigators and non-irrigators using STATA and SPSS. Probit regression model was used to estimate factors that influenced the performance of smallholder irrigation schemes. The descriptive statistics employed included means, percentages and frequencies on the socio-economic characteristics of households in the study areas. The results show that females were dominant with a representation of 66.7 percent. The majority of households were aged and the mean age was 65 years. High level of illiteracy in the project area was revealed by the data. The average number of years, households spent in school was between 6 years to 10 years in school. Farming was found to be the major agricultural economic activity. Sixty-three (63 percent) were full time farmers. The results further show that household size ranges between 1 to 5 persons. The households were shown to be mostly dependent on social grant with household income hovering around R 1 000. The results from propensity score matching revealed that irrigation exerts a positive impact on household income. This provides sufficient evidence that irrigation schemes do make a contribution to rural livelihoods through their effect on household income and food security. This implies that government should continue investing in irrigation schemes as part of a strategy to grow the rural economy and improve rural livelihoods. This is in line with the Agricultural Policy Action Plan (APAP) and National Development Plan (NDP) of South Africa. Probit analysis suggests that age of the households, household size and market were some of the key determinants that positively influenced households’ decision to participate in smallholder irrigation schemes while access to credit had significant but negative effect on households’ decision to participate in smallholder irrigation schemes. Based on the findings highlighted above, it is recommended that addressing such barriers may create enabling conditions that would encourage households to access and participate more effectively in smallholder irrigation schemes.
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Farm level cost-benefit analysis of conservation agriculture for maize smallholder farners in Okhahlamba Municipality in Kwa-Zulu Natal Province, South Africa
- Authors: Tafa, Sanelise
- Date: 2017
- Subjects: Agriculture -- South Africa -- Cost effectiveness , Agricultural conservation -- South Africa -- Kwa-Zulu Natal , Land use -- Economic aspects -- South Africa , Sustainable agriculture -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/2809 , vital:28094
- Description: Land degradation is a serious problem that many poor communities face and this worsens their vulnerability and therefore, poses a threat to food security, as it reduces yield, forces farmers to use more inputs, and disproportionately affect the smallholder farmers in remote communities that also suffer diverse infrastructure disadvantages. In response to that, the international development agencies, donors, and Non-Governmental Organizations (NGOs), especially faith-based organizations have turned towards sustainable farming approaches. Much attention has been paid to a combination of sustainable farming measures which are packaged under the “Conservation Agriculture” (CA) banner. The previous work in the KZN Province and elsewhere has demonstrated that CA has the potential to improve the soil structure, thereby reversing the effect of soil degradation. Consequently, many of the farmers in the areas in which these demonstrations have been conducted appreciate the ecological and economic value of adopting CA. However, the on-farm financial benefits of adopting a CA specific tillage practice are not as well known or thought to be as pronounced. By means of integrating field survey, reviewed literature, and econometric analysis, this study assessed the farm level cost-benefit analysis of conservation agriculture for smallholder maize farmers in OLM, specifically in one demonstration village of Bergville town. The analysis is based on the case study of the NGO’s work in which they had selected a community and participating households who received assistance in a number of ways such as maize seed, soil preparation, and CA planters. To analyse the farm level cost-benefit analysis, descriptive, linear regression, gross margin (GM) and appraisal indicators such as Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) were used. The descriptive analysis, used to analyse the factors affecting the extent of adoption of CA revealed that socio-economic characteristics have the influence on the level to which a farmer responds to incentives. Linear regression model used in this study showed that years in farming, involvement in joint farmer’s group, and use of cover crops have the significant effect on the extent of adoption of CA. Moreover, the calculated gross margins of the two tillage systems were different, revealing higher Gross Margins for CA plots than for conventional plots. The major cause of the difference was found to be differences in the variable costs. When using appraisal indicators (NPV, BCR, and IRR) the study projected a 10-year period at 8% and 10.5% discount rates. The study also revealed positive NPVs for both CA and conventional agriculture. The positive sign implies that there are positive pay-offs for investing in both trial and control plots. However, trial plots have larger NPVs compared to control plots, meaning that there are less additional returns for investing in control plots compared to trial plots. Results also reveal that with 10.5% discount rate, the NPVs are lower than with 8% discount rate, showing that lower discount rates are consistent with higher performance over the long term. This therefore means that at lower discount rate, it is more viable to produce maize using CA than using conventional tillage system. In the case of BRC presented in the study, it was revealed that at both low and high discount rates, the trial plots were more viable than the control plots. Finally, the IRR presented in the study reveal that the trial plots would be able to pay their way much faster than the control plots. Overall, the study found that there are incentives to adoption of CA compared to conventional farming. The message from the different results arising from the use of different discount rates is that farmers should receive assistance at low cost of capital in order for their operations to be viable and this works out well over the long term as shown by the 10-year period projections.
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Investigating adaptation strategies to climate change by smallholder farmers : evidence from, Lesotho
- Authors: Morahanye, Mokhantso Lilian
- Date: 2017
- Subjects: Climatic changes -- South Africa Farms, Small -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/5807 , vital:29397
- Description: In Lesotho, agriculture is the dominant activity and involves crop and livestock production, range management and forestry activities. The current climatic variability in the country has caused decline in food production as result of increased dry spells, frequency of droughts and erratic rainfall. These climatic events are expected to have a significant impact on the livelihoods of the smallholder farmers. In combatting the harmful effects of climate change, smallholder farmers in Lesotho have employed various adaptation strategies based on their local knowledge and limited means. While these strategies may not be optimal they obviously constitute the basis for potentially effective improved technologies which can be developed and communicated through an efficient extension system, hence the need to precisely identify them and understand the factors that affect their choice. The main objective of this study was therefore, to identify the adaptation strategies and investigate the factors influencing smallholder farmers’ choice of those adaptation strategies. The study made use of multi-stage stratified sampling technique to select 160 respondents across four agro-ecological zones (lowlands, highlands, foothills and Senqu River Valley) in Leribe and Mohales’Hoek districts of Lesotho. Primary data for the study were collected using semi - structured questionnaire assisted with interview schedules administered on the respondents. Data collected were analysed using descriptive statistics and the multinomial logistics regression model. The results show that there are more males than females, majority of the respondents’ attained primary education, and older people dominate the smallholder farming system. The adaptation strategies used in MNL model were soil and water management, crop management and livestock management. The results further revealed that soil and water management strategies were the most adopted climate change strategies amongst smallholder farmers. It is understood that marital status, age and gender, income, land tenure, crop grown, extension services, and agro-ecological zones are the determinant factors influencing the choice of the adaptation strategies. This study concludes by recommending that smallholder farmers should be sensitised about climate change and both government and non-government organisations working on climate change related issues should direct their attention to rural communities to ensure effective response to climate change.
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Market participation effect on profitability of Zanyokhwe and Melani irrigation schemes in Eastern Cape province of South Africa
- Authors: Qapeshu, Sipumle
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/15639 , vital:40493
- Description: Profit accumulation is one of the key benefits associated with market access. However, market access tend to be the major challenge to many smallholder farmers and that ends up influencing their profitability. Irrigation schemes became one of the coping mechanisms for such farmers whereby they work collectively with the aim of overcoming the various technical and institutional constraints they confront. This study examined how profitability is influenced by market participation of irrigation schemes by identifying the market structures used by irrigation schemes and describing the challenges encountered by smallholder irrigation scheme members who operate in those markets and assessing the profitability of the identified market. Primary data were collected using a comprehensive questionnaire made up of both open and closed ended questions. Data were collected from two irrigation schemes namely: Melani irrigation scheme (Alice – Raymond Mhlaba Local Municipality) and Zanyokhwe irrigation scheme (Keiskammahoek – Amahlathi Local Municipality). Multi-stage sampling procedure was employed to select 100 respondents. SPSS (version 22) and Microsoft Excel computer programmes were employed to conduct the wide range of descriptive and inferential analyses involved. Frequencies, percentages and means were used for the descriptive results to describe the general characteristics (example: gender, age, marital status and level of education) and socioeconomic features of the respondents. A regression model (Binary logistic model) was done to examine how profitability is influenced by market participation. Furthermore, Gross Margin Analysis was conducted to find out the profitability of the market structures used by these irrigation schemes. The descriptive results showed that there is a relationship between profitability and market participation of smallholder irrigation schemes in Eastern Cape Province of South Africa, by participate on markets this can improve the livelihood of farmers. The binary logistic regression model results revealed that there are five significant variables at different statistical levels. Age (10percent), years of schooling (1percent), distance to markets (1percent), farming experience (5percent) and the household income at (10percent) had a statistically significant influence on the market participation decision. These findings suggest that an improvement in each of the significant variables can significantly influence farmer market participation decisions. Furthermore, based on the results of the study, policy recommendations are suggested, including improving dissemination of market information to farmers, encouraging farmers to seek markets before production and encouraging farmers to add value to their produce. The Gross Margin Analysis that was performed showed that in Melani irrigation scheme farmers had positive gross margins and farmers in Zanyokhwe irrigation scheme had a negative gross margin. Therefore it can be concluded that the market that is available to Zanyokhwe irrigation scheme does not give good returns, suggesting a need for changing the market so as to ensure that farmers derive meaningful access. The study recommends the improvements to market participation through credit to low income farmers, formal training, market information, better price and tax policies for smallholder irrigation farming to ensure sustainable improvements in profitability of smallholder irrigation schemes.
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Perceptions of rural households about the role and effect of biogas production on rural household income in Raymond Mhlaba Local Municipality
- Authors: Ngcobo, Lindiwe
- Date: 2017
- Subjects: Biomass energy -- South Africa -- Eastern Cape Renewable energy sources -- South Africa -- Eastern Cape Sustainable living -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10353/4694 , vital:28494
- Description: Rural development efforts to reduce poverty and enhance food security and generally improve livelihoods in developing countries continue to be constrained by high energy cost. For that reason, renewable energy has been identified as a possible panacea to fill this gap. Renewable energy is cheaper, more accessible and environmentally sustainable and promotes inclusivity. Biogas is a renewable energy that is readily available and easy to use by poor rural households. The use of biogas digesters among households in rural areas of developing countries is a well-known technology. The potential for biogas in these areas has been demonstrated and a strong economic case has been made. However, its adoption and use have been lower than expectations possibly as result of non-economic considerations, including social issues about which rural people hold different perceptions. Perceptions of rural households are important because they influence the behaviour to a large extent. Since limited access to affordable energy in rural areas has encouraged government and private organisations to initiate biogas projects to overcome the challenge, it is important to ascertain the factors that affect attitudes towards the technology. The present study sought to explore perceptions of rural households about biogas production towards rural household income in the Raymond Mhlaba Local Municipality. Specifically, this research investigated the state of biogas project being implemented by the University of Fort Hare’s Institute of Technology (FHIT), the perceptions of respondents towards biogas production and determine the contribution of biogas consumption to rural income. The study also aimed to identify the factors affecting the adoption of biogas production in the study area. The study was carried out in Melani village in Raymond Mhlaba Local Municipality in the Eastern Cape Province of South Africa and employed survey data obtained from 48 households who were enumerated to identify their perceptions on biogas production, with special emphasis on the role and effect contributed to rural income of Melani village. The study employed a cross-sectional research design and purposive sampling technique was used in data collection. Data were collected and captured in Excel and then analysed using the statistical package for social sciences (SPSS) Version 24 Descriptive statistics was used to examine socio-economic characteristics of households and state of biogas production in the area, Bivariate correlation analysis was used to determine the relationships among the key elements of perceptions of household towards biogas adoption, binary logistic model was used to estimate factors influencing adoption of biogas technology by households. The results show that women were dominant for both adopters and non-adopters of biogas. The majority of households were young with mean age of 40 years while for non-adopters were 65 years old on average. The results showed high levels of literacy amongst household adopters. Majority of the households for both adopters and non-adopters of biogas technology were married and unemployed and household size ranged from one to five persons, with social grants being dominant source of income. The bivariate correlation analysis suggests a positive effect of green pepper production and livestock ownership on biogas technology adoption. Age and level of education were negatively correlated with adoption of biogas. The cross tabulation analysis suggests that water scarcity, lack of knowledge about biogas technology, cattle ownership, lack of maintenance and repairing, flooded biogas digesters during rainy season are negatively associated with the uptake of biogas technology. The empirical results from binary logistic model suggest that land size was the key determinant of adoption behaviour towards biogas technology while age of the household head, source of income and level of education may have a negative influence on adoption of biogas technology. Based on the findings highlighted above, the study recommends strategies to encourage households to adopt biogas technology.
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Entrepreneurial development paths and livelihood strategies in smallholder irrigation schemes in the Eastern Cape province, South Africa
- 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
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Application of the Lewis Labour Surplus Model in the smallholder agricultural sector of the Eastern Cape Province
- Authors: Mgwangqa, Noluchulumanco Petronella
- Date: 2015-06
- Subjects: Economic development -- Mathematical models , Labor economics , Surplus (Economics)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/23969 , vital:62148
- Description: Rural-urban migration is historically connected to industrialization, urbanization and economic growth. The Lewis model is one of the development theories which provide a good framework of explaining the ways in which the fruits of economic development are spread. Previous studies done in Lewis model in South Africa are still minimal and are only related to the mining sector. Understanding the Lewis labour surplus model in the smallholder agricultural sector is very crucial as agriculture is one of the industries that contribute to the GDP of the country. The application of the Lewis model in the agricultural sector will contribute modestly to available knowledge on labour transition, clarify the ongoing argument on the broad application of the Lewis labour surplus model and more importantly is the need to tease out factors that confirm its validity to the given environment. Thus, the research examines the applicability of the Lewis labour surplus model in the smallholder agricultural sector of the Eastern Cape. It first describes the rate of rural urban migration, causes of rural-urban migration and determines the impact of rural-urban migration on agricultural production.The study was carried in Nkonkobe and Mnquma local Municipalities. Both local municipality were purposively selected because of the high numbers of youth known to have migrated to the urban centres.This study employed a cross-sectional research design. Data was collected at one point in time. Multistage random sampling technique was employed to arrive at the sample size of the study. Data was analysed using descriptive and econometric models. Linear regression model was used to examine the causes of rural urban migration and T-test was also used to test the wage rate difference between rural and urban areas. Lastly Cobb Douglas model was used to test the impact of rural-urban migration on agricultural production. The findings of this research showed that rural urban migration is caused by higher wages, employment opportunities, lack of infrastructure and access to productive land. The results also indicated that urban areas have higher wages than rural areas. Lastly this study provides evidence that the loss of labour through increases in the existing rural-urban migration following rapid urbanizations has an impact on agricultural production. The government should formulate effective policy making in tackling the problems that force people to leave their rural origin and narrowing the development gap between urban and rural areas through the introduction of rural development strategies and effective urban management. , Thesis (MSc) -- Faculty of Science and Agriculture, 2015
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Assessment of the willingness-to-pay for indigenous animal products in Ngxakaxa households in Mbashe local municipality in Eastern Cape province of South Africa
- Authors: Lusawana, Nangamso
- Date: 2015-06
- Subjects: Willingness to pay , Animal products
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/24879 , vital:63667
- Description: The demand for animal products is projected to increase progressively due to extensive urbanization, rapid growth of the human population and income dynamics. The demand for indigenous animal products will increase due to increasing income levels and this will be happening at the time when the supply of indigenous product is reducing as a result urbanization. The purpose of the current study was to assess consumption and willingness to pay for indigenous animal products looking at chicken and pork. The study intended to determine the socio- economic determinants influencing consumer willingness and consumption. Multistage sampling was used to derive a sample of 120 consumers at households. Primary data were collected using a structured interview schedule. Data collected was on household consumer characteristics, responses to different bid levels for indigenous meat and socio-economic determinants. The study used a Contingent Valuation Method to assess consumers‟ mean WTP for indigenous meat and logit model to determine socio-economic determinants influencing consumers‟ WTP. Results indicated that consumers were willing to pay an average premium of 33percent above the current prevailing price of convectional meat. They also showed that about 87percent of consumers who were willing to pay for indigenous meat and about 12.8percent who are willing to pay if the price increases. Of those who were willing a greater proportions were females. About 64percent of those who are willing and aware of indigenous meat most of them obtained information from neighbours and friends, Age, level of education, consumer awareness and monthly household income had a positive and significant effect on WTP. Most of the consumers indicated that indigenous meats are affordable, healthier when compared conventionally-produced meat. The main significant barrier to the purchase of indigenous meat was identified as its limited availability at convenient locations. The study recommends policy intervention aimed at facilitating development of marketing infrastructure, creation of awareness of important nutritional and health benefits of indigenous meat, and boosting the development of animal production systems that can add value to indigenous meat, so as to capture existing market opportunities. This would enhance food security and income generation of the small-scale resource-constrained farmers. , Thesis (MSc) -- Faculty of Science and Agriculture, 2015
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Factors affecting participation rates in farming in the rural areas of South Africa: case of Amathole District Municipality
- Authors: Zamxaka, Xolisa
- Date: 2015
- Subjects: Agricultural systems -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11233 , http://hdl.handle.net/10353/d1021291 , Agricultural systems -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape
- Description: South Africa and the rest of developing countries are faced with poverty and poor rural development. Rural participation in agricultural activities is one of the components that can be used to address the poverty challenge facing the people residing in rural areas. The broad objective of this research is to determine factors affecting participation rate in farming in the rural areas of Amathole District Municipality of Eastern Cape. In this study stratified random sampling method was applied in order to choose a sample out of 30 households that were interviewed 13 people belonged to Participants and 17 people belonged to non-Participants. The results from this study show that women participate a lot in farming activities. The multiple regression model was used to test the participation rates of the people in Amathole region specifically Phumlani area. A number of variables were considered in this study to assess the impact of different variables on participation in farming activities. The results showed that about 57% of the respondents are not participating in farming while 43% of the respondents participate. The farming participants that were interviewed all claim that there is a lack in farming support in the area. When there is no support of any kind, rural people would not be motivated to start development projects on their own. Consequently, this lack of farming support in the Phumlani area may have an influence on the number of farming participants. Therefore, the lack of support in the area may serve as a motivation for non-participants not to be influenced to farm. Rural farming needs to be promoted amongst the youth so as to protect and sustain agricultural growth in rural areas. The study has discovered that the youth of Phumlani is not actively involved in farming activities. Government can provide community members with farming resources so as to promote farming in the area. It would be wiser for the government to provide physical farming resources and implements rather than cash grants.
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The implications of smallholder agricultural productivity growth for poverty alleviation in post-apartheid South Africa
- Authors: Dwesini, Nontembiso Eugenia
- Date: 2015
- Subjects: Agriculture -- Economic aspects -- South Africa , Agricultural assistance -- South Africa , Sustainable development -- South Africa , Agricultural productivity -- South Africa
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11232 , http://hdl.handle.net/10353/d1021286 , Agriculture -- Economic aspects -- South Africa , Agricultural assistance -- South Africa , Sustainable development -- South Africa , Agricultural productivity -- South Africa
- Description: The adoption of the Millennium Development Goal 1(MDG 1) of reducing the rate of poverty to half of the 1990-level by 2015 has been a challenge faced by the developing countries including South Africa. The foundations of democracy have to be continuously assessed so that the obstacles faced by South Africa as it strives towards sustainable democracy are addressed. With agricultural sector identified as having the potential to alleviate poverty compared to the mining sector, manufacturing sector and services sector, it faced the challenges that include: (i) accelerating agricultural productivity; (ii) reducing poverty and vulnerability; and (iii) narrowing rural-urban income disparities. The identification of the critical linkages in the agricultural development framework allows for effective strategic planning, effective decision making and appropriate policy formulation. Expectedly, the sector has attracted considerable fiscal policy interest and public investments. The primary aim of this research study is to assess the extent to which smallholder agricultural productivity growth alleviates poverty in South Africa. The statistical and econometric techniques namely; Johansen technique of co-integration analysis (1995), analysis of covariance and correlation, Vector Error Correction Model, are employed in this research study. The data description, data sources, expected relationship between variables and indexation of data are done. The drivers and cause-effect relationships between agriculture and poverty reduction are investigated. The employed models allowed for an exploration of plausible future growth in agricultural elasticity of poverty and the possibility of reducing poverty level in South Africa. The data is obtained from the National Department of Agriculture from 1994 -2013. The analysis of the results strongly confirms that agricultural productivity has a significant inverse relationship to the levels of poverty in South Africa. The outcome of the analysis will contribute to improved decision making on the use of public funds in agriculture.
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