Contribution of home gardens to rural household income in Raymond Mhlaba Local Municipality, Eastern Cape Province, South Africa
- Authors: Alaka, Kolawole O
- Date: 2017
- Subjects: Gardens Food security Sustainable agriculture -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/8176 , vital:31826
- Description: For decades, home gardens have proved to be significant to rural inhabitants by providing a wide range of useful products such as fruits, vegetables and medicine, but there is lack of quantitative information on its benefits and its contributions to income of rural household. The main objective of this study is to investigate contributions of home garden to income of rural household in Raymond Mhlaba Local Municipality, formerly Nkonkobe Local Municipality of Eastern Cape Province South Africa. The stratified random sampling method was applied in order to choose a sample of 160 household that were interviewed by means of semi-structured questionnaires. The study was conducted among 80 households engaging in home gardens and 80 non- participating households in the study area. Frequencies and mean were used to describe the general characteristics of the households as well as ownership patterns of home gardens. In order to determine the factors that influence home gardens ownership binary logistic regression model was used. The overall model show that level of education, total household income and access to land significantly affects ownership of the home garden positively. Social grant has the highest contributions to total household income for both category while income generated from home garden has the second largest share to total household income, this show that the majority of rural households in the study area rely on social grant as their source of income. Cabbage, spinach, potatoes and carrots were the dominant crops in home gardens. In view of research findings, there is still a wide room for further improvement in home gardens practises in study area. Contrary to expectations, home gardens have the potential to improve livelihood significantly if the rural households take the necessary steps to make the production more sustainable. Based on research findings several policy proposals are suggested. These include investment in agricultural programmes that will empower the rural households like Massive food projects, Siyazondla and related home garden initiatives. Home garden is the major source of food and income generation in Raymond Mhlaba Municipality. Therefore, government should provide sufficient credit facilities, extension services together with marketing arrangement in the area.
- Full Text:
- Date Issued: 2017
- Authors: Alaka, Kolawole O
- Date: 2017
- Subjects: Gardens Food security Sustainable agriculture -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/8176 , vital:31826
- Description: For decades, home gardens have proved to be significant to rural inhabitants by providing a wide range of useful products such as fruits, vegetables and medicine, but there is lack of quantitative information on its benefits and its contributions to income of rural household. The main objective of this study is to investigate contributions of home garden to income of rural household in Raymond Mhlaba Local Municipality, formerly Nkonkobe Local Municipality of Eastern Cape Province South Africa. The stratified random sampling method was applied in order to choose a sample of 160 household that were interviewed by means of semi-structured questionnaires. The study was conducted among 80 households engaging in home gardens and 80 non- participating households in the study area. Frequencies and mean were used to describe the general characteristics of the households as well as ownership patterns of home gardens. In order to determine the factors that influence home gardens ownership binary logistic regression model was used. The overall model show that level of education, total household income and access to land significantly affects ownership of the home garden positively. Social grant has the highest contributions to total household income for both category while income generated from home garden has the second largest share to total household income, this show that the majority of rural households in the study area rely on social grant as their source of income. Cabbage, spinach, potatoes and carrots were the dominant crops in home gardens. In view of research findings, there is still a wide room for further improvement in home gardens practises in study area. Contrary to expectations, home gardens have the potential to improve livelihood significantly if the rural households take the necessary steps to make the production more sustainable. Based on research findings several policy proposals are suggested. These include investment in agricultural programmes that will empower the rural households like Massive food projects, Siyazondla and related home garden initiatives. Home garden is the major source of food and income generation in Raymond Mhlaba Municipality. Therefore, government should provide sufficient credit facilities, extension services together with marketing arrangement in the area.
- Full Text:
- Date Issued: 2017
Market participation and value chain integration among smallholder homestead and irrigated crop farmers in the Eastern Cape province of South Africa
- Authors: Mdoda, Lelethu
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Irrigation farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10353/15023 , vital:40152
- Description: The irrigation schemes had been established over the years and now are operational but there is no marked improvement in the living conditions of the rural farmers and households. Smallholder farmers still face numerous constraints in market participation that hinder smallholder farmers, irrigators and homestead growth which have been attributed to lack of access to markets and technical expertise. Despite the government efforts, smallholder farmers effectively functioning in the agro-food chains, high-valued markets and commercial agricultural markets are rare; this indicates that the objective to allow smallholder farmers to advance their livelihood through participating in commercial agro-food chains has not yet been met. Farmers in the Eastern Cape produce many crops which they mainly sell in informal local markets; there is minimal number of smallholder farmers supplying their produce to the formal markets. Irrigation development is very crucial to the development of the agricultural sector as it ensures improvement in yields and reduces rural poverty through creating rural employment, enhance smallholder farmers’ market participation and enhance market access policies by smallholder farmers as means to achieve the Sustainable Development Goals The study was conducted in the Eastern Cape Province and employed survey data obtained from 200 smallholder irrigated crop farmers and homestead gardeners. A multistage stratified sampling procedure was used in which the first stage involved selecting the study areas. This was followed by the selection of the district and then the respondents. The farmers were selected from three District Municipalities which have operational irrigation schemes, namely OR Tambo, Amathole and Chris Hani District Municipalities in the province. STATA and SPSS were used to analyze the data. The Heckman model was applied to examine factors influencing farmers’ decision to participate in market among crop producing farmers in the province. In the first stage Heckman analysis, the decision as to whether or not to participate (which is a binary choice situation) is used to undertake the maximum likelihood estimation (MLE). In the second stage, the conditional quantity sold (continuous variable) is assumed to follow a truncated normal regression model, whereby the MLE is estimated by fitting a truncated normal regression of quantity sold. Gross Margin and Net Farm Income were used to measure farm profit as well as multiple regression analysis to estimate determinants of profitability in the study area. Profit efficiency was measured using the normalized transcendent logarithmic profit frontier approach (translog). he descriptive statistics employed include means, percentages and frequencies mostly of the socio-economic characteristics of farmers in the study area. The results show that males were dominant with the representation of 61.7percent. The majority of farmers were aged and the mean age was 60 years, indicating that farmers in the province are old which has implication for productivity and market participation. High level of illiteracy is shown in the data and mean household size of 5 persons with the household head having at least obtained some primary school education.The irrigated crop farmers and homesteads were found to have farm size under 4 ha. About 86.5percent were full time farmers and Farming is their major source of livelihood. Smallholder irrigators and homestead gardeners derive their income from social grants and remittances. This thesis found out that majority of the farmers do not participate in markets. In this instance, farming becomes a scapegoat for failure to enter alternative labour markets. The average annual on-farm production income from smallholder irrigators was R7 860.27 and homestead gardeners was R5 915.50. The empirical results from probit model suggest that age of the farmer, level of education of the farmer, household size, farm organization, access to extension, distance to markets, occupation and farm experience were some of the key determinants that had significant and positive effects on farmers’ decision to participate in markets while access to credit, transport to the markets and farm size were some of the key determinants that had significant and negative effect on farmers’ decision to participate in markets. The volume of crops sold to the market is determined by gender, age, years spent in school, distance to the market, farm experience, household size, access to extension, membership in farm organization and non-farm income.
- Full Text:
- Date Issued: 2017
- Authors: Mdoda, Lelethu
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Irrigation farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10353/15023 , vital:40152
- Description: The irrigation schemes had been established over the years and now are operational but there is no marked improvement in the living conditions of the rural farmers and households. Smallholder farmers still face numerous constraints in market participation that hinder smallholder farmers, irrigators and homestead growth which have been attributed to lack of access to markets and technical expertise. Despite the government efforts, smallholder farmers effectively functioning in the agro-food chains, high-valued markets and commercial agricultural markets are rare; this indicates that the objective to allow smallholder farmers to advance their livelihood through participating in commercial agro-food chains has not yet been met. Farmers in the Eastern Cape produce many crops which they mainly sell in informal local markets; there is minimal number of smallholder farmers supplying their produce to the formal markets. Irrigation development is very crucial to the development of the agricultural sector as it ensures improvement in yields and reduces rural poverty through creating rural employment, enhance smallholder farmers’ market participation and enhance market access policies by smallholder farmers as means to achieve the Sustainable Development Goals The study was conducted in the Eastern Cape Province and employed survey data obtained from 200 smallholder irrigated crop farmers and homestead gardeners. A multistage stratified sampling procedure was used in which the first stage involved selecting the study areas. This was followed by the selection of the district and then the respondents. The farmers were selected from three District Municipalities which have operational irrigation schemes, namely OR Tambo, Amathole and Chris Hani District Municipalities in the province. STATA and SPSS were used to analyze the data. The Heckman model was applied to examine factors influencing farmers’ decision to participate in market among crop producing farmers in the province. In the first stage Heckman analysis, the decision as to whether or not to participate (which is a binary choice situation) is used to undertake the maximum likelihood estimation (MLE). In the second stage, the conditional quantity sold (continuous variable) is assumed to follow a truncated normal regression model, whereby the MLE is estimated by fitting a truncated normal regression of quantity sold. Gross Margin and Net Farm Income were used to measure farm profit as well as multiple regression analysis to estimate determinants of profitability in the study area. Profit efficiency was measured using the normalized transcendent logarithmic profit frontier approach (translog). he descriptive statistics employed include means, percentages and frequencies mostly of the socio-economic characteristics of farmers in the study area. The results show that males were dominant with the representation of 61.7percent. The majority of farmers were aged and the mean age was 60 years, indicating that farmers in the province are old which has implication for productivity and market participation. High level of illiteracy is shown in the data and mean household size of 5 persons with the household head having at least obtained some primary school education.The irrigated crop farmers and homesteads were found to have farm size under 4 ha. About 86.5percent were full time farmers and Farming is their major source of livelihood. Smallholder irrigators and homestead gardeners derive their income from social grants and remittances. This thesis found out that majority of the farmers do not participate in markets. In this instance, farming becomes a scapegoat for failure to enter alternative labour markets. The average annual on-farm production income from smallholder irrigators was R7 860.27 and homestead gardeners was R5 915.50. The empirical results from probit model suggest that age of the farmer, level of education of the farmer, household size, farm organization, access to extension, distance to markets, occupation and farm experience were some of the key determinants that had significant and positive effects on farmers’ decision to participate in markets while access to credit, transport to the markets and farm size were some of the key determinants that had significant and negative effect on farmers’ decision to participate in markets. The volume of crops sold to the market is determined by gender, age, years spent in school, distance to the market, farm experience, household size, access to extension, membership in farm organization and non-farm income.
- Full Text:
- Date Issued: 2017
The effects of Real Exchange Rate (RER) on the export competitiveness of South African fruit industry
- Authors: Peter, Bathathu
- Date: 2017
- Subjects: Foreign exchange rates -- South Africa Free trade -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/15732 , vital:40514
- Description: South Africa has diverse climatic conditions that allow it to grow and produce various fruit cultivars across the country. Limpopo, Western Cape, Mpumalanga, Eastern Cape, KwaZulu-Natal, and Northern Cape are South Africa’s main fruit production regions. In 2015, fruits ranked the 7th largest sector on exports and the largest in South Africa’s agricultural exports. South Africa’s major export partners for fruit in the same year were Netherlands, United Kingdom, Russian Federation, United Arab Emirate, and Hong Kong China. Correspondingly, exports to non-traditional markets such as India and China have increased rapidly. South Africa has prioritized exports as the engine for economic growth and job creation. The country has two major export destinations namely; the high income countries of Europe and North America, and the low-income markets of Africa, especially Southern African Customs Union (SADC) countries. South Africa’s Real Exchange Rates (RER) fluctuated widely since early 1970’s. This occurred after the collapse of the Bretton Woods system of fixed exchange rates in 1973. South Africa’s RER has been depreciating since then. Consequently, there has been a proliferation of debates on the relationship between the RER and exports performance. The most commonly held belief is that the RER depresses trade thereby increasing riskiness of trading activity. The South African fruit industry has been operating in the background of the depreciating RER. A high degree of RER volatility has posed a serious challenge to policy making environment because the magnitude of its impacts on trade flows is still unknown. The policy making environment becomes stagnant. Policy makers and researchers continue to examine the effects of RER on trade for an indefinite period. The South African fruit producers are unable to anticipate income earnings from trade due to increased risks associated with RER. South Africa’s agricultural sector encompasses the Historically Disadvantaged Individuals (HDI) which the country wants to prioritise and give them opportunities to participate in trade. The risks associated with the RER impair the development of the HDIs. The Thesis seeks to examine South Africa’s trade performance and the competitiveness of South African fruit industry as well as the effects of the RER. Specifically, the Thesis examines South Africa’s global fruit trade performance, explores the export competitiveness of South African fruit industry, and estimates the export demand equation for South African fruit exports to the world. The Thesis used the data obtained from the Department of Agriculture, Forestry and Fisheries (DAFF) for the period of 1080 to 2015 to estimate the export demand equation. The data from the International Trade Centre (ITC) for the period of 2001 to 2015 was used to examine South Africa’s global trade performance and competitiveness. The analytical framework followed incorporates the South Africa’s fruit Trade Performance Index (TPI) and the effects of RER on South African fruit industry. The TPI presents South Africa’s global fruit trade and its competitiveness using Trade Map, while the effects of RER are investigated on local fruit sales and on exports using the regression model. The Trade Map is the dominant trade analysis tool increasingly being used by the researchers and policy makers to make informed decisions on trade issues. The Thesis also made use of the Trade Map tools to examine South Africa’s global fruit trade performance and its competitiveness. The market analysis tools developed by the International Trade Centre (ITC) are: Trade Map, Market Access Map, Investment Map, Trade Competitiveness Map, Standard Map, and the Procurement Map. Trade Map, Trade Competitiveness Map, and the Market Access Map are used. Subsequently, the Thesis applied econometric techniques to examine the effects of RER on South Africa’s fruit exports and on fruit sales on local markets using the regression model. In this regard, the Thesis followed the export demand equation used by Todani and Munyama (2005). De Vita & Abbott (2004), and Tandra-Ragoobur & Emamdy (2011). Todani & Munyama (2005), to estimate the relationship between exchange rate volatility and South African export. Real exports and the exchange rate volatility were the main variables used in the model. The relative prices and the income of South Africa’s trading partner were also included in the model. The results show that South Africa was the 11th largest fruit exporter after Viet Nam and Spain in 2015. During the same year, the U.S. was the largest exporter of fruit with 14percent in the world, followed by Spain and Netherlands with 9percent and 6percent, respectively. The fruit industry ranked 8th largest exporter and the largest in agricultural sectors in 2015. Its exports totaled R 37 133 million in 2015, from R 30 566 million in 2014. South Africa’s total fruit exports accounted for a 33percent share on total agricultural exports and 4percent on South Africa’s total exports in 2015. The coefficients of the regression model were all statistically significant. Most importantly, an inverse relationship between the relative price and South Africa’s real fruit exports was established. Moreover, the RER had a significant negative effect on the South Africa’s fruit export competitiveness. This imposes more pain on the development of the HDIs in South Africa’s agricultural sector. South Africa has desire to move away from the export of raw materials and traditional export commodities and promote the export of value added products, including the agro processing products. Accordingly, this affects the entire value chain of the agricultural sector, since trade cannot be anticipated. On the basis of the regression results shown by the variables included in the model, the objectives of the study were accomplished. South Africa’s fruit exports are said to be more competitive to the European markets as a result of the weaker rand relative to other countries. The overview of South Africa’s fruit trade shows that South African fruit exports are more competitive across the globe. This is probably because the South Africa’s fruit exports for the top ten commodities are ranked almost the first five in the European markets and the first ten for the world. The results are supported by previous documented research, which emphasised that the weaker rand leads to more South African fruit produce being absorbed by the international markets. The evidence from the results shows that the RER stimulates the fruit export competitiveness.
- Full Text:
- Date Issued: 2017
- Authors: Peter, Bathathu
- Date: 2017
- Subjects: Foreign exchange rates -- South Africa Free trade -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10353/15732 , vital:40514
- Description: South Africa has diverse climatic conditions that allow it to grow and produce various fruit cultivars across the country. Limpopo, Western Cape, Mpumalanga, Eastern Cape, KwaZulu-Natal, and Northern Cape are South Africa’s main fruit production regions. In 2015, fruits ranked the 7th largest sector on exports and the largest in South Africa’s agricultural exports. South Africa’s major export partners for fruit in the same year were Netherlands, United Kingdom, Russian Federation, United Arab Emirate, and Hong Kong China. Correspondingly, exports to non-traditional markets such as India and China have increased rapidly. South Africa has prioritized exports as the engine for economic growth and job creation. The country has two major export destinations namely; the high income countries of Europe and North America, and the low-income markets of Africa, especially Southern African Customs Union (SADC) countries. South Africa’s Real Exchange Rates (RER) fluctuated widely since early 1970’s. This occurred after the collapse of the Bretton Woods system of fixed exchange rates in 1973. South Africa’s RER has been depreciating since then. Consequently, there has been a proliferation of debates on the relationship between the RER and exports performance. The most commonly held belief is that the RER depresses trade thereby increasing riskiness of trading activity. The South African fruit industry has been operating in the background of the depreciating RER. A high degree of RER volatility has posed a serious challenge to policy making environment because the magnitude of its impacts on trade flows is still unknown. The policy making environment becomes stagnant. Policy makers and researchers continue to examine the effects of RER on trade for an indefinite period. The South African fruit producers are unable to anticipate income earnings from trade due to increased risks associated with RER. South Africa’s agricultural sector encompasses the Historically Disadvantaged Individuals (HDI) which the country wants to prioritise and give them opportunities to participate in trade. The risks associated with the RER impair the development of the HDIs. The Thesis seeks to examine South Africa’s trade performance and the competitiveness of South African fruit industry as well as the effects of the RER. Specifically, the Thesis examines South Africa’s global fruit trade performance, explores the export competitiveness of South African fruit industry, and estimates the export demand equation for South African fruit exports to the world. The Thesis used the data obtained from the Department of Agriculture, Forestry and Fisheries (DAFF) for the period of 1080 to 2015 to estimate the export demand equation. The data from the International Trade Centre (ITC) for the period of 2001 to 2015 was used to examine South Africa’s global trade performance and competitiveness. The analytical framework followed incorporates the South Africa’s fruit Trade Performance Index (TPI) and the effects of RER on South African fruit industry. The TPI presents South Africa’s global fruit trade and its competitiveness using Trade Map, while the effects of RER are investigated on local fruit sales and on exports using the regression model. The Trade Map is the dominant trade analysis tool increasingly being used by the researchers and policy makers to make informed decisions on trade issues. The Thesis also made use of the Trade Map tools to examine South Africa’s global fruit trade performance and its competitiveness. The market analysis tools developed by the International Trade Centre (ITC) are: Trade Map, Market Access Map, Investment Map, Trade Competitiveness Map, Standard Map, and the Procurement Map. Trade Map, Trade Competitiveness Map, and the Market Access Map are used. Subsequently, the Thesis applied econometric techniques to examine the effects of RER on South Africa’s fruit exports and on fruit sales on local markets using the regression model. In this regard, the Thesis followed the export demand equation used by Todani and Munyama (2005). De Vita & Abbott (2004), and Tandra-Ragoobur & Emamdy (2011). Todani & Munyama (2005), to estimate the relationship between exchange rate volatility and South African export. Real exports and the exchange rate volatility were the main variables used in the model. The relative prices and the income of South Africa’s trading partner were also included in the model. The results show that South Africa was the 11th largest fruit exporter after Viet Nam and Spain in 2015. During the same year, the U.S. was the largest exporter of fruit with 14percent in the world, followed by Spain and Netherlands with 9percent and 6percent, respectively. The fruit industry ranked 8th largest exporter and the largest in agricultural sectors in 2015. Its exports totaled R 37 133 million in 2015, from R 30 566 million in 2014. South Africa’s total fruit exports accounted for a 33percent share on total agricultural exports and 4percent on South Africa’s total exports in 2015. The coefficients of the regression model were all statistically significant. Most importantly, an inverse relationship between the relative price and South Africa’s real fruit exports was established. Moreover, the RER had a significant negative effect on the South Africa’s fruit export competitiveness. This imposes more pain on the development of the HDIs in South Africa’s agricultural sector. South Africa has desire to move away from the export of raw materials and traditional export commodities and promote the export of value added products, including the agro processing products. Accordingly, this affects the entire value chain of the agricultural sector, since trade cannot be anticipated. On the basis of the regression results shown by the variables included in the model, the objectives of the study were accomplished. South Africa’s fruit exports are said to be more competitive to the European markets as a result of the weaker rand relative to other countries. The overview of South Africa’s fruit trade shows that South African fruit exports are more competitive across the globe. This is probably because the South Africa’s fruit exports for the top ten commodities are ranked almost the first five in the European markets and the first ten for the world. The results are supported by previous documented research, which emphasised that the weaker rand leads to more South African fruit produce being absorbed by the international markets. The evidence from the results shows that the RER stimulates the fruit export competitiveness.
- Full Text:
- Date Issued: 2017
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