- Title
- Cost and return analysis of smallholder organic crop farms in the Eastern Cape province of South Africa
- Creator
- Akharume, Celestine Ohi
- Subject
- Farms, Small -- South Africa -- Eastern Cape Profit -- South Africa -- Eastern Cape Organic farming -- South Africa -- Eastern Cape
- Date
- 2017
- Type
- Thesis
- Type
- Masters
- Type
- MAgric
- Identifier
- http://hdl.handle.net/10353/13730
- Identifier
- 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.
- Format
- 160 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Science and Agriculture
- Language
- English
- Rights
- University of Fort Hare
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UFH Department of Agricultural Economics and Extension
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | M Agric (Agric Economics) AKHARUME, CO.pdf | 2 MB | Adobe Acrobat PDF | View Details |