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.
- Full Text:
- Date Issued: 2017
- 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.
- Full Text:
- Date Issued: 2017
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.
- Full Text:
- Date Issued: 2017
- 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.
- Full Text:
- Date Issued: 2017
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.
- Full Text:
- Date Issued: 2017
- 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.
- Full Text:
- Date Issued: 2017
Modelling payment systems for environmental services in the Mt Elgon ecosystem of Kenya
- Authors: Kisaka, Lily
- Date: 2014
- Subjects: Ecological disturbances -- Kenya , Freshwater ecology -- Kenya , Water quality biological assessment -- Kenya , Land degradation -- Kenya , Ecosystem health -- Kenya
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11206 , http://hdl.handle.net/10353/d1013123 , Ecological disturbances -- Kenya , Freshwater ecology -- Kenya , Water quality biological assessment -- Kenya , Land degradation -- Kenya , Ecosystem health -- Kenya
- Description: Unsustainable patterns of consumption by humankind have increased the rate of change in the natural ecosystems and consequently the levels of stress experienced within the environment. Access to sufficient good quality water is essential and a requirement to meet a number of the Millennium Development Goals (MDGs). However, poor land management and untenable agricultural practices have become the main drivers of the declining watershed services. Upstream farmers often have little or no incentives to take these impacts into account in their decision-making process. Therefore, without investment in ensuring proper land management, the trend in watersheds degradation will continue. Payment for Environmental Services (PES) has emerged as an incentive–based tool that is expected to motivate farmers to improve their agricultural practices. PES is set up to facilitate the process whereby the beneficiaries of environmental services pay compensation to providers of environmental services for conserving the ecosystem. This tool has received increasing attention as a means of creating incentive measures for managing the ecosystem, addressing livelihood issues for the rural poor, and providing sustainable financing for protected areas. The Government of Kenya, as part of its efforts to improve water resource management, is considering use of economic incentive. However, there is insufficient information to guide policy making in that direction. Little is known about the farmers’ preferences for management schemes that will affect land use patterns, their willingness to accept compensation and the willingness of potential buyers to pay for the services. This study evaluates the willingness to accept and the willingness to pay for environmental services with a view to assessing the viability of a PES scheme for the Kuywa Watershed in particular, as well as the Mt. Elgon Ecosystem and other areas with similar conditions. The objectives of the study are threefold (i) to examine respondents preferences for management options for the provision of environmental services in the watershed of River Kuywa of Mt. Elgon Ecosystem; (ii) to evaluate households’ willingness to pay (WTP) and willingness to accept (WTA) payment for improved environmental services from the River Kuywa watershed; and (iii) to propose viable PES approaches for the management of the natural resource of the Kuywa watershed and the Mt. Elgon ecosystem in general. Using six land management attributes relevant to the local situation, the study applied the conjoint method to evaluate farmers’ preferences for management options for the provision of environmental service and assess farmers’ willingness to pay and willingness to accept payment for environmental services. To enable assessment of viability, an analysis was done of the institutional and legal framework within which the PES scheme would operate. Data were collected using literature review and document analysis, questionnaires, focus group discussions and key informant interviews. Results indicate that poor water quality was the most acute problem, followed by deforestation. Results from the conjoint models show that the length of commitment period and land size that is 40% or more of the total land holding influence the farmers’ rating of the management scenarios. The study found that a management contract that requires use of 20% of land holding for a period of 5 years, combined with a cash incentive, harvesting partially permitted, administered by a local NGO and requiring contribution of free labour for two days had the highest likelihood of being selected. The conjoint valuation exercise also came up with a WTA by farmers upstream of KSh. 7,080/= per year. The corresponding value downstream was KSh. 43/= per month over and above their regular water bill. In terms of the institutional and regulatory framework, Kenya has a wide range of policies, laws and regulation on water and other natural resources which provide an enabling environment for PES. With the decentralized institutional setup implemented in both the water sector and the agricultural sector, the institutional setting also provides an enabling environment for PES. With a positive WTA and WTP coupled with an enabling legal and institutional environment, the study concludes that PES is a viable environmental management tool for the Kuywa water shed and similar watersheds.
- Full Text:
- Date Issued: 2014
- Authors: Kisaka, Lily
- Date: 2014
- Subjects: Ecological disturbances -- Kenya , Freshwater ecology -- Kenya , Water quality biological assessment -- Kenya , Land degradation -- Kenya , Ecosystem health -- Kenya
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11206 , http://hdl.handle.net/10353/d1013123 , Ecological disturbances -- Kenya , Freshwater ecology -- Kenya , Water quality biological assessment -- Kenya , Land degradation -- Kenya , Ecosystem health -- Kenya
- Description: Unsustainable patterns of consumption by humankind have increased the rate of change in the natural ecosystems and consequently the levels of stress experienced within the environment. Access to sufficient good quality water is essential and a requirement to meet a number of the Millennium Development Goals (MDGs). However, poor land management and untenable agricultural practices have become the main drivers of the declining watershed services. Upstream farmers often have little or no incentives to take these impacts into account in their decision-making process. Therefore, without investment in ensuring proper land management, the trend in watersheds degradation will continue. Payment for Environmental Services (PES) has emerged as an incentive–based tool that is expected to motivate farmers to improve their agricultural practices. PES is set up to facilitate the process whereby the beneficiaries of environmental services pay compensation to providers of environmental services for conserving the ecosystem. This tool has received increasing attention as a means of creating incentive measures for managing the ecosystem, addressing livelihood issues for the rural poor, and providing sustainable financing for protected areas. The Government of Kenya, as part of its efforts to improve water resource management, is considering use of economic incentive. However, there is insufficient information to guide policy making in that direction. Little is known about the farmers’ preferences for management schemes that will affect land use patterns, their willingness to accept compensation and the willingness of potential buyers to pay for the services. This study evaluates the willingness to accept and the willingness to pay for environmental services with a view to assessing the viability of a PES scheme for the Kuywa Watershed in particular, as well as the Mt. Elgon Ecosystem and other areas with similar conditions. The objectives of the study are threefold (i) to examine respondents preferences for management options for the provision of environmental services in the watershed of River Kuywa of Mt. Elgon Ecosystem; (ii) to evaluate households’ willingness to pay (WTP) and willingness to accept (WTA) payment for improved environmental services from the River Kuywa watershed; and (iii) to propose viable PES approaches for the management of the natural resource of the Kuywa watershed and the Mt. Elgon ecosystem in general. Using six land management attributes relevant to the local situation, the study applied the conjoint method to evaluate farmers’ preferences for management options for the provision of environmental service and assess farmers’ willingness to pay and willingness to accept payment for environmental services. To enable assessment of viability, an analysis was done of the institutional and legal framework within which the PES scheme would operate. Data were collected using literature review and document analysis, questionnaires, focus group discussions and key informant interviews. Results indicate that poor water quality was the most acute problem, followed by deforestation. Results from the conjoint models show that the length of commitment period and land size that is 40% or more of the total land holding influence the farmers’ rating of the management scenarios. The study found that a management contract that requires use of 20% of land holding for a period of 5 years, combined with a cash incentive, harvesting partially permitted, administered by a local NGO and requiring contribution of free labour for two days had the highest likelihood of being selected. The conjoint valuation exercise also came up with a WTA by farmers upstream of KSh. 7,080/= per year. The corresponding value downstream was KSh. 43/= per month over and above their regular water bill. In terms of the institutional and regulatory framework, Kenya has a wide range of policies, laws and regulation on water and other natural resources which provide an enabling environment for PES. With the decentralized institutional setup implemented in both the water sector and the agricultural sector, the institutional setting also provides an enabling environment for PES. With a positive WTA and WTP coupled with an enabling legal and institutional environment, the study concludes that PES is a viable environmental management tool for the Kuywa water shed and similar watersheds.
- Full Text:
- Date Issued: 2014
Impact of human dimensions on smallholder farming in the Eastern Cape Province of South Africa
- Authors: Kibirige, Douglas
- Date: 2013
- Subjects: Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11201 , http://hdl.handle.net/10353/d1007532 , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Description: Considering the backward and forward linkages, the agro-industrial sector contributes about 12 percent of South Africa‘s GDP, and employs approximately 8.5 million people. In the Eastern Cape Province, the sector contributes about 1.9 percent of the Provincial GDP, and over 3 million people derive their livelihoods from subsistence smallholder farming. Despite its importance, agricultural productivity has stagnated for several years across the Eastern Cape rural communities. There have been several attempts by the government to improve the agricultural productivity on smallholder farms since the end of apartheid, especially through the establishment of small-scale irrigation schemes, subsidization of farm inputs, and provision of credit facilities and enacting a number of land reform policies. In spite of the government support, most rural communities like Qamata and Tyefu are still faced with high levels of poverty affecting 76 percent and 91 percent of the population, respectively. This research evaluated the current smallholders‘ production efficiency, and the link between smallholder farmers‘ human dimensions (entrepreneurial spirit and positive psychological capital, goals and social capital, and other efficiency related variables) with production efficiency and household commercialisation index/level. The study used participatory approaches for site selection, sample selection and data collection. The analysis was based on both information from informal interviews and formal primary data collection. The Data Envelopment Analysis and Stochastic Production Frontier techniques were used to determine the relative efficiencies of individual farmers and to identify the major factors that influence the efficiency of production. Overall, 158 farmers were interviewed both at Qamata and Tyefu irrigation schemes. Descriptive statistics of this study indicated that most of the farmers were men with an average age of 61 years, and mean household size of 4 persons with the household head having at least obtained some primary school education. Farming is the major source of livelihood for smallholders with an average income of R4527.49 per crop season. Smallholders use improved seeds, fertilizers and tractor for ploughing with less use of pesticides and herbicides. Although smallholder irrigators generate more gross margins from maize and cabbage enterprises, generally both categories of farmers exhibited a low average household commercialization index for maize and cabbage at 0.41 and 0.22, respectively. Both Data Envelopment Analysis and Stochastic Production Frontier results indicate that farmers are about 98 percent technically efficient in maize and cabbage enterprises, respectively. However, farmers were allocatively inefficient as they were under-utilizing seed and pesticides while over-utilizing inorganic fertilizers. Factors that are positively associated with technical efficiency in maize production included household size, farming experience, off-farm income, use of agro-chemical; gross margins and commercialisation level of maize output. Determinants of technical efficiency in cabbage enterprise included farming experience, amount of land owned, use of agro-chemicals, group membership and gross margins accrued to cabbage sales. Farmers‘ human dimensions that could be more positively and significantly associated with production, efficiency and household commercialisation level included risk taking (hope), innovativeness (confidence) and optimism for entrepreneurial/positive psychological capital. Farmers‘ goals included self-esteem and independence, and only external social capital which were identified to be more positively and significantly associated with farmers‘ production efficiency and commercialization level. The transition from homestead subsistence to commercial oriented small-scale irrigation farming is inevitable since smallholder irrigators earn more incomes from maize and cabbage and are relatively food secure. However, the key policy options that must be considered to address inefficiencies and improved commercialization level to aid the transition include: agricultural policies geared toward attracting youth in farming, improved quality of extension services, speeding up the land reform process, and formation of cooperatives and participatory policy formulation that takes full cognizance of the farmers‘ human dimensions. Since farmers‘ human dimensions as defined in the literature and this study are not things that are amenable to direct policy intervention, they can only be modified indirectly through policy actions that affect their determinants. This means that a number of the demographic and socio-economic characteristics such as age, sex and education level of household head, farming experience, size of land owned, crop incomes, source of water for irrigation and location of the irrigation scheme that govern the way people perceive reality and respond to them must be the focus of concerted policy actions over the medium to long term.
- Full Text:
- Date Issued: 2013
- Authors: Kibirige, Douglas
- Date: 2013
- Subjects: Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11201 , http://hdl.handle.net/10353/d1007532 , Farms, Small -- South Africa -- Eastern Cape , Agriculture -- Economic aspects -- South Africa , Rural development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , South Africa -- Social conditions , South Africa -- Economic conditions , DEA approach , Stochastic production frontier , Production efficiency , Human dimensions , Irrigation
- Description: Considering the backward and forward linkages, the agro-industrial sector contributes about 12 percent of South Africa‘s GDP, and employs approximately 8.5 million people. In the Eastern Cape Province, the sector contributes about 1.9 percent of the Provincial GDP, and over 3 million people derive their livelihoods from subsistence smallholder farming. Despite its importance, agricultural productivity has stagnated for several years across the Eastern Cape rural communities. There have been several attempts by the government to improve the agricultural productivity on smallholder farms since the end of apartheid, especially through the establishment of small-scale irrigation schemes, subsidization of farm inputs, and provision of credit facilities and enacting a number of land reform policies. In spite of the government support, most rural communities like Qamata and Tyefu are still faced with high levels of poverty affecting 76 percent and 91 percent of the population, respectively. This research evaluated the current smallholders‘ production efficiency, and the link between smallholder farmers‘ human dimensions (entrepreneurial spirit and positive psychological capital, goals and social capital, and other efficiency related variables) with production efficiency and household commercialisation index/level. The study used participatory approaches for site selection, sample selection and data collection. The analysis was based on both information from informal interviews and formal primary data collection. The Data Envelopment Analysis and Stochastic Production Frontier techniques were used to determine the relative efficiencies of individual farmers and to identify the major factors that influence the efficiency of production. Overall, 158 farmers were interviewed both at Qamata and Tyefu irrigation schemes. Descriptive statistics of this study indicated that most of the farmers were men with an average age of 61 years, and mean household size of 4 persons with the household head having at least obtained some primary school education. Farming is the major source of livelihood for smallholders with an average income of R4527.49 per crop season. Smallholders use improved seeds, fertilizers and tractor for ploughing with less use of pesticides and herbicides. Although smallholder irrigators generate more gross margins from maize and cabbage enterprises, generally both categories of farmers exhibited a low average household commercialization index for maize and cabbage at 0.41 and 0.22, respectively. Both Data Envelopment Analysis and Stochastic Production Frontier results indicate that farmers are about 98 percent technically efficient in maize and cabbage enterprises, respectively. However, farmers were allocatively inefficient as they were under-utilizing seed and pesticides while over-utilizing inorganic fertilizers. Factors that are positively associated with technical efficiency in maize production included household size, farming experience, off-farm income, use of agro-chemical; gross margins and commercialisation level of maize output. Determinants of technical efficiency in cabbage enterprise included farming experience, amount of land owned, use of agro-chemicals, group membership and gross margins accrued to cabbage sales. Farmers‘ human dimensions that could be more positively and significantly associated with production, efficiency and household commercialisation level included risk taking (hope), innovativeness (confidence) and optimism for entrepreneurial/positive psychological capital. Farmers‘ goals included self-esteem and independence, and only external social capital which were identified to be more positively and significantly associated with farmers‘ production efficiency and commercialization level. The transition from homestead subsistence to commercial oriented small-scale irrigation farming is inevitable since smallholder irrigators earn more incomes from maize and cabbage and are relatively food secure. However, the key policy options that must be considered to address inefficiencies and improved commercialization level to aid the transition include: agricultural policies geared toward attracting youth in farming, improved quality of extension services, speeding up the land reform process, and formation of cooperatives and participatory policy formulation that takes full cognizance of the farmers‘ human dimensions. Since farmers‘ human dimensions as defined in the literature and this study are not things that are amenable to direct policy intervention, they can only be modified indirectly through policy actions that affect their determinants. This means that a number of the demographic and socio-economic characteristics such as age, sex and education level of household head, farming experience, size of land owned, crop incomes, source of water for irrigation and location of the irrigation scheme that govern the way people perceive reality and respond to them must be the focus of concerted policy actions over the medium to long term.
- Full Text:
- Date Issued: 2013
Agricultural public spending, growth and poverty linkage hypotheses in the Eastern Cape Province of South Africa
- Authors: Ndhleve, Simbarashe
- Date: 2012
- Subjects: Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11157 , http://hdl.handle.net/10353/493 , Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Description: The adoption of the Millennium Development Goal 1 (MDG1) of reducing the rate of poverty to half of the 1990-level by 2015, the advent of democracy in South Africa, among other things, have raised concerns over the potential role of the agricultural sector. There is a belief that the sector has the capacity to successfully reduce poverty among the rural masses and contribute to addressing the problem of inequality in South Africa. In line with that thinking, South Africa‘s agricultural sector has attracted considerable fiscal policy interest. For instance, South Africa‘s statistics show that public investments in agricultural development programmes have been growing. In spite of this, rural poverty is still a major concern on an overall basis. However, this might not be the case in the Eastern Cape Province and the situation might be different for each district municipality. This study assesses the linkages between public agricultural investment, agricultural growth and poverty reduction in the Eastern Cape Province. The study also addresses the question whether Eastern Cape Province is on course to meet several regional development targets. The study also aims to provide an estimate of the amount of agricultural investment required to attain the agricultural productivity growth rate which is sufficient to meet MDG1. The study reviewed the various theories of public spending, linkages between public investment and agricultural growth and how these components affect the incidence of poverty. The conventional wisdom that public expenditure in agriculture positively affects economic growth and this growth consequently reduces poverty was noted. The reviews also revealed that in many developing countries, the current level of public agricultural investment needs to be increased significantly for countries to meet the MDG1. This study employed the decomposition technique and growth elasticity of poverty concept to estimate the response of poverty to its key determinants. The size of public spending, prioritization of public spending and the intensity in the use of public funds emerged as important in increasing agricultural production. The relationship between government investment in agriculture and agricultural GDP shows iv that public funds were largely behind the province‘s success in increasing agricultural production throughout the period from 1990s to 2010. Agricultural spending went to sustainable resource management, administrative functions and then farmer support programme. Exceptional growth in the size of spending was recorded in respect to agricultural economic function, structured agricultural training, sustainable resource management and veterinary services. Overall output from the agricultural sector fluctuated, and the sector contributed less than 5 per cent to the total provincial GDP. Correlations between growth in agricultural sector and changes in the incidence of poverty in Eastern Cape show that during the period 1995 to 2000, increases in the agricultural GDP per capita may have failed to benefit the poor as poverty increased in all the reported cases.–However, for the period between 2005 and 2010, the situation was different and it was observed that increases in agricultural GDP per capita and were associated with reduction in the incidence of poverty. Growth elasticity of poverty (GEP) estimates reveal that agricultural GDP per capita was more important in reducing poverty in 5 out of the 7 district municipalities. Non-agricultural GDP per capita was only important in two district municipalities. It emerged that most of the district municipalities are not in a position to meet any of the regional set goals. This situation is largely attributable to the province‘s failure to boost agricultural production which is an outcome of low and inefficient public expenditure management, inconsistent and misaligned policies and failure to fully embrace the concept of pro-poor growth. Varied provisional estimates for the required agricultural growth rate and the increase in public spending on agriculture required in order to reach MDG1 were calculated for each district municipalities. All the district municipalities of Eastern Cape will need to increase public investment in agriculture for them to achieve MDG1.
- Full Text:
- Date Issued: 2012
- Authors: Ndhleve, Simbarashe
- Date: 2012
- Subjects: Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11157 , http://hdl.handle.net/10353/493 , Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Description: The adoption of the Millennium Development Goal 1 (MDG1) of reducing the rate of poverty to half of the 1990-level by 2015, the advent of democracy in South Africa, among other things, have raised concerns over the potential role of the agricultural sector. There is a belief that the sector has the capacity to successfully reduce poverty among the rural masses and contribute to addressing the problem of inequality in South Africa. In line with that thinking, South Africa‘s agricultural sector has attracted considerable fiscal policy interest. For instance, South Africa‘s statistics show that public investments in agricultural development programmes have been growing. In spite of this, rural poverty is still a major concern on an overall basis. However, this might not be the case in the Eastern Cape Province and the situation might be different for each district municipality. This study assesses the linkages between public agricultural investment, agricultural growth and poverty reduction in the Eastern Cape Province. The study also addresses the question whether Eastern Cape Province is on course to meet several regional development targets. The study also aims to provide an estimate of the amount of agricultural investment required to attain the agricultural productivity growth rate which is sufficient to meet MDG1. The study reviewed the various theories of public spending, linkages between public investment and agricultural growth and how these components affect the incidence of poverty. The conventional wisdom that public expenditure in agriculture positively affects economic growth and this growth consequently reduces poverty was noted. The reviews also revealed that in many developing countries, the current level of public agricultural investment needs to be increased significantly for countries to meet the MDG1. This study employed the decomposition technique and growth elasticity of poverty concept to estimate the response of poverty to its key determinants. The size of public spending, prioritization of public spending and the intensity in the use of public funds emerged as important in increasing agricultural production. The relationship between government investment in agriculture and agricultural GDP shows iv that public funds were largely behind the province‘s success in increasing agricultural production throughout the period from 1990s to 2010. Agricultural spending went to sustainable resource management, administrative functions and then farmer support programme. Exceptional growth in the size of spending was recorded in respect to agricultural economic function, structured agricultural training, sustainable resource management and veterinary services. Overall output from the agricultural sector fluctuated, and the sector contributed less than 5 per cent to the total provincial GDP. Correlations between growth in agricultural sector and changes in the incidence of poverty in Eastern Cape show that during the period 1995 to 2000, increases in the agricultural GDP per capita may have failed to benefit the poor as poverty increased in all the reported cases.–However, for the period between 2005 and 2010, the situation was different and it was observed that increases in agricultural GDP per capita and were associated with reduction in the incidence of poverty. Growth elasticity of poverty (GEP) estimates reveal that agricultural GDP per capita was more important in reducing poverty in 5 out of the 7 district municipalities. Non-agricultural GDP per capita was only important in two district municipalities. It emerged that most of the district municipalities are not in a position to meet any of the regional set goals. This situation is largely attributable to the province‘s failure to boost agricultural production which is an outcome of low and inefficient public expenditure management, inconsistent and misaligned policies and failure to fully embrace the concept of pro-poor growth. Varied provisional estimates for the required agricultural growth rate and the increase in public spending on agriculture required in order to reach MDG1 were calculated for each district municipalities. All the district municipalities of Eastern Cape will need to increase public investment in agriculture for them to achieve MDG1.
- Full Text:
- Date Issued: 2012
Risk preferences and consumption decisions in organic production: the case of Kwazulu-Natal and Eastern Cape provinces of South Africa
- Authors: Kisaka-Lwayo, Maggie
- Date: 2012
- Subjects: Food security -- South Africa , Sustainable development -- South Africa , Organic farming -- South Africa , Natural foods industry -- South Africa , Risk management -- South Africa , Consumers -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11188 , http://hdl.handle.net/10353/492 , Food security -- South Africa , Sustainable development -- South Africa , Organic farming -- South Africa , Natural foods industry -- South Africa , Risk management -- South Africa , Consumers -- South Africa
- Description: Despite phenomenal success of the commercial agricultural sector in South Africa and significant progress in integrating smallholders since democratic reforms, food security concerns remain. Recent global increases in food prices have further exacerbated vulnerabilities and made it imperative to examine alternative food production questions in the country. Organic agriculture is identified as one of the sustainable approaches to farming and offers insights towards a paradigm shift in food and nutritional security. Notwithstanding, consumer awareness, knowledge and consumption of organic foods are significantly lower in developing than developed countries. Risks associated with adoption of organic practices need to be explored to address the supply and demand constraints. Similarly, while consumer awareness of organic foods is the first step in developing demand for organic products, it does not necessarily translate to consumption. Therefore it is important to investigate these issues. The objectives of this study were to: (i) describe the demographic and socio-economic characteristics of organic farmers and consumers; (ii) establish the determinants of farmers‘ decision to participate in organic farming distinguishing between the fully-certified organic, partially-certified organic and non-organic farmers; (iii) elicit farmers risk preferences and empirically analyse farmers sources of risk and risk management strategies; (iv) explore consumer awareness, perceptions and attitudes regarding organic products; and (v) identify the factors that influence consumer‘s preference and consumption of organic products. A total of 400 respondents were surveyed, consisting of 200 smallholder farmers in KwaZulu-Natal and 200 consumers in the Eastern Cape. The KwaZulu-Natal study was conducted earlier and identified the following as major sources of risk, lack of consumer awareness of organic products and lack of information among producers about consumer preferences for organic products. This informed the need to undertake a consumer awareness and preference study, in order to inform producers. The Eastern Cape is a bordering province to KwaZulu-Natal with similar socio economic conditions and a major consumer of produce from KwaZulu-Natal. It was also expected that in the intervening period there could have been awareness about the product. An vii indication of its appeal would not be in the consumption of the product by the people who grow it, but by consumers who reside in bordering regions. Producer and household questionnaires were used to record household activities, socio-economic and institutional data as well as household demographics through personal interviews. The Arrow Pratt Absolute Risk Aversion (APARA) coefficient was used to measure the farmer‘s degree of risk aversion and the experimental gambling approach to establish the risk classification. Consumers were also asked about their awareness and knowledge about organics, attitudes and perceptions towards organics, preference and consumption patterns. The ordered probit results indicate that older farmers, who are less risk averse and reside in the sub-ward Ogagwini, Ezigani, and Hwayi were more likely to be certified organic farmers. Similarly, the propensity to adopt organic farming is positively correlated to household size, livestock ownership, asset base and tenure security. The risk analysis indicates that at higher pay-offs most farmers are intermediate to moderately risk-averse, with little variation according to personal characteristics, and that non-organic farmers tend to be more risk averse than fully-certified and partially-certified farmers. In general, price, production and financial risks were perceived as the most important sources of risk. Using Principal Component Analysis (PCA), seven principal components (PCs) explaining 66.13% of the variation were extracted. 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 farmers are crop diversification, precautionary savings and participating in social networks. There was general awareness of what constituted organic foods with many consumers associating organic foods with health and nutrition, chemical free and produced using indigenous methods of production. However, there was low awareness of organic products among consumers with little or no knowledge of organic certification and standards. According to the logit model the major factors influencing consumer awareness of organic products are: gender, education, employment status, and location of the respondents, person/household member responsible for shopping and the price perception of the decision maker. The discriminant analysis showed that the consumption of organic products is significantly affected by age of the consumer, viii location, person/household member responsible for shopping, consumer awareness of organics, price perception and label trust. The findings from this study provides 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 organic practices, increase smallholder farmers capacity to manage risk and drive growth in the organic food market.
- Full Text:
- Date Issued: 2012
- Authors: Kisaka-Lwayo, Maggie
- Date: 2012
- Subjects: Food security -- South Africa , Sustainable development -- South Africa , Organic farming -- South Africa , Natural foods industry -- South Africa , Risk management -- South Africa , Consumers -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11188 , http://hdl.handle.net/10353/492 , Food security -- South Africa , Sustainable development -- South Africa , Organic farming -- South Africa , Natural foods industry -- South Africa , Risk management -- South Africa , Consumers -- South Africa
- Description: Despite phenomenal success of the commercial agricultural sector in South Africa and significant progress in integrating smallholders since democratic reforms, food security concerns remain. Recent global increases in food prices have further exacerbated vulnerabilities and made it imperative to examine alternative food production questions in the country. Organic agriculture is identified as one of the sustainable approaches to farming and offers insights towards a paradigm shift in food and nutritional security. Notwithstanding, consumer awareness, knowledge and consumption of organic foods are significantly lower in developing than developed countries. Risks associated with adoption of organic practices need to be explored to address the supply and demand constraints. Similarly, while consumer awareness of organic foods is the first step in developing demand for organic products, it does not necessarily translate to consumption. Therefore it is important to investigate these issues. The objectives of this study were to: (i) describe the demographic and socio-economic characteristics of organic farmers and consumers; (ii) establish the determinants of farmers‘ decision to participate in organic farming distinguishing between the fully-certified organic, partially-certified organic and non-organic farmers; (iii) elicit farmers risk preferences and empirically analyse farmers sources of risk and risk management strategies; (iv) explore consumer awareness, perceptions and attitudes regarding organic products; and (v) identify the factors that influence consumer‘s preference and consumption of organic products. A total of 400 respondents were surveyed, consisting of 200 smallholder farmers in KwaZulu-Natal and 200 consumers in the Eastern Cape. The KwaZulu-Natal study was conducted earlier and identified the following as major sources of risk, lack of consumer awareness of organic products and lack of information among producers about consumer preferences for organic products. This informed the need to undertake a consumer awareness and preference study, in order to inform producers. The Eastern Cape is a bordering province to KwaZulu-Natal with similar socio economic conditions and a major consumer of produce from KwaZulu-Natal. It was also expected that in the intervening period there could have been awareness about the product. An vii indication of its appeal would not be in the consumption of the product by the people who grow it, but by consumers who reside in bordering regions. Producer and household questionnaires were used to record household activities, socio-economic and institutional data as well as household demographics through personal interviews. The Arrow Pratt Absolute Risk Aversion (APARA) coefficient was used to measure the farmer‘s degree of risk aversion and the experimental gambling approach to establish the risk classification. Consumers were also asked about their awareness and knowledge about organics, attitudes and perceptions towards organics, preference and consumption patterns. The ordered probit results indicate that older farmers, who are less risk averse and reside in the sub-ward Ogagwini, Ezigani, and Hwayi were more likely to be certified organic farmers. Similarly, the propensity to adopt organic farming is positively correlated to household size, livestock ownership, asset base and tenure security. The risk analysis indicates that at higher pay-offs most farmers are intermediate to moderately risk-averse, with little variation according to personal characteristics, and that non-organic farmers tend to be more risk averse than fully-certified and partially-certified farmers. In general, price, production and financial risks were perceived as the most important sources of risk. Using Principal Component Analysis (PCA), seven principal components (PCs) explaining 66.13% of the variation were extracted. 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 farmers are crop diversification, precautionary savings and participating in social networks. There was general awareness of what constituted organic foods with many consumers associating organic foods with health and nutrition, chemical free and produced using indigenous methods of production. However, there was low awareness of organic products among consumers with little or no knowledge of organic certification and standards. According to the logit model the major factors influencing consumer awareness of organic products are: gender, education, employment status, and location of the respondents, person/household member responsible for shopping and the price perception of the decision maker. The discriminant analysis showed that the consumption of organic products is significantly affected by age of the consumer, viii location, person/household member responsible for shopping, consumer awareness of organics, price perception and label trust. The findings from this study provides 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 organic practices, increase smallholder farmers capacity to manage risk and drive growth in the organic food market.
- Full Text:
- Date Issued: 2012
The competitiveness of the South African citrus industry in the face of the changing global health and environmental standards
- Authors: Ndou, Portia
- Date: 2012
- Subjects: Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11162 , http://hdl.handle.net/10353/477 , Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
- Full Text:
- Date Issued: 2012
- Authors: Ndou, Portia
- Date: 2012
- Subjects: Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11162 , http://hdl.handle.net/10353/477 , Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
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- Date Issued: 2012
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