Choice of market channels by smallholder vegetable farmers in King Sabata Dalindyebo Municipality in the Eastern Cape province of South Africa
- Authors: Yokwana, Aphelele Lucia
- Date: 2017
- Subjects: Vegetables -- Marketing Farms, Small -- South Africa -- Eastern Cape Vegetable trade -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/11906 , vital:39117
- Description: The study investigates the choice of market channels by smallholder vegetable farmers in King Sabatha Dalindyebo Municipality, in the Eastern Cape Province of South Africa. Vegetables as a group of horticultural crops are important for their contribution as an income support to a large proportion of the rural households. However, enhancing vegetable farmers to reach markets and actively engage in the markets is a key challenge influencing vegetable production in South Africa. The perishable nature of vegetables demands effective marketing channels. The main objective of the study was to investigate factors affecting vegetable farmers’ choice of market channels in King Sabata Dalindyebo Municipality in the Eastern Cape Province. The study adopted a multistage stratified sampling method. Multi-stage sampling was done in which the first stage involved selecting respondents from the different wards in the King Sabata Dalindyebo Municipality. This was done through stratification by separating vegetable smallholder farmers and homesteads within that area (different villages within the area). This was followed by employing quota sampling through the different households and smallholder farmers within those areas in order to determine households and smallholder farmers that are able to provide the needed information concerning the choice of market channels. By stratified random sampling based on village, project membership and smallholder farmers, a sample of 110 heads of households was chosen for the study in eight different wards of KSD. The sampling for this study was based on a large sampling technique of n ≥ 30 as there is no information regarding the population of the total number of homesteads and smallholder farmers that are under each traditional leader (chief) in these study sites. This sample comprises homesteads and smallholder farmers that took part in vegetable production. A structured questionnaire together with field observations and measurements were adopted for obtaining information from household respondents. Descriptive statistics (percentages, means, frequency tables and figures) and a Multinomial logistic regression model have been used to analyze the data. From the Multinomial logistic regression results, farming experience is positively related to choice of farm gate market channel at 1percent level of significance. The age of vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. The level of education of the vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. Moreover, the results also showed that the inputs used are positively related to the choice of farm-gate as well as direct to consumer market channels at 5percent significance level. Similarly, means of transportation used and choice of marketing channel of the vegetable farmers are positively related at 1percent significance level at the direct to consumer choice of market channel. Furthermore, access to extension services indicated a positive relationship to the choice of market channel amongst the smallholder vegetable farmers for the direct to consumer at 5percent level of significance which is insignificant for that of the farm-gate. There is therefore, need for strong extension support in assisting the farmers to diversify their production, provide market information thereby enhancing production and opening up channels for market accessibility. This is seen to enhance rural households’ livelihood outcomes in agricultural production thereby improving the choice of market channels by smallholder vegetable farmers and alleviating poverty and improving food security. More so, the government and research institutes need to organize workshops and extension programs in famer’ training for more efficiency in their vegetable production and marketing.
- Full Text:
- Authors: Yokwana, Aphelele Lucia
- Date: 2017
- Subjects: Vegetables -- Marketing Farms, Small -- South Africa -- Eastern Cape Vegetable trade -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/11906 , vital:39117
- Description: The study investigates the choice of market channels by smallholder vegetable farmers in King Sabatha Dalindyebo Municipality, in the Eastern Cape Province of South Africa. Vegetables as a group of horticultural crops are important for their contribution as an income support to a large proportion of the rural households. However, enhancing vegetable farmers to reach markets and actively engage in the markets is a key challenge influencing vegetable production in South Africa. The perishable nature of vegetables demands effective marketing channels. The main objective of the study was to investigate factors affecting vegetable farmers’ choice of market channels in King Sabata Dalindyebo Municipality in the Eastern Cape Province. The study adopted a multistage stratified sampling method. Multi-stage sampling was done in which the first stage involved selecting respondents from the different wards in the King Sabata Dalindyebo Municipality. This was done through stratification by separating vegetable smallholder farmers and homesteads within that area (different villages within the area). This was followed by employing quota sampling through the different households and smallholder farmers within those areas in order to determine households and smallholder farmers that are able to provide the needed information concerning the choice of market channels. By stratified random sampling based on village, project membership and smallholder farmers, a sample of 110 heads of households was chosen for the study in eight different wards of KSD. The sampling for this study was based on a large sampling technique of n ≥ 30 as there is no information regarding the population of the total number of homesteads and smallholder farmers that are under each traditional leader (chief) in these study sites. This sample comprises homesteads and smallholder farmers that took part in vegetable production. A structured questionnaire together with field observations and measurements were adopted for obtaining information from household respondents. Descriptive statistics (percentages, means, frequency tables and figures) and a Multinomial logistic regression model have been used to analyze the data. From the Multinomial logistic regression results, farming experience is positively related to choice of farm gate market channel at 1percent level of significance. The age of vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. The level of education of the vegetable farmers was positively related to the choice of direct to consumer market channel at 5percent significance level. Moreover, the results also showed that the inputs used are positively related to the choice of farm-gate as well as direct to consumer market channels at 5percent significance level. Similarly, means of transportation used and choice of marketing channel of the vegetable farmers are positively related at 1percent significance level at the direct to consumer choice of market channel. Furthermore, access to extension services indicated a positive relationship to the choice of market channel amongst the smallholder vegetable farmers for the direct to consumer at 5percent level of significance which is insignificant for that of the farm-gate. There is therefore, need for strong extension support in assisting the farmers to diversify their production, provide market information thereby enhancing production and opening up channels for market accessibility. This is seen to enhance rural households’ livelihood outcomes in agricultural production thereby improving the choice of market channels by smallholder vegetable farmers and alleviating poverty and improving food security. More so, the government and research institutes need to organize workshops and extension programs in famer’ training for more efficiency in their vegetable production and marketing.
- Full Text:
Cost and return analysis of smallholder organic crop farms in the Eastern Cape province of South Africa
- Authors: Akharume, Celestine Ohi
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Profit -- South Africa -- Eastern Cape Organic farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/13730 , vital:39703
- Description: Agriculture remains an influential sector in South Africa in terms of its contributions to economic development and poverty reduction, notably in the rural areas. These include providing sufficient and affordable food for the constantly increasing population, providing cheap food for the developing industrial labor force, providing employment and livelihoods and supplying raw materials to the country’s rising domestic industrial sector. Despite phenomenal progress in integrating smallholder farmers into the mainstream economy since democratic reforms in the country, deteriorating soil quality through poor agricultural practices, land erosion, acidification and concerns about production and productivity and compliance with food safety standards are beginning to loom high. Hence, organic farming is identified as one of the sustainable approaches to farming. It is also believed to guarantee substantial net gains and to promote sustainable natural resource management with the possibility of enhancing overall agricultural productivity. Notwithstanding, organic farming is still being perceived negatively in South Africa and there is shortage of empirical studies which focus on cost and return of smallholder organic crop farms. It is in this regard that the study therefore seeks to analyze cost and return of smallholder organic crop farms in the Eastern Cape Province to contribute to knowledge on the relative economic advantages of organic agriculture at the smallholder sector. Specifically, the study profiled the socioeconomic characteristics of smallholder organic crop farmers, determined costs and returns, and estimated profitability and factors that constrain profitability of the smallholder organic crop farms. The research design used in this study was cross-sectional where data were collected at a single point in time. A multi- stage random sampling technique was used to obtain primary data from one hundred and sixty smallholder organic crop farmers (160) with the aid of structured questionnaires. Primary data were collected on demographic and socioeconomic characteristics, variable costs and fixed costs, and returns from the organic crop farms. Data collected were analyzed by Statistical Package for Social Sciences (SPSS) and the descriptive and inferential statistics involved were mean, frequency proportion, gross margin and net income analysis as well as OLS regression analysis. The results of the descriptive analysis showed that the proportions of women involved in organic crop farming were higher than that of men and many of the farmers cultivated on less than 1.0ha. The analysis of the data also showed that smallholder organic crop farms are undoubtedly profitable farm business, with attractive net farm income and lower production costs. The findings further affirmed that factors such as household size, gender, farming experience, number of years in school, farm size, source of labor and access to credit affect profitability and net farm income. Therefore, government is advised to encourage the practice of organic farming by giving short-term loans to smallholder farmers, to enable them invest more in their organic crop farms. There is also need for government to organize workshops and lectures, educating and enlightening individual smallholder organic crop farmers on modern organic farming techniques to enhance profitability of smallholder organic crop farms.
- Full Text:
- Authors: Akharume, Celestine Ohi
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Profit -- South Africa -- Eastern Cape Organic farming -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/13730 , vital:39703
- Description: Agriculture remains an influential sector in South Africa in terms of its contributions to economic development and poverty reduction, notably in the rural areas. These include providing sufficient and affordable food for the constantly increasing population, providing cheap food for the developing industrial labor force, providing employment and livelihoods and supplying raw materials to the country’s rising domestic industrial sector. Despite phenomenal progress in integrating smallholder farmers into the mainstream economy since democratic reforms in the country, deteriorating soil quality through poor agricultural practices, land erosion, acidification and concerns about production and productivity and compliance with food safety standards are beginning to loom high. Hence, organic farming is identified as one of the sustainable approaches to farming. It is also believed to guarantee substantial net gains and to promote sustainable natural resource management with the possibility of enhancing overall agricultural productivity. Notwithstanding, organic farming is still being perceived negatively in South Africa and there is shortage of empirical studies which focus on cost and return of smallholder organic crop farms. It is in this regard that the study therefore seeks to analyze cost and return of smallholder organic crop farms in the Eastern Cape Province to contribute to knowledge on the relative economic advantages of organic agriculture at the smallholder sector. Specifically, the study profiled the socioeconomic characteristics of smallholder organic crop farmers, determined costs and returns, and estimated profitability and factors that constrain profitability of the smallholder organic crop farms. The research design used in this study was cross-sectional where data were collected at a single point in time. A multi- stage random sampling technique was used to obtain primary data from one hundred and sixty smallholder organic crop farmers (160) with the aid of structured questionnaires. Primary data were collected on demographic and socioeconomic characteristics, variable costs and fixed costs, and returns from the organic crop farms. Data collected were analyzed by Statistical Package for Social Sciences (SPSS) and the descriptive and inferential statistics involved were mean, frequency proportion, gross margin and net income analysis as well as OLS regression analysis. The results of the descriptive analysis showed that the proportions of women involved in organic crop farming were higher than that of men and many of the farmers cultivated on less than 1.0ha. The analysis of the data also showed that smallholder organic crop farms are undoubtedly profitable farm business, with attractive net farm income and lower production costs. The findings further affirmed that factors such as household size, gender, farming experience, number of years in school, farm size, source of labor and access to credit affect profitability and net farm income. Therefore, government is advised to encourage the practice of organic farming by giving short-term loans to smallholder farmers, to enable them invest more in their organic crop farms. There is also need for government to organize workshops and lectures, educating and enlightening individual smallholder organic crop farmers on modern organic farming techniques to enhance profitability of smallholder organic crop farms.
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Market participation effect on profitability of Zanyokhwe and Melani irrigation schemes in Eastern Cape province of South Africa
- Authors: Qapeshu, Sipumle
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/15639 , vital:40493
- Description: Profit accumulation is one of the key benefits associated with market access. However, market access tend to be the major challenge to many smallholder farmers and that ends up influencing their profitability. Irrigation schemes became one of the coping mechanisms for such farmers whereby they work collectively with the aim of overcoming the various technical and institutional constraints they confront. This study examined how profitability is influenced by market participation of irrigation schemes by identifying the market structures used by irrigation schemes and describing the challenges encountered by smallholder irrigation scheme members who operate in those markets and assessing the profitability of the identified market. Primary data were collected using a comprehensive questionnaire made up of both open and closed ended questions. Data were collected from two irrigation schemes namely: Melani irrigation scheme (Alice – Raymond Mhlaba Local Municipality) and Zanyokhwe irrigation scheme (Keiskammahoek – Amahlathi Local Municipality). Multi-stage sampling procedure was employed to select 100 respondents. SPSS (version 22) and Microsoft Excel computer programmes were employed to conduct the wide range of descriptive and inferential analyses involved. Frequencies, percentages and means were used for the descriptive results to describe the general characteristics (example: gender, age, marital status and level of education) and socioeconomic features of the respondents. A regression model (Binary logistic model) was done to examine how profitability is influenced by market participation. Furthermore, Gross Margin Analysis was conducted to find out the profitability of the market structures used by these irrigation schemes. The descriptive results showed that there is a relationship between profitability and market participation of smallholder irrigation schemes in Eastern Cape Province of South Africa, by participate on markets this can improve the livelihood of farmers. The binary logistic regression model results revealed that there are five significant variables at different statistical levels. Age (10percent), years of schooling (1percent), distance to markets (1percent), farming experience (5percent) and the household income at (10percent) had a statistically significant influence on the market participation decision. These findings suggest that an improvement in each of the significant variables can significantly influence farmer market participation decisions. Furthermore, based on the results of the study, policy recommendations are suggested, including improving dissemination of market information to farmers, encouraging farmers to seek markets before production and encouraging farmers to add value to their produce. The Gross Margin Analysis that was performed showed that in Melani irrigation scheme farmers had positive gross margins and farmers in Zanyokhwe irrigation scheme had a negative gross margin. Therefore it can be concluded that the market that is available to Zanyokhwe irrigation scheme does not give good returns, suggesting a need for changing the market so as to ensure that farmers derive meaningful access. The study recommends the improvements to market participation through credit to low income farmers, formal training, market information, better price and tax policies for smallholder irrigation farming to ensure sustainable improvements in profitability of smallholder irrigation schemes.
- Full Text:
- Authors: Qapeshu, Sipumle
- Date: 2017
- Subjects: Farms, Small -- South Africa -- Eastern Cape Agriculture -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MAgric
- Identifier: http://hdl.handle.net/10353/15639 , vital:40493
- Description: Profit accumulation is one of the key benefits associated with market access. However, market access tend to be the major challenge to many smallholder farmers and that ends up influencing their profitability. Irrigation schemes became one of the coping mechanisms for such farmers whereby they work collectively with the aim of overcoming the various technical and institutional constraints they confront. This study examined how profitability is influenced by market participation of irrigation schemes by identifying the market structures used by irrigation schemes and describing the challenges encountered by smallholder irrigation scheme members who operate in those markets and assessing the profitability of the identified market. Primary data were collected using a comprehensive questionnaire made up of both open and closed ended questions. Data were collected from two irrigation schemes namely: Melani irrigation scheme (Alice – Raymond Mhlaba Local Municipality) and Zanyokhwe irrigation scheme (Keiskammahoek – Amahlathi Local Municipality). Multi-stage sampling procedure was employed to select 100 respondents. SPSS (version 22) and Microsoft Excel computer programmes were employed to conduct the wide range of descriptive and inferential analyses involved. Frequencies, percentages and means were used for the descriptive results to describe the general characteristics (example: gender, age, marital status and level of education) and socioeconomic features of the respondents. A regression model (Binary logistic model) was done to examine how profitability is influenced by market participation. Furthermore, Gross Margin Analysis was conducted to find out the profitability of the market structures used by these irrigation schemes. The descriptive results showed that there is a relationship between profitability and market participation of smallholder irrigation schemes in Eastern Cape Province of South Africa, by participate on markets this can improve the livelihood of farmers. The binary logistic regression model results revealed that there are five significant variables at different statistical levels. Age (10percent), years of schooling (1percent), distance to markets (1percent), farming experience (5percent) and the household income at (10percent) had a statistically significant influence on the market participation decision. These findings suggest that an improvement in each of the significant variables can significantly influence farmer market participation decisions. Furthermore, based on the results of the study, policy recommendations are suggested, including improving dissemination of market information to farmers, encouraging farmers to seek markets before production and encouraging farmers to add value to their produce. The Gross Margin Analysis that was performed showed that in Melani irrigation scheme farmers had positive gross margins and farmers in Zanyokhwe irrigation scheme had a negative gross margin. Therefore it can be concluded that the market that is available to Zanyokhwe irrigation scheme does not give good returns, suggesting a need for changing the market so as to ensure that farmers derive meaningful access. The study recommends the improvements to market participation through credit to low income farmers, formal training, market information, better price and tax policies for smallholder irrigation farming to ensure sustainable improvements in profitability of smallholder irrigation schemes.
- Full Text:
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