The impact of the new co-operative act on employment and poverty reduction: a case study of sorghum producers in the Eastern Cape province
- Authors: Manciya, Sixolise
- Date: 2012
- Subjects: Sorghum industry -- South Africa -- Eastern Cape , Poor -- Employment -- South Africa -- Eastern Cape , Poverty -- South Africa -- Eastern Cape , Agriculture, Cooperative -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Farmers -- South Africa -- Eastern Cape -- Economic conditions , Job creation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11180 , http://hdl.handle.net/10353/d1001026 , Sorghum industry -- South Africa -- Eastern Cape , Poor -- Employment -- South Africa -- Eastern Cape , Poverty -- South Africa -- Eastern Cape , Agriculture, Cooperative -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Farmers -- South Africa -- Eastern Cape -- Economic conditions , Job creation -- South Africa -- Eastern Cape
- Description: In general, traditional co-operatives suffer from free-rider, horizon, portfolio, control and influence problems that starve them of both equity and debt capital. Evidently, the factors which constrain agricultural development also inhibit co-operative development in the former homelands. These factors include socio-economic as well as political factors operating in the environment of the cooperatives. In addition to these external factors, co-operatives have several internal problems such as inefficient management and lack of understanding of the co-operative concept and principles. The New Cooperative Act No. 14 of 2005 was an attempt at addressing these fundamental problems. The purpose of this study was to analyze the extent towhich cooperatives organized on the basis of this new Act have performed and to ascertainwhether or not they have met the expectations of the policy makers. In order to address these issues a structured questionnaire was used to interview 100 farmers. Farmers were divided into two groups, one group consisting of fifty members and the other fifty non-members; all these farmers were randomly selected from Ndonga and Maqhashu in Lady frère. The study investigated and profiled the socio-economic situation of the communities of Ndonga and Maqhashu with particular emphasis on the employment and poverty situations, as well as the income earning opportunities in the communities. It also undertook a comparison of the members and non-members of the co-operatives in terms of their production results under the sorghum production programmes in the two communities.The data were analyzed by means of descriptive and inferential statistics which explain some measures of central tendency and dispersion as well as levels of significance. A t-test of independent samples was used to compare the means for the sorghum yields and revenues for non-members and members of the co-operative. Gross margin analysis was also used to determine the financial implications of cooperation for the smallholders. In addition, a multiple regression model and a discriminant function were fitted to determine the factors explaining the differences in performance of members and non-members of the cooperative society. The Gross Margin analysis shows that the cooperatives are operating at a loss, meaning they produce less with high production costs. However, the results also show that the Ndonga and Maqhashu sorghum co-operative did not benefit only its members but the whole community through significant job creation for the local population.
- Full Text:
- Authors: Manciya, Sixolise
- Date: 2012
- Subjects: Sorghum industry -- South Africa -- Eastern Cape , Poor -- Employment -- South Africa -- Eastern Cape , Poverty -- South Africa -- Eastern Cape , Agriculture, Cooperative -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Farmers -- South Africa -- Eastern Cape -- Economic conditions , Job creation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11180 , http://hdl.handle.net/10353/d1001026 , Sorghum industry -- South Africa -- Eastern Cape , Poor -- Employment -- South Africa -- Eastern Cape , Poverty -- South Africa -- Eastern Cape , Agriculture, Cooperative -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Farmers -- South Africa -- Eastern Cape -- Economic conditions , Job creation -- South Africa -- Eastern Cape
- Description: In general, traditional co-operatives suffer from free-rider, horizon, portfolio, control and influence problems that starve them of both equity and debt capital. Evidently, the factors which constrain agricultural development also inhibit co-operative development in the former homelands. These factors include socio-economic as well as political factors operating in the environment of the cooperatives. In addition to these external factors, co-operatives have several internal problems such as inefficient management and lack of understanding of the co-operative concept and principles. The New Cooperative Act No. 14 of 2005 was an attempt at addressing these fundamental problems. The purpose of this study was to analyze the extent towhich cooperatives organized on the basis of this new Act have performed and to ascertainwhether or not they have met the expectations of the policy makers. In order to address these issues a structured questionnaire was used to interview 100 farmers. Farmers were divided into two groups, one group consisting of fifty members and the other fifty non-members; all these farmers were randomly selected from Ndonga and Maqhashu in Lady frère. The study investigated and profiled the socio-economic situation of the communities of Ndonga and Maqhashu with particular emphasis on the employment and poverty situations, as well as the income earning opportunities in the communities. It also undertook a comparison of the members and non-members of the co-operatives in terms of their production results under the sorghum production programmes in the two communities.The data were analyzed by means of descriptive and inferential statistics which explain some measures of central tendency and dispersion as well as levels of significance. A t-test of independent samples was used to compare the means for the sorghum yields and revenues for non-members and members of the co-operative. Gross margin analysis was also used to determine the financial implications of cooperation for the smallholders. In addition, a multiple regression model and a discriminant function were fitted to determine the factors explaining the differences in performance of members and non-members of the cooperative society. The Gross Margin analysis shows that the cooperatives are operating at a loss, meaning they produce less with high production costs. However, the results also show that the Ndonga and Maqhashu sorghum co-operative did not benefit only its members but the whole community through significant job creation for the local population.
- Full Text:
Assessing the role of cooperatives in poverty alleviation in the Eastern Cape: a the case of Amathole district municipality
- Authors: Vellem, Babalwa Faith
- Date: 2012
- Subjects: Poverty -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Employees -- Training of -- South Africa -- Eastern Cape , Employees -- In-service training -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:11669 , http://hdl.handle.net/10353/d1007113 , Poverty -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Employees -- Training of -- South Africa -- Eastern Cape , Employees -- In-service training -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Description: The study Assess the role of Cooperatives in Poverty Alleviation in the Eastern Cape Case Study of Amathole District Municipality how cooperatives are conducted in the Amathole District Municipality and establishes the perceptions of staff and members of the public about the service rendered by the municipality, and developing the mechanisms that can be used to identify cooperatives activities and how to improve the services rendered by the municipality, and if there are any challenges, they must be resolved. The research was also to look at how the support from government and other government agencies are used to enhance the cooperatives governance. Lastly, the research was to find the best model for cooperative development and what needs to be done to enhance the capacity of the cooperatives. The literature indicates that staff must be equipped with necessary skills; however it is evident that training and development is essential for the members of the cooperative. Questionnaires and interviews were used as a method of collecting data from the respondents. In this study, both qualitative and quantitative methods were used to analyse the data. The research assumption was that cooperative development is a viable tool for economic development of the rural areas. This can help many South Africans and many communities come out of poverty. However, there are limitations that were caused by the inability of government to co-ordinate cooperative development. Despite the role that cooperatives play in South Africa, cooperatives still experience a number of challenges. These challenges are, amongst others, lack of access to finance, lack of access to market, lack of business skills, lack of infrastructural facilities and lack of knowledge about the cooperative. In view of the challenges facing the cooperatives, the government instituted a number of state departments and parastatals for funding and other necessary support. These are DTI, DEDEA (in the Eastern Cape), ECDC, South African Development Agency (SEDA), Department of Labour and municipalities. The objectives of these support institutions are to provide necessary support needed by cooperatives and to ensure that cooperative development is sustainable.
- Full Text:
- Authors: Vellem, Babalwa Faith
- Date: 2012
- Subjects: Poverty -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Employees -- Training of -- South Africa -- Eastern Cape , Employees -- In-service training -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:11669 , http://hdl.handle.net/10353/d1007113 , Poverty -- South Africa -- Eastern Cape , Cooperative societies -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Employees -- Training of -- South Africa -- Eastern Cape , Employees -- In-service training -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Description: The study Assess the role of Cooperatives in Poverty Alleviation in the Eastern Cape Case Study of Amathole District Municipality how cooperatives are conducted in the Amathole District Municipality and establishes the perceptions of staff and members of the public about the service rendered by the municipality, and developing the mechanisms that can be used to identify cooperatives activities and how to improve the services rendered by the municipality, and if there are any challenges, they must be resolved. The research was also to look at how the support from government and other government agencies are used to enhance the cooperatives governance. Lastly, the research was to find the best model for cooperative development and what needs to be done to enhance the capacity of the cooperatives. The literature indicates that staff must be equipped with necessary skills; however it is evident that training and development is essential for the members of the cooperative. Questionnaires and interviews were used as a method of collecting data from the respondents. In this study, both qualitative and quantitative methods were used to analyse the data. The research assumption was that cooperative development is a viable tool for economic development of the rural areas. This can help many South Africans and many communities come out of poverty. However, there are limitations that were caused by the inability of government to co-ordinate cooperative development. Despite the role that cooperatives play in South Africa, cooperatives still experience a number of challenges. These challenges are, amongst others, lack of access to finance, lack of access to market, lack of business skills, lack of infrastructural facilities and lack of knowledge about the cooperative. In view of the challenges facing the cooperatives, the government instituted a number of state departments and parastatals for funding and other necessary support. These are DTI, DEDEA (in the Eastern Cape), ECDC, South African Development Agency (SEDA), Department of Labour and municipalities. The objectives of these support institutions are to provide necessary support needed by cooperatives and to ensure that cooperative development is sustainable.
- Full Text:
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