Access to credit and the effect of credit constraints on household welfare in the Eastern Cape province, South Africa
- Baiyegunhi, Lloyd-James Segun
- Authors: Baiyegunhi, Lloyd-James Segun
- Date: 2009
- Subjects: Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11153 , http://hdl.handle.net/10353/d1000977 , Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- 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: 2009
- Authors: Baiyegunhi, Lloyd-James Segun
- Date: 2009
- Subjects: Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11153 , http://hdl.handle.net/10353/d1000977 , Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- 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: 2009
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
An investigation of skills, knowledge and farmer support programmes of land reform beneficiaries :a case study of Forest Hill farmers in Kenton-on-Sea in the Ndlambe Local Municipality
- Authors: Tshuma, Mengezi Chancellor
- Date: 2013
- Subjects: Land reforms -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11205 , http://hdl.handle.net/10353/d1013109 , Land reforms -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape
- Description: black owners by white colonialists. Even though whites made up less than 20% of the nation‟s population, they took more than 80% of the agriculturally productive land and drove the original owners to the unproductive reserves where they were cramped and could not practice agriculture at all. Various acts such as the Black Land Act of 1913, Development Trust Act of 1936 and the Native Laws Amendment Act of 1937 were introduced which further frustrated the displaced black population thereby plunging it deeper and deeper into poverty. The main objective behind the introduction of these acts was to restrain the black population from earning livelihoods through agriculture thus forcing them to offer their labour to white farmers for low wages just to earn some form of livelihood. Such unfair practices and distribution of land prompted the first democratically elected government of South Africa to embark on a drive to redistribute the nation‟s land equitably amongst its citizens to foster national reconciliation, stimulate economic growth and compensate those that were forced out or lost their land during the apartheid era. This initiative was called the Land Reform Programme (LRP) and was implemented with three prongs namely (i) land redistribution; (ii) restitution; and (iii) land tenure. Among the beneficiaries of the LRP were farmers from a community called Marselle in Kenton-on-sea. In addition to getting land for farming purposes, the Marselle farmers also obtained financial support from the government‟s Land Bank to help them kick-start their farming activities. However, in spite of such interventions, they have struggled to turn their activities into sustainable livelihood sources. One most likely cause for this is the lack of farming knowledge and skills needed to make them more efficient and productive. This study was thus geared towards evaluating the knowledge and skills gap in Marselle which, when addressed, could make the Marselle farmers more productive. Its focus was limited to the 32 livestock and 8 chicory farmers that are recognized members of their respective projects. Focus was limited only to these farmers since the next phase of this study will involve building their capacity based on the skills gaps identified through this study. The findings showed that the two projects benefited at least 130 individuals belonging to the farming households, with 67.5% of these households headed by males. The age of these farmers was equally shared at 40% each between those above 65 years and those that only went as far as fourth grade. No one went to tertiary at all. At least 75% of the investigated farmers were unemployed and 42% of this population was pensioners. In terms of income though, 64.98% of it was from external sources. The Masakhane Silime (Chicory) project was implemented to generate income and provide job opportunities for the locals but neither of these objectives had been met at the time the data for this study was collected due to various challenges like lack of funds and infrastructure to enhance productivity. Just like the chicory project, the livestock project had its own objectives, namely; to remove animals from the residential areas, provide the animals with a safe place, reduce road accidents and also to provide a livelihood source for local farmers. Due to overgrazing the pastures, lack of proper camps and other challenges, some effort still needs to be put to achieve these objectives. Even though the livestock project was formed with these objectives in mind, the farmers themselves reared livestock either for personal consumption, selling, ritual purposes, store of wealth or all these combined. Regarding technical skills, livestock farmers were found to rely mostly on indigenous knowledge sources to attain farming knowledge. Only animal healthcare knowledge was popular to more than half the respondents. This was said to be due to the focus group meetings held on the farm every other Wednesday to share information with local extension officers. In spite of these information sharing events, livestock farmers identified training on how to feed; market; handle; and treat their livestock as key intervention knowledge areas. Attendance to these focus group meetings was limited to livestock farmers only. Various socio-economic factors were also found to have some form of influence on the acquisition of livestock knowledge. Education was the most dominant factor, with a significant association with the farmers‟ feeding (p=0.033); animal healthcare (P=0.038); marketing (p=0.009); veld management (p=0.036); and cattle slaughtering (p=0.027) knowledge. Other variables most influential include the gender and age of the household head. The former was significant at 95% confidence level for farmers‟ feeding knowledge (p=0.021); animal healthcare (p=0.039); marketing (p=0.043); livestock housing and handling (p=0.023); veld management (p=0.018); and cattle slaughtering (p=0.043). The dominance of males in acquiring these skills could be explained by the fact that the majority of the livestock project members were males. The majority of the few female members became members by default after the passing on of their husbands but their participation in the project was done through other project members who looked after their animals on their behalf. The number of farming years also had some positive and significant influence on other knowledge areas such as feeding (p=0.021) and livestock housing and handling (p=0.013). The logic supporting this association is that farmers tend to accumulate new and more skills the longer they stay in the same enterprise. In addition, most of the interviewed farmers were farm labourers prior to relocating to Marselle hence they acquired the necessary knowledge long before the project started. Concerning the chicory project, its members also relied heavily on indigenous knowledge sources for farming knowledge. Soil preparation (24.1%); planting (20.7%); land care (24.1%); and mechanical weed control (48.3%) were the knowledge areas lacked by more than half the respondents. The farmers identified land preparation (75%); communication skills (25%); marketing (100%); financial management (62%); and harvesting (88%) as the key crucial intervention areas they needed prioritized. As a study meant to inform the capacity building phase of the Land Bank project, this study identified the existing skills gaps in the two projects implemented in Forest Hill. When implementing the Capacity Building (CB) phase, various socio-economic factors will have to be considered. For example, the proposed intervention should not discriminate against anyone on the grounds of gender or physical abilities. The skills introduced should also be simple enough to be accepted and acquired even by the illiterate, especially when one considers the high illiteracy levels amongst the respondents. Efforts should also be made to create partnerships with the right organizations or groups of people so that they provide the required expertise and resources for the benefit of the farmers as and when required.
- Full Text:
- Date Issued: 2013
- Authors: Tshuma, Mengezi Chancellor
- Date: 2013
- Subjects: Land reforms -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11205 , http://hdl.handle.net/10353/d1013109 , Land reforms -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape
- Description: black owners by white colonialists. Even though whites made up less than 20% of the nation‟s population, they took more than 80% of the agriculturally productive land and drove the original owners to the unproductive reserves where they were cramped and could not practice agriculture at all. Various acts such as the Black Land Act of 1913, Development Trust Act of 1936 and the Native Laws Amendment Act of 1937 were introduced which further frustrated the displaced black population thereby plunging it deeper and deeper into poverty. The main objective behind the introduction of these acts was to restrain the black population from earning livelihoods through agriculture thus forcing them to offer their labour to white farmers for low wages just to earn some form of livelihood. Such unfair practices and distribution of land prompted the first democratically elected government of South Africa to embark on a drive to redistribute the nation‟s land equitably amongst its citizens to foster national reconciliation, stimulate economic growth and compensate those that were forced out or lost their land during the apartheid era. This initiative was called the Land Reform Programme (LRP) and was implemented with three prongs namely (i) land redistribution; (ii) restitution; and (iii) land tenure. Among the beneficiaries of the LRP were farmers from a community called Marselle in Kenton-on-sea. In addition to getting land for farming purposes, the Marselle farmers also obtained financial support from the government‟s Land Bank to help them kick-start their farming activities. However, in spite of such interventions, they have struggled to turn their activities into sustainable livelihood sources. One most likely cause for this is the lack of farming knowledge and skills needed to make them more efficient and productive. This study was thus geared towards evaluating the knowledge and skills gap in Marselle which, when addressed, could make the Marselle farmers more productive. Its focus was limited to the 32 livestock and 8 chicory farmers that are recognized members of their respective projects. Focus was limited only to these farmers since the next phase of this study will involve building their capacity based on the skills gaps identified through this study. The findings showed that the two projects benefited at least 130 individuals belonging to the farming households, with 67.5% of these households headed by males. The age of these farmers was equally shared at 40% each between those above 65 years and those that only went as far as fourth grade. No one went to tertiary at all. At least 75% of the investigated farmers were unemployed and 42% of this population was pensioners. In terms of income though, 64.98% of it was from external sources. The Masakhane Silime (Chicory) project was implemented to generate income and provide job opportunities for the locals but neither of these objectives had been met at the time the data for this study was collected due to various challenges like lack of funds and infrastructure to enhance productivity. Just like the chicory project, the livestock project had its own objectives, namely; to remove animals from the residential areas, provide the animals with a safe place, reduce road accidents and also to provide a livelihood source for local farmers. Due to overgrazing the pastures, lack of proper camps and other challenges, some effort still needs to be put to achieve these objectives. Even though the livestock project was formed with these objectives in mind, the farmers themselves reared livestock either for personal consumption, selling, ritual purposes, store of wealth or all these combined. Regarding technical skills, livestock farmers were found to rely mostly on indigenous knowledge sources to attain farming knowledge. Only animal healthcare knowledge was popular to more than half the respondents. This was said to be due to the focus group meetings held on the farm every other Wednesday to share information with local extension officers. In spite of these information sharing events, livestock farmers identified training on how to feed; market; handle; and treat their livestock as key intervention knowledge areas. Attendance to these focus group meetings was limited to livestock farmers only. Various socio-economic factors were also found to have some form of influence on the acquisition of livestock knowledge. Education was the most dominant factor, with a significant association with the farmers‟ feeding (p=0.033); animal healthcare (P=0.038); marketing (p=0.009); veld management (p=0.036); and cattle slaughtering (p=0.027) knowledge. Other variables most influential include the gender and age of the household head. The former was significant at 95% confidence level for farmers‟ feeding knowledge (p=0.021); animal healthcare (p=0.039); marketing (p=0.043); livestock housing and handling (p=0.023); veld management (p=0.018); and cattle slaughtering (p=0.043). The dominance of males in acquiring these skills could be explained by the fact that the majority of the livestock project members were males. The majority of the few female members became members by default after the passing on of their husbands but their participation in the project was done through other project members who looked after their animals on their behalf. The number of farming years also had some positive and significant influence on other knowledge areas such as feeding (p=0.021) and livestock housing and handling (p=0.013). The logic supporting this association is that farmers tend to accumulate new and more skills the longer they stay in the same enterprise. In addition, most of the interviewed farmers were farm labourers prior to relocating to Marselle hence they acquired the necessary knowledge long before the project started. Concerning the chicory project, its members also relied heavily on indigenous knowledge sources for farming knowledge. Soil preparation (24.1%); planting (20.7%); land care (24.1%); and mechanical weed control (48.3%) were the knowledge areas lacked by more than half the respondents. The farmers identified land preparation (75%); communication skills (25%); marketing (100%); financial management (62%); and harvesting (88%) as the key crucial intervention areas they needed prioritized. As a study meant to inform the capacity building phase of the Land Bank project, this study identified the existing skills gaps in the two projects implemented in Forest Hill. When implementing the Capacity Building (CB) phase, various socio-economic factors will have to be considered. For example, the proposed intervention should not discriminate against anyone on the grounds of gender or physical abilities. The skills introduced should also be simple enough to be accepted and acquired even by the illiterate, especially when one considers the high illiteracy levels amongst the respondents. Efforts should also be made to create partnerships with the right organizations or groups of people so that they provide the required expertise and resources for the benefit of the farmers as and when required.
- Full Text:
- Date Issued: 2013
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