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An economic analysis of the relationships between land values, agricultural commodity prices and land reform issues in South Africa /Ziqubu, Allison. January 2009 (has links)
Thesis (M.Comm.) - University of KwaZulu-Natal, Pietermaritzburg, 2009. / Full text also available online. Scroll down for electronic link.
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Improving access by smallholder farmers to organic crop supply chains : evidence from the Ezemvelo Farmers' Organization, KwaZulu-Natal, South Africa.Mushayanyama, Tinashe. January 2005 (has links)
The 48 members of the Ezemvelo Farmers' Organisation (EFO) in KwaZulu-Natal (KZN), South
Africa (SA), that were fully-certified as organic farmers were surveyed during October-December
2004 to assess their perceived level of satisfaction, trust, cooperation and commitment in a
formal supply chain producing amadhumbes (a traditional vegetable tuber), potatoes and sweet
potatoes for a major SA supermarket group. Empirical recursive models show that a high level of
satisfaction in the working relationship results in these farmers trusting the pack-house agent
more. High levels of trust, in turn, lead to higher levels of both commitment to, and cooperation
in, the supply chain. A simultaneous-equation model showed that EFO farmers with higher levels
of commitment tend to be more cooperative, and that members with higher levels of cooperation
tend to be more committed toward the working relationship.
These results suggest that strategies to improve the working relationship with the pack-house
agent need to promote satisfaction, trust, cooperation and commitment. For example, co-investment
in better crop storage facilities at farm-level would promote satisfaction and hence
trust. There is also scope for more cooperation in the planning of new organic crop products to
grow and market, and to remove some price uncertainty by giving EFO farmers more information
about prices that they will be paid by the pack-house agent in this supply chain. In addition,
satisfaction and, hence, trust, cooperation and commitment may be improved by adopting a formal
contract between the EFO farmers and the pack-house agent to replace the current, incomplete
verbal contract that governs trading. Some issues that may be addressed in this contract are
improved communication systems via regular meetings, renegotiations of trading terms so that
farmers can benefit from positive changes in organic crop prices; guidelines for paying farmers
more quickly by the pack-house agent; mechanisms to trace crop quality to a specific farmer to
avoid free riding; and penalties for breaching the contractual arrangements.
The 48 EFO farmers were also asked to give their perceptions of the main constraints on
organic crop production and marketing in the formal organic crop supply chain. They
perceived that uncertain climate, unavailability of tractor or draught power when needed,
delays in payments for crops sent to the pack-house, lack of affordable inputs (particularly
labour and manure), a lack of cash and credit to finance inputs, lack of affordable transport to
market crops, more work than the family can handle, a lack of manure to purchase; and a lack
of crop storage facilities and telephones to negotiate sales as the current top 10 constraints.
Principal Component Analysis summarized the underlying dimensions in the 20 constraints
ranked by these farmers as indicating "lack of market information and lack of market power";
"crop production expansion constraints"; "commitment to crop area expansion"; "lack of
liquidity"; "lack of proper storage facilities"; and "lack of information about alternative
markets".
Potential solutions to better manage these perceived constraints include: improved risk
management practices (e.g., supplemental irrigation, water-harvesting and small boreholes),
improving access to tractor services via improved tractor scheduling or using local contractor
services, quicker pack-house delivery payments, improving quality inspection at the departure
points at EFO farm-level to reduce crop rejection rates and "free riding" by producers of lower
quality organic crops, more interaction with the retailer to promote sales of organic crops,
providing advice on how the EFO farmers can improve their bargaining power, and providing
more information (e.g. crop prices) about other organic markets and changing consumer
preferences. Apparently, the costs and benefits of these potential solutions, and how they will
be financed, need to be evaluated.
Real accounting marketing margins since 2001 showed that the farmer's share of the
consumer's rand for the 48 fully certified organic EFO farmers rose, while their net returns
(selling price less accounting costs) were lower than those of the pack-house agent and
hawkers selling at the Isipingo market on the South Coast of KZN. Net returns for the 48 EFO
farmers also seemed to be relatively higher if they sold through the informal supply chain
(hawkers) rather than the formal supply chain. The EFO farmers' net returns may be improved
by lowering operating costs and by aggressive marketing to customers willing and able to pay a
price premium for organic crops. These farmers may also consider performing some of t he
marketing services themselves (e.g. crop cleaning, grading and packaging) if they have the
skills and can access more finance. There are, however, hidden benefits from maintaining the
formal supply chain relationship, as the pack-house agent helped to secure tractor services and
fencing, and facilitates access to the retailer. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.
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Investigation of marketing of small-scale peanut agribusinesses in the Vulamehlo District, Southern KwaZulu-Natal /Sonjica, Ivy. January 2008 (has links)
Thesis (M.Soc.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2008. / Full text also available online. Scroll down for electronic link.
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Uma contribuição para mensuração dos ativos biológicos e produto agrícola sem mercado ativo e seus reflexos contábeisRibeiro, Douglas Tadeu de Oliveira 24 June 2013 (has links)
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Previous issue date: 2013-06-24 / The present study contributed to establish a cash flow model to measure the fair value of any biological asset teaching through examples based on best practices in asset valuation used by the market. Although CPC 29 (equivalent to international financial reporting standard IAS 41) establishes a level of hierarchy for measuring fair value, many assessments are performed using the discounted cash flow, in the absence of an active market or in the absence of market for the asset in its present condition, even if there is an active market for the mature biological asset. Given this difficulty, the method of discounted cash flow for the present value is used to evaluate a wider range of biological assets. The main aspect discussed was how to translate the elements necessary for an asset valuation by the method of discounted cash flow applied to different crops and also livestock. The accounting effects are different for each type of entity, farming or agribusiness, as well as its effects on the distribution of dividends and tax treatment. This study also evaluate the need for modification of internal controls to account for the fair value of agricultural produce for industrial entities and its practical implications. Since it is a relevant estimate in the financial statements, the measurement must be accompanied by extensive disclosures of significant assumptions used, which has not yet happened in the disclosures analyzed listed Brazilian companies. In many cases the disclosure makes comparison between companies operating in the same sector, since important information is not disclosed. The study also considers the effects of fair value of biological assets on the financial statements of the public entities and if the notes are sufficient to provide user with enough information to allow comparison / O presente estudo contribuiu para estabelecer um modelo de fluxo de caixa para mensuração do valor justo para qualquer ativo biológico, por meio de exemplos didáticos, com base nas melhores práticas de avaliação de ativos utilizadas pelo mercado. Embora o Pronunciamento Técnico CPC 29 (equivalente à norma internacional IAS 41) estabeleça um nível de hierarquia para mensuração do valor justo, muitas avaliações são realizadas utilizando-se o fluxo de caixa descontado, seja pela ausência de um mercado ativo ou pela ausência de mercado para o ativo na condição em que ele se encontra, mesmo que exista mercado ativo. Diante dessa dificuldade, a metodologia de fluxo de caixa descontado para obter o valor presente é utilizada para avaliar a maior variedade de ativos biológicos. O principal aspecto analisado foi como traduzir os elementos necessários para uma avaliação de ativos pelo método do fluxo de caixa descontado, aplicado às diferentes culturas agrícolas e também à pecuária. Os reflexos contábeis são diferentes para cada tipo de entidade, seja agrícola ou agroindústria, bem como os seus efeitos sobre a distribuição de dividendos e tratamento fiscal. O estudo avalia, igualmente, a necessidade de alteração dos controles internos para considerar o valor justo do produto agrícola naquelas empresas agroindustriais e suas implicações práticas. Por se tratar de uma estimativa relevante nas demonstrações financeiras, a mensuração deve ser acompanhada de extensa divulgação das premissas relevantes utilizadas, o que ainda não se verifica nas divulgações analisadas das empresas brasileiras de capital aberto. Em muitos casos, a divulgação dificulta a comparação entre empresas que operam no mesmo setor, já que informações importantes não são divulgadas. O estudo também trata dos efeitos do valor justo dos ativos biológicos sobre demonstrações financeiras das entidades abertas e se as divulgações são suficientes para permitir a comparabilidade pelos seus usuários
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Factors influencing smallholders participation in agricultural markets in Southern Niassa, Mozambique.Lukangu, Gastao. January 2005 (has links)
Government, donors and NGOs in southern Niassa have been, after the 1992 peace
agreement, extensively involved in agricultural development programmes to improve
smallholders' food security. A study of the area and literature review revealed that many
factors limited the benefits of agricultural market development programmes. Yet,
opportunities in southern Niassa suggested that appropriately designed programmes could
improve the standard of living of smallholders if these programmes were designed on a
solid understanding of factors and strategies influencing agricultural market participation by
smallholders.
The main research hypothesis of this study was that: smallholders would participate in
agricultural markets when their wealth status was high, when they had enough available
household labour and when cash crops were profitable." Four main hypotheses were
investigated: (i) factors and strategies identified through smallholder perceptions would
provide local and time specific information on the constraints and solutions to smallholder
market participation; (ii) wealth status and wealth-ranking factors were positively related to
market participation where agriculture was the main economic activity as in southern
Niassa; (iii) labour aspects such as crop labour requirements (CLR) could be negatively
related, while available household labour (AHL) and the ratio AHL/CLR could be
positively related to smallholders cultivation of cash crops and subsequent participation in
agricultural markets; and (iv) aspects of profitability and indicators could be used to predict
smallholder cash crop preferences.
Data for this study were collected in Cuamba district of Mozambique from nine focus group
discussions (FGDs) with community leaders, 287 household-head questionnaires and staff
interviews during September 2002. Nine villages were randomly selected. The leaders'
FGDs provided the criteria utilised to rank households according to wealth status and much
of the qualitative information of this study. The wealth-ranking tool was used to identify
and analyse the socio-economic factors that influenced smallholder market participation. A
follow-up interview of managers of promoting institutions also provided greater insight on
some aspects raised by smallholders. The study employed (i) descriptive statistics such as
means and frequencies; (ii) correlation analysis and standard scores (iii) qualitative analysis
was also used for some wealth-ranking, perceived labour demand and aspects of
profitability influencing cash crop cultivation, preference and market participation based on
information from FGD, farmers and staff; and (iv) simple mathematical expressions for
analysis and interpretation of the research findings.
This study relied on perceptions, knowledge and experience of smallholders, leaders and
leaders of promoting institutions. Smallholder-suggested factors and strategies were in line
with the limitations of socio-economic characteristics such as low effective household
labour, particularly for females. These strategies included an improvement in outputs and
inputs markets, agricultural services and credit at a subsidised prices or low interest rates.
Other strategies for improving smallholders' participation in agricultural markets included
promotion of profitable cash crops, household food security, provision of extension support
services and information about cultivation and agricultural markets. However, smallholders
did not identify some factors that have been acknowledged to influence agricultural market
participation: ecological and natural resources, policies, institutional infrastructures and
physical infrastructures. Smallholders also did not mention socio-economic factors (except
household labour) as influencing their decisions to participate in agricultural markets in
spite of the fact that researchers assume these factors in almost every study on smallholder
market participation.
The findings of this research confirmed that a wealth-ranking tool could be used to identify
the socio-economic factors affecting smallholders' participation in agricultural markets. The
identified wealth-ranking factors such as labour, livestock number, implements and bicycles
significantly correlated with wealth status and subsequently to smallholder agricultural
market participation. Conversely, household socio-economic characteristics not indicated as
wealth-ranking factors such as age and gender related poorly to market participation. The
wealth-ranking tool could also be used to identify strategies for improving smallholder
participation in agricultural markets, and to evaluate an agricultural market development
programme.
The study found that, other factors being held constant, CLRs were negatively related to
market participation. Weeding was the most labour intensive operation followed by
harvesting, soil preparation, transportation, land clearing and seedling preparation. It also
found that AHL and the ratio AHL/CLR were positive and significantly related to market
participation. The ratio AHL/CLR together with household consumption requirements and
yield were used to estimate the total area a household could cultivate, both for food crops
for consumption and for cash crops; the proportion of farmers likely to participate in the
market; and those unable to cultivate enough for consumption.
The research also confirmed that profitability-related aspects correlated to cash crop
preferences. Yield was the most important factor that influenced smallholders' preference
for cash crops. It was also found that indicators incorporating more aspects of profitability
correlated strongly with cash crop preferences. The correlation increased as more aspects
were incorporated. A crop, such as tobacco, with a profit of more than twice the profit for
food cash crops was preferred more than food cash crops. The indicators and underlying
aspects of profitability were used to interpret the current and projected cash crop preference. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.
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An economic analysis of the relationships between land values, agricultural commodity prices and land reform issues in South Africa.Ziqubu, Allison. January 2009 (has links)
This thesis is an implicit farmland value study which explores the possible effects of agricultural commodity prices, interest rate and land reform issues on farmland values. The study examines the impacts of these fundamental factors (interest rates and returns to farmland as determined by crop prices) on sugar cane farmland values, maize farmland values, on deciduous fruit (apples and pears) farmland values, and on aggregate South African farmland values. Expectations are that land reform influences the demand for farmland. Since farmland prices are demand driven, changes in the demand for farmland (as influenced by land reform issues) may result in changes in farmland prices. The study thus seeks to empirically examine, to a larger extent, the long-run influence of endogenous factors on farmland prices. Causes of cyclical behaviour in farmland prices are also examined. The study draws on cross-sectional and time series studies of previous research on farmland values. The maximum likelihood Johansen (1991) procedure of cointegration is used to estimate the relationship between fundamental factors and farmland values. The logit model is used to estimate the influence of land reform on the demand for farmland, hence farmland prices. Unit root and the Johansen cointegration test results proved that long-run relationships exist between farmland values and returns to farmland; the use of cointegration methods was thus recommended. Long-run changes in farmland prices are caused by fundamental factors. Short-run variations in farmland prices are caused by exogenous factors that affect net farm income and this lead to boom-bust cycles in farmland values. / Thesis (M.Comm.) - University of KwaZulu-Natal, Pietermaritzburg, 2009.
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Augalininkystės produkcijos savikainos skaičiavimo metodika / Methodics of Plant Production Cost CalculationDereškaitė, Rima 24 May 2005 (has links)
Research object – agricultural enterprises. Research subject – methodics of plant production cost calculation. Research aim – to analyze references and practical methods employed in plant produce cost calculation and to propose methodics improvements of plant production cost calculation. Objectives: 1) to analyze the essence of expenditure and production cost; 5) to examine the structure of production cost and to substantiate the expedience of expenditure calculation into cost; 6) to study methodics of plant production cost calculation in agricultural enterprises; 7) to submit proposals for improvement methodics of plant production cost calculation based on references study and research results. Research methods – logical and comparative analysis and synthesis of literature by Lithuanian and foreign authors, questionnaire questioning of agricultural enterprises, methods of logical and graphic modeling. After the study of produce cost essence, indices and their composition, calculation system and plant produce cost calculation methodology applied at agricultural enterprises, proposals were submitted for improvement methodics of plant production cost calculation.
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Assessment of factors hindering marketing among smallholder vegetable cooperative farmers in Polokwane Municipality, Limpopo Province, South AfricaSebetha, Piletjo January 2021 (has links)
Thesis (MSc. Agriculture (Agricultural Economics)) -- University of Limpopo, 2021 / The South African agricultural sector plays an important role in creating jobs, alleviating food insecurity and poverty, and also contributes to exports. Agricultural produce from smallholder farmers is often lost after production due numerous marketing challenges which make it difficult for smallholder farmers to explore full market potentials. This, among other challenges, reduces smallholder farmers’ motivation to participate in formal (commercial) or high-value markets.
The study aimed at assessing factors hindering marketing among smallholder vegetable cooperative farmers in the Polokwane Municipality. The objectives of the study were to: identify and describe socio-economic characteristics of smallholder vegetable cooperative farmers; examine the influence of socioeconomic characteristics of smallholder vegetable cooperative farmers; identify factors hindering marketing among smallholder vegetable cooperative farmers and constraints faced by smallholder vegetable cooperative farmers in the study area. Primary data with a sample size of hundred and twenty smallholder vegetable cooperative farmers was used. Descriptive statistics, the Marketing Hindrance Index and Tobit Model were employed as analytical tools to achieve the objectives of the study.
Results of data analysis revealed that there are factors hindering marketing among smallholder vegetable cooperative farmers in the Polokwane Municipality. The major factors affecting smallholder farmers are source of water and types of vegetables grown, respectively. From the Tobit Model results, access to credit, access to reliable information about marketing, age, access to storage and farming experience in years were found to be significant.
In view of the research findings, the recommendations of this study include: encouraging youth participation in agriculture, improved access to agricultural information and formal market access, improved access to credit and enabling accessibility through the development of better infrastructure in the form of storage facilities.
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Appropriate institutional and contractual arrangements for the marketing of organic crops produced by members of the Ezemvelo Farmers' Organisation in KwaZulu-Natal.Gadzikwa, Lawrence. January 2010 (has links)
The Ezemvelo Farmers’ Organisation (EFO) is a certified organic smallholder group in KwaZulu-Natal province (South Africa) that exists as an institution to improve smallholder access to niche markets by reducing unit production and transaction costs. The study is motivated by the need to understand drivers of collective action, prevalence of internal group free-riding, and the impact of contract terms on contract performance. These three theoretical concepts are pertinent in understanding organisational and institutional issues affecting the performance of smallholder organic farming groups and in formulating policies to promote the performance of such groups. The study relies on the theoretical
foundations of collective action, free-riding and contracts found within the realm of New Institutional Economics (NIE). These theories, though separate, are in fact related in certain respects. Collective action in smallholder groups, apart from being a function of a plethora of socio-economic factors, including transaction costs, could be constrained by free-riding within the group, which in turn could be influenced by flawed contractual arrangements. This study of collective action focuses on 200 farmers drawn from a sample survey of 49
non-EFO members, and a census survey of 103 partially certified and 48 fully certified EFO members. A ‘collective action’ model investigates the impact of perceived benefits and savings on production and transaction costs attributed to collective action by drawing comparisons between EFO members and non-members using a multinomial logit model. The study of free-riding uses data from 151 members of the EFO to construct an index of free-riding within the group using principal components analysis (PCA). A ‘contract model’, which also focuses on EFO members only, attempts to measure the impact of
verbal contract provisions on contract performance in addition to evaluating the determinants of preferred contract terms using a combination of PCA, Ordinary Least Squares (OLS) regression, and logit models. Results indicate that continued participation in EFO is not influenced by the age or gender of the farmer, but positively influenced by growth in the net benefits of participation, and negatively by an increase in the size of the household’s cropland or on-farm earnings. With respect to production and transaction costs, the results suggest that EFO has reduced fully certified members’ concerns that crops would be damaged by livestock or constrained by inadequate technical information. However, this is not the case for other problems such as price uncertainty in conventional markets, a lack of affordable operating inputs, a lack
of affordable transport, and a lack of communications infrastructure. The index of free-riding behaviour constructed using principal components analysis
suggests that free-riding poses a serious threat to EFO’s collective marketing efforts. Ordinary Least Squares regression analysis of the index scores shows that members who are male, poorly educated, partially certified, aware of loopholes in the grading system, and who do not trust the buyer are more likely to free-ride. Benefits accruing to EFO members are limited and there is substantial confusion among members about the terms of EFO’s verbal contract with the pack house that purchases their organic produce. Ordinary Least Squares regression analysis of the impact that perceived contractual terms have on quantities delivered to the pack house yielded interesting
findings. Perceptions that delivery calls are made by the buyer, that grading procedures are flawed and that prices are not jointly established were found to reduce quantities delivered to the pack house, after controlling for differences in farm and farmer characteristics. Logit models estimated to identify the determinants of preferred contract clauses indicate that farmers with higher levels of formal education and farm income, and lower levels of experience, favour a written contract over a verbal contract. Similarly, farmers with higher
levels of formal education and lower levels of family farm labour favour a contract
denominated by area rather than weight. It is concluded that EFO should recruit households that rely on farming for income and which are land constrained. EFO is more likely to survive if it continues to secure fully
subsidised information, transport, fencing, and certification services for its members, and if it improves the benefits of participating by synchronising harvest and delivery dates, negotiating price discounts for organic inputs, and by maintaining an office with telephone, fax and postal services. In the longer-term, EFO should address institutionalised free-riding by issuing tradable ownership rights. In the short-term, EFO must engage with the pack
house (buyer) to remove flaws in the grading process that conceal the origin of low quality produce. Transparent and mediated negotiations leading to an incentive compliant contract with the buyer may also help to build trust and reduce free-riding within EFO. It is also recommended that the terms of EFO’s contract with the pack house should be revised so that; (a) delivery calls can be made by either the pack house or by EFO during specified periods and with reasonable notice, and (b) grading procedures are fully transparent and ensure traceability so that losses caused by poor quality can be internalised to members who deliver inferior produce. In addition, it is important that prices be
negotiated at the beginning of each season and that the contractual parties have recourse to pre-agreed facilitators and an arbitrator to resolve disputes on price and quality. A written contract is recommended to support these more complex terms, with the proviso that the contract is explained to current and prospective members, and that growers are fully informed of their rights and obligations. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2008.
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Perceptions and management of risk by commercial farmers in Eritrea.Mohammed, Mohammed Abdurahman. January 2004 (has links)
A survey of 186 commercial farmers from three Zobas (provinces) of Eritrea was
conducted between November 2002 and February 2003 to examine farmers' perceptions
of risk, to determine the most important sources of risk affecting farmers' decisions, to
identify managerial responses to risks and to identify information use. As part of the main
survey, 74 randomly selected commercial dairy farmers were also interviewed to identify
factors that affect the purchase of livestock insurance.
Findings show that whilst some risks are of concern to most farmers, others are more
enterprise or region specific. In general, changes in weather, changes in the labour force,
and diseases, pests and weeds were identified as being important sources of risk for most
farmers. Factor analysis was used to analyse heterogeneity amongst farmers' perceptions
of various risks. Results indicate that programmes designed to assist farmers in Eritrea to
manage production and price risks should vary between enterprises and between regions.
Policy implications of this research include that the government of Eritrea should
disseminate information to clarify agricultural tax and land policies, and its
demobilization and rehabilitation programmes. Relaxing foreign exchange rate controls
may reduce price risks in agricultural input markets.
Increased use of information sources, choice of production system, keeping production
records, and diversification of farm enterprises were found to be the main production
responses to risk. Important marketing responses included indirect selling (e.g. to the
grain board or wholesalers) and use of marketing information, while important financial
responses were keeping financial records and investing off-farm. Factor analysis was
used to analyse heterogeneity amongst farmers' managerial responses to risk. Results
indicate that farmers respond differently to different types of risk attributed to enterprise
type. Policy implications of this research include that the government of Eritrea should
create a more conducive environment for business, train farmers with appropriate record
keeping skills and improve road and communication infrastructure.
Results also show that farmers' sources of information vary according to farm type.
While poultry and dairy farmers depend largely on information provided by the
government, horticulture and crop farmers rely mostly on their own sources of
information or non-governmental sources. Policy recommendations include additional
and appropriate record-keeping training for farmers, improving the road and
communication infrastructure, promoting commercial information providers, and
periodically publishing an agricultural magazine by the Ministry of Agriculture in a way
that farmers can understand the information.
The results of a logit model of the adoption of livestock insurance indicate that formal
education of the farmer and the farmer's awareness of livestock insurance increase the
probability of insurance adoption, whereas farming experience, poor location and use of
alternative risk management strategies, such as off-farm investments and farm enterprise
diversification, reduce the probability of livestock insurance adoption. Further insight
into the socioeconomic factors influencing farmers' adoption of livestock insurance may
assist policy makers and the National Insurance Corporation of Eritrea in their future
plans. Results of this study have some policy implications, such as the need for a variable
rather than fixed insurance premium, improving the know-how of farmers concerning
risk assessment, improving Zobas' infrastructure and a need for a thorough study to be
conducted on the demand for agricultural insurance in Eritrea. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.
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