This dissertation investigates the impact of institutional and governance factors on the performance of 10 selected smallholder agricultural cooperatives (case studies) in KwaZulu- Natal (KZN). All the selected cooperatives were traditionally structured (e.g., one-member, one-vote system). Due to logistical and administrative constraints, the selected smallholder cooperatives were drawn from the EThekwini and UMgungundlovu Districts (the latter comprising of two sub-districts, namely Camperdown and Msunduzi), which incorporate the major cities of Durban and Pietermaritzburg. Five of the cooperatives grow and market vegetables, three produce and market poultry, one is a beef production cooperative and another operates a bakery. Information from the interviews suggests that members of the selected smallholder cooperatives do not fully understand cooperative principles and have high expectations of potential benefits of being members. Descriptive analysis of the case studies describes total membership of each selected cooperative; average number of management meetings per month; gender and age composition of cooperative members; the characteristics of chairpersons of these cooperatives (e.g., gender, age and education); the initial capital structure of these cooperatives; annual turnover; growth opportunities; and institutional and governance factors influencing the performance of these cooperatives. The results of a cluster analysis suggest that the performance of the selected smallholder cooperatives is influenced by institutional and governance problems. Institutional problems give rise to low levels of equity and debt capital, reliance on government funding, low levels of investment, and subsequent loss of members. Governance problems are strongly linked to the absence of secret ballot, low levels of education, lack of production and management skills training, weak marketing arrangements and consequent low returns to members as patrons or investors. The conclusion is that appropriate institutional arrangements and good governance are important to the performance of enterprises initiated by groups of smallholders. South Africa’s new Cooperatives Act prevents smallholder cooperatives from adopting good institutional arrangements. Alternative ownership structures such as close corporations and private companies offer better institutional arrangements and opportunities for equity-sharing partnerships. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2009.

This research was undertaken to determine the extent to which share equity schemes have been successful. The research also investigated the possible causes of failure of the established share equity projects and sought to determine the feasibility requirements that may be put in place to ensure success and sustainability of the ventures in support of land reform. The methodology used involved comparing the data gathered from business plans, valuation reports and other project documents from the Department of Land Affairs (DLA) with the information gathered through interviews and observations. The results revealed causes of failure to include the fact that beneficiaries of the investigated equity schemes did not participate in business plan development or implementation and therefore had no sense of ownership in the intended joint ventures. It was also found that none of the business plans included any form of training for capacity building and therefore no mechanism for empowering beneficiaries existed to participate effectively at all levels of the farming enterprise. Furthermore, original farm owners as the majority shareholders tended to re-invest profits into farm assets rather than paying dividends. It was concluded that the inclusion of a training programme in every business plan is crucial to the success of farm share equity ventures as this may enable beneficiaries to be sufficiently empowered to participate effectively at all levels of the business. / Thesis (M.Env.Dev.) - University of KwaZulu-Natal, Pietermaritzburg, 2006.

Monitoring and evaluation is multidisciplinary. It is interpreted differently and is instituted to achieve different outcomes. In South Africa, monitoring and evaluation is fairly new and as such extensive research on it is required. It enjoys immense legislative support and is implemented by multiple role players as a reform initiative to safeguard the use of limited resources, improve transparency, enforce accountability, and ensure that there is value for money and to improve service delivery to satisfy the needs of the society. Using a quantitative research method in which a research questionnaire was administered to a representative sample of respondents that were selected from the study area, the findings of this study reveals both the areas of effective and ineffective implementation of monitoring and evaluation. Effective implementation is verified by the findings through which the respondents report that monitoring and evaluation processes are clearly outlined, respondents have the expertise to implement monitoring and evaluation, monitoring and evaluation as a critical management tool complements other functions, improves service delivery, enforces accountability, promotes transparency, strengthens internal management processes and improves capacity. Adherence by the department to its financial reporting obligations to oversight institutions using the prescribed procedures is helpful and does not distract it from achieving its objectives. Contrarily, the findings also reveal areas of ineffective implementation, namely, majorities of respondents are not regularly trained on monitoring and evaluation, there is lack of accountability, support and failure by senior managers to prioritise monitoring and evaluation, the monitoring and evaluation directorate is inappropriately located and insufficiently resourced, progress in the implementation of the recommendations that are made in quarterly performance reports is not tracked and there is lack of evidence to support achieved targets. / Centre for Public Administration and Management / M.P.A. (Public Administration and Management)

Doctorat en sciences sociales, politiques et économiques / info:eu-repo/semantics/nonPublished

The study was undertaken to establish the role that should be played by the Department of Agriculture, Forestry and Fisheries (DAFF) to strengthen existing second-tier agricultural cooperatives in South Africa to ensure that they are able to provide support services to member cooperatives. Ten existing second-tier agricultural cooperatives in the Zululand district of the province of Kwazulu Natal took part in the study. The results indicate that although these cooperatives understand the services to provide, they lack capacity mainly due to lack of the necessary infrastructure, finance and skills. The study recommends that DAFF should recognise the significance of this tier of cooperatives and provide direct and focused support. DAFF should develop a Cooperative Development Strategy for the sector that clearly articulates how it is going to support this level of cooperatives. Among others DAFF should also provide initial infrastructure to these cooperatives and facilitate private-public-partnership initiatives. / Public Administration and Management / M. Tech. (Public Management)

PhD (Agricultural Economics) / Department of Agricultural Economics and Agribusiness / The high attrition rate of cooperatives in Limpopo Province is a great concern considering that cooperatives globally and in South Africa have been esteemed to play a role in rural development and poverty reduction. The problem of attrition is a threat in the development of our societies. In response to this, the study investigated the formation of cooperatives, influence of social, human capital and household characteristics. The study also assessed the differences that can be used to discriminate cooperatives earning monthly income and those without a monthly income. The main aim of the study was to develop a framework that could be used to create sustainable cooperatives in the future in Limpopo Province. The study was conducted in five districts of Limpopo Province namely: Sekhukhune, Waterberg, Mopani, Capricorn and Vhembe. Data was collected using a structured questionnaire from 146 cooperatives. Key respondents were cooperatives leaders. Focus group data from Mopani district cooperatives was used to provide a background to the researcher in the development of the framework. Focus group discussion information was only used by the researcher in order to understand the cooperative member’s views. Purposive sampling was used to select a sample of 146 cooperatives due to the availability and accessibility of the cooperatives. SPSS analytical tool was used to analyse the data. Models used in the study were Binary logistic, Multinomial and Discriminant analysis. The findings of the study revealed that household characteristics such as gender, member affiliation affected the formation of legitimate cooperatives. Social capital indicators such as access to information and benefits derived by relatives encouraged the need for funding. However human capital indicators were found not to influence the need for external funding. The study also discovered that there were major differences between cooperatives earning a monthly income and those without the income. There were various benefits derived from the cooperatives by members. The study concluded that for cooperatives to be sustainable, focus should be on human capital, extension services and improvement of the level of education. The notion is that an informed, trained and educated cooperative society is the future.

The agricultural sector plays an important role in the South African economy through job creation and earning foreign exchange. The role of agricultural co-operatives increased substantially over the last few decades. The research focuses firstly on the identification of derivative instruments in the market and their applicability to mitigate financial risks co-operatives experience. Secondly, research is conducted about the extent to which co-operatives use these derivatives to hedge financial risks. The research shows that most co-operatives are exposed to financial risks through different activities. It is, however, evident that although the derivative instruments are available, not all co-operatives make use of these instruments. Recommendations for further research include the development of a risk management framework and determining the different economic factors that have an influence on the use of derivatives by South African agricultural co-operatives. / Business Management / M.Comm.

The relationship between the role of leadership and agricultural cooperatives performance were examined in East, West and South Ethiopia. The hypotheses were tested in a survey of N=162 leaders, managers and directors of primary coffee farmers cooperatives. The results of the test confirmed the overall positive relationship between the role of leadership and agricultural cooperatives performances. This study highlights and gives general view into how the role of leadership can significantly contribute to cooperatives business performances. The results and findings of the analysis indicated that leaders who are most effective at business performances are those who utilize leadership behavior and the skills and trainings required in the cooperatives business organizations. The study encourages further and comprehensive research into the interconnection between the role of leadership, education and skills of leaders, financial management knowledge and decision making competency. The study followed cross-sectional survey design, and employed evaluative quantitative analysis method. The analysis was based on primary data generated through a structured questionnaire distributed to the respondents. Responses to research statements were scaled and converted to analyze the quantitative data of dependent and independent variables based on the role of leadership and associated performance variables. The findings from correlation and multiple regressions in testing the hypotheses showed that there are significant and positive relationship between each of the five independent variables and a dependent variable of business performances. The study concluded that leadership role was very important in cooperatives business performance and, therefore, recommended that leaders of coffee farmers’ cooperatives organizations that wanted to improve the efficiency and effectiveness of their businesses performances need to implement the suggestions stated in the recommendation part of this study about the leadership roles. / Business Management / DBL

The relationship between the role of leadership and agricultural cooperatives performance were examined in East, West and South Ethiopia. The hypotheses were tested in a survey of N=162 leaders, managers and directors of primary coffee farmers cooperatives. The results of the test confirmed the overall positive relationship between the role of leadership and agricultural cooperatives performances. This study highlights and gives general view into how the role of leadership can significantly contribute to cooperatives business performances. The results and findings of the analysis indicated that leaders who are most effective at business performances are those who utilize leadership behavior and the skills and trainings required in the cooperatives business organizations. The study encourages further and comprehensive research into the interconnection between the role of leadership, education and skills of leaders, financial management knowledge and decision making competency. The study followed cross-sectional survey design, and employed evaluative quantitative analysis method. The analysis was based on primary data generated through a structured questionnaire distributed to the respondents. Responses to research statements were scaled and converted to analyze the quantitative data of dependent and independent variables based on the role of leadership and associated performance variables. The findings from correlation and multiple regressions in testing the hypotheses showed that there are significant and positive relationship between each of the five independent variables and a dependent variable of business performances. The study concluded that leadership role was very important in cooperatives business performance and, therefore, recommended that leaders of coffee farmers’ cooperatives organizations that wanted to improve the efficiency and effectiveness of their businesses performances need to implement the suggestions stated in the recommendation part of this study about the leadership roles. / Business Management / DBL

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.