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.

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.

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.