[From the Introduction] The argument by which it is shown that, under a system of open competition, prices are determined in a way which secures to consumers a maximum aggregate of satisfaction consonant with the relative security of the means of production is the familiar material of many treatises on economics, and does not need to be repeated here. In Economics (as distinct from Politics) this argument provided in a simple form the logical justification for the advocacy of laissez faire in State policy during the early 19th century even though "it was the actual success of private enterprise and the inefficiency and corruption of Government control that caused laissez faire to be an acceptable policy". No-one, of course, contended that pure competition did in fact characterize the economic relations of the time. Quite the reverse. It was argued that if the hindrances to competition were removed, society as a whole would reap the benefits indicated by the theory.

Thesis (MAgricAdmin)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: South Africa is experiencing major political, economic and social changes and in its policy orientation towards the event of globalisation. These changes are intended for the empowerment of those previously disadvantaged and for the levelling of the playing field for future equality of opportunities. In empowering these individuals it is recognised that agriculture is one of the important sectors that would serve as a vehicle for the development of the country. It is the main source of economic growth and the bedrock of economic development. Agriculture depends strongly on land, which is also an asset that can be used to generate income. For this reason land reform in the form of grants is one of the important tools employed in South Africa to redistribute land to the disadvantaged in order to enable them to improve their income and also to develop rural areas. As this programme is based on a market-assisted approach, its success depends on land markets that function well and are stable enough to carry it. The objective of this study was to determine the state of land redistribution and to analyse the land market in the Boland region of the Western Cape province. The effectiveness of land redistribution was analysed with regard to the number of transactions that took place in the years 1998, 1999 and 2000 in terms of citizenship, race, mode of land acquisition amongst the disadvantaged (government grants, private acquisitions and inheritances), quantity and quality factors. The findings were discussed in terms of their implications for the success of the programme and their influence of the land market. Finally recommendations were made for potential improvements as well as for further research. It was found that land redistribution by means of government grants was rather slow and most of the transactions took place through private purchases, mostly through mortgage loans provided by the Land Bank of South Africa. Although private transactions redistributed more wealth measured in terms of size pf land, the accompanying land was less superior using price per hectare as a proxy for quality compared to land purchased with the assistance of the government. Transactions for the latter were mainly through joint ventures with current owners. The study also revealed that the land market in the Boland is one of the major obstacles to the speedy transfer of land not because of the foreign investment, but due to the nature of the sectors. The two main agricultural sectors are viticulture and deciduous fruit which have experience high growth in income and export. The analysis conducted established that there was no significant difference between properties bought by foreigners, white and Black South Africans. Future trends in land prices could not be predicted but it is expected that agricultural land prices will be well above the capitalisation value of future profits arising from the level of foreign investment as well as economic gain. Based on the finding the areas to be emphasised by the land reform programme in this region are joint venturing and the promotion of subsidies on mortgage loans as well as extending the government's role in the land market. Increased government spending and involvement of the private sector, including financial institutions and established commercial farmers, are some of the things to be encouraged to facilitate the process and ultimately to overcome poverty. The sole reliance on the current regional land market seems incapable of effectively and speedily redistributing land to beneficiaries, whereby equality can be achieved in the long run. However, if all the shortcomings of the land market are recognised and a new policy is adopted, land reform in the Boland and in South Africa will in the future be more likely to promote increased access to land, resulting in higher productivity, growth and a globally competitive agriculture. / AFRIKAANSE OPSOMMING: Suid-Afrika ondervind tans grootskaalse politieke, ekonomiese en sosiale veranderinge en so ook in beleidsoriëntering na aanleiding van globalisasie. Hierdie veranderinge het ten doel om voorheen benadeeldes te bemagtig en om die speelveld gelyk te maak met betrekking tot toekomstige geleenthede. Tydens die bemagtiging van hierdie individue word landbou erken as een van die belangrikste sektore wat kan dien as 'n voertuig vir die ontwikkeling van die land. Landbou is die hoofbron van ekonomiese groei en die hoeksteen van ekonomiese ontwikkeling. Alhoewel landbou grootliks afhanklik is van grond, is grond 'n bate wat gebruik kan word om inkomste te genereer. Om hierdie rede is grondhervorming in die vorm van 'n toekenning of subsidie een van die belangrikste meganismes wat in Suid Afrika gebruik word om grond aan die voorheen benadeeldes te herverdeel. Die doel van grondhervorming is om die voorheen benadeeldes in staat te stelom hul inkomste te verbeter en ook om landelike gebiede te ontwikkel. Hierdie program is gebaseer op 'n markondersteunde benadering en daarom hang die sukses af van die grondmark wat goed funksioneer en stabiel is. Die doelwit van hierdie studie was om die stand van grondhervorming te bepaal en om die grondmark in die Boland-streek van Wes-Kaapse provinsie te ontleed. Die effektiwiteit van grondherverdeling is ontleed met betrekking tot die getal transaksies wat plaasgevind het in die jare 1998, 1999 en 2000 in terme van burgerskap, ras, metode van grond aanskaffing tussen die minder bevoorregte (staatstoekennings, private aanskaffing en erflatings), hoeveelheid en kwaliteit. Die bevindings is bespreek in terme van hul implikasies vir die sukses van die program en hul invloed op die grondmark. Finale aanbevelings is gemaak vir potensiële verbeterings sowel as vir verdere navorsing. Daar is bevind dat grondherverdeling by wyse van staatstoekennings baie stadig was en meeste van die transaksies was deur private aankope, meestal deur verbandlenings verskaf deur die Landbank. Alhoewel privaat grondverkope grootliks rykdom herverdeel, is die waarde in terme van prys per hektaar minder in vergelyking met die waarde van grond aangekoop met die hulp van die staat. Wingerbou- en tuinbouprodukte het die hoogste groei in inkomste en uitvoer ondervind. Dit word egter verwag dat grondpryse ver bo die kapitalisasiewaarde van toekomstige winste sal styg voortspruitend uit onder andere die vlak van buitelandse investerings. Die areas wat beklemtoon moet word deur die grondhervormingsprogram in die streek, is gesamentlike ondernemings en die bevordering van subsidies op verbandlenings. Verhoogde staatsbesteding en betrokkenheid van die private sektor, insluitende finansiële instellings en gevestigde kommersiële boere, moet aangemoedig word om die proses te fasiliteer en om uiteindelik armoede te oorkom. Die huidige streeks-grondmark blyk onbevoeg te wees om herverdeling van grond aan begunstigdes effektief en spoedig op die lange duur te laat geskied. Indien die tekortkominge van die grondmark erken word en 'n nuwe beleid aanvaar word, sal grondhervorming in die Boland en in Suid-Afrika in die toekoms meer geneig wees om toegang tot grond te bevorder. Dit sal aanleiding gee tot hoër produktiwiteit, groei en 'n globaal mededingende landbou.

Dissertation (PhD (Agric))--Stellenbosch University, 2001. / ENGLISH ABSTRACT: The objective of this dissertation was to investigate the structural imbalances of the wheat industry of the Western Cape Province and, with due recognition of a changing environment, to develop an effective strategy for the industry. It was found that the origins of the structural imbalances could be detected in the interaction between policy, technological and demand factors and is not unique to the specific industry. The farm problem provides an explanation for the instability of and downward pressure on wheat prices as well as the sluggish adaptation to environmental change experienced in the wheat industry. Internationally similar problems led to a whole range of policy measures. Relatively unique to South African agriculture, but not only to the Western Cape wheat industry, is the circumstances that gave rise to the current dual structure of the domestic agricultural sector. The origins of these circumstances could be traced back to the Dutch settlement of the Cape in 1652 and the resulting measures was later upheld under British rule. After the commercialisation of the local agricultural sector following the discovery of diamonds in South Africa, certain measures were lobbied for at the end of the 19th Century to protect white farmers. These measures were expanded in the 20th Century and gave rise to the particular duality along ethnic lines of the South African agricultural sector. If it is accepted that the structural problems of the wheat industry are the result of political, policy, technological and demand factors, the question of the potential future role of the sector, and more specifically the wheat industry, can be asked. It was established that agriculture is a natural catalyst for economic development through the provision of food, foreign exchange, manpower, and capital formation as well as a market for industrial produce. Whereas the potential exists, agriculture has not yet fulfilled this role in Southern Africa due to inconsistent domestic policy, adverse trade regimes, inappropriate technology and problems encountered in the management of development. This potential role of agriculture has been quantified for the Western Cape Province. In the development of a strategy for an industry it is imperative to evaluate the future economic and social environment. It was verified that in the next phase of economic development, towards information societies, agriculture would still fulfil the functions previously mentioned. However, a new and more esoteric role relating to identity could be added to this list in an information society. Given the important role of agriculture as described in the previous section, intuition would lead one to expect that government would play an important role in alleviating the structural problems of the Western Cape wheat industry. However, contrary to this intuitive expectation it was found that, in alleviating the problems of the Western Cape wheat industry, government intervention will be largely limited to creating a favourable enabling environment. In getting to this conclusion the theory of welfare economics, public choice and politician - voter interaction were explored. The traditional wisdom has it that in searching for a Pareto-optimal state, or at least a second-best solution, pressure group activities may play an important role. This is seen as important due to the difficulties, as indicated by Arrow's impossibility theorem, in transforming individual preferences into political preference functions. However, numerous examples have shown that pressure group activities may only playa marginal role in influencing the final outcome. The underlying structural characteristics of the national and provincial economies may be a more important determinant. This became more certain as the way politicians perceived agriculture before and after the 1994 political transition was analysed. It follows that a strategy for the wheat industry of the Western Cape will take the global, social, policy, natural and consumer environment into account and both the strategy and the industry will have to be self-reliant. It was argued that a solution would be found in changing the slope (elasticity) of the demand and supply functions for agricultural produce. With the aid of a spatial model developed the impact of the different elements of the strategy on the profitability of wheat production in the Western Cape was evaluated. This model took into consideration the yield potential for wheat, the gross and net margin of wheat production, spatial dispersion, transport costs and also made provision for different intermediate markets. It was found that each of the components of the strategy would substantially contribute to a more profitable wheat industry for the Western Cape. The combined effect of the strategy would result in a 97 percent decrease in the area where wheat production is unprofitable. Profitable production of wheat would be possible on 99,3 percent of the total area that is suitable for rainfed wheat production. The production of wheat would be highly profitable at a margin of more than R200 per ton on more than 1,1 million hectares (77,1% of the total area). It is concluded that, while taking the global, social, policy, natural and consumer environment into account and without relying on government, a strategy could be developed that will rectify the structural problems of the Western Cape wheat industry. / AFRIKAANSE OPSOMMING: Die doel van hierdie proefskrif was om die strukturele wanbalanse van die koringbedryf in die Wes- Kaap Provinsie te ondersoek en, om met erkenning aan 'n veranderde omgewing, 'n effektiewe strategie vir die bedryf te ontwikkel. Dit is bevind dat die oorsprong van die strukturele wanbalanse uit die interaksie tussen beleid-, tegnologiese- en vraagfaktore spruit en dat die wanbalanse nie uniek is tot die bedryf nie. 'n Verklaring vir die onstabiliteit van- en afwaartse druk op koringpryse, sowel as die trae aanpassings van die bedryf by omgewingsveranderings, word deur die plaasprobleem gebied. Soortgelyke probleme het globaal tot 'n verskeidenheid van beleidmaatreëls aanleiding gegee. Wat wel uniek is tot die Suid-Afrikaanse landbou, maar nie tot die plaaslike koringbedryf nie, is die omstandighede wat tot die huidige dualistiese struktuur van die landbou sektor aanleiding gegee het. Die oorsprong van die omstandighede kan teruggespoor word tot die Hollandse besetting van die Kaap in 1652 en die gepaardgaande maatreëls wat ook onder Britse bewind in stand gehou is. Na die kommersialisering van die plaaslike landbou sektor, wat op die ontdekking van diamante in Suid- Afrika gevolg het, is bepaalde maatreëls aan die einde van die 19de eeu deur drukgroepe beding ten einde blanke boere te beskerm. Hierdie maatreëls is in die 20ste eeu uitgebrei en het die unieke dualiteit op etniese gronde van die Suid-Afrikaanse landbou sektor tot gevolg gehad. Met aanvaarding daarvan dat die strukturele wanbalanse van die koringbedryf die resultaat is van politieke, beleid, tegnologiese en vraag faktore, kan dit gevra word of die sektor, en meer spesifiek die koringbedryf, nog 'n rol te speel het. Dit is gevind dat landbou 'n natuurlike katalisator vir ontwikkeling kan wees deur die verskaffing van voedsel, buitelandse valuta, mannekrag, kapitaal vorming en 'n mark vir industriële goedere. Ten spyte van die bestaande potensiaal kon landbou nog nie hierdie rol in Suidelike Afrika vervul nie, hoofsaaklik as gevolg van inkonsekwente binnelandse beleid, onvriendelike handelsomgewings, nie-geskikte tegnologie en ontwikkelingsbestuur probleme. Die potensiële rol van landbou in die Wes-Kaap Provinsie is gekwantifiseer. Dit is belangrik om tydens die ontwikkeling van 'n strategie vir 'n bedryf ook die toekomstige ekonomiese en sosiale omgewing in aanmerking te neem. Dit is bevestig dat in die volgende fase van ekonomiese ontwikkeling, dié van 'n inligtings gemeenskap, landbou steeds die voorgenoemde funksies sal vervul. 'n Nuwe en meer esoteriese funksie, gefokus op identiteit, kan egter in 'n inligtingsgemeenskap tot die lys toegevoeg word. Gegewe hierdie belangrike rol van landbou kan intuïtief verwag word dat die owerheid bereid sal wees om 'n belangrike bydrae te maak tot die verligting van die strukturele probleme van die Wes- Kaapse koringbedryf. Teenstrydig met hierdie intuïtiewe verwagting is egter bevind dat owerheids betrokkenheid hoofsaaklik beperk sal wees tot die skepping van 'n gunstige en bemagtigende omgewing. Ten einde hierdie gevolgtrekking te bereik is welfaart ekonomie, publieke keuse en politici - kieser interaksie teorie bestudeer. Volgens tradisionele denke kan drukgroep aktiwiteite 'n belangrike rol speel in die soeke na 'n Pareto-optimale staat, of ten minste in die soeke na 'n tweede-beste oplossing. Weens probleme in die transformasie van individuele voorkeure na politieke voorkeur funksies, soos beskryf deur die onmoontlikheidsteorie van Arrow, word hierdie aktiwiteite as belangrik geag. Veelvuldige voorbeelde dui egter daarop dat drukgroep aktiwiteite slegs 'n marginale rol kan speel in die beïnvloeding van finale uitkomste. Dit blyk dat onderliggende eienskappe van die nasionale en provinsiale ekonomië meer bepalende faktore kan wees. Hierdie vermoede is bevestig namate die politieke persepsie van die landbou voor en na die 1994 politieke transformasie geanaliseer is. Uit die voorafgaande is dit duidelik dat 'n strategie vir die koringbedryf van die Wes-Kaap die internasionale, sosiale, politieke, natuurlike en verbruikers omgewing in aanmerking sal moet neem. Dit is ook duidelik dat beide die strategie en die bedryf self onderhoudend sal moet wees. Dit word aangevoer dat 'n oplossing gevind kan word indien die helling (elastisiteit) van die vraag en aanbod funksies van landbouprodukte aangepas kan word. Met behulp van 'n ruimtelike model wat ontwikkel is, is die impak van die verskillende elemente van die strategie op die winsgewendheid van koringproduksie in die Wes-Kaap geëvalueer. Hierdie model het onder meer die opbrengs potensiaal van koring, die bruto en netto marge van koringproduksie, ruimtelike verspreiding, vervoerkoste en verskillende intermediêre markte in aanmerking geneem. Dit is bevind dat elk van die elemente van die strategie beduidend tot winsgewende koringproduksie in die Wes-Kaap kan bydra. Die strategie kan daartoe lei dat die oppervlakte met nie-winsgewende koringproduksie met 97 persent sal afneem. Koring kan winsgewend verbou word op 99,3 persent van die area geskik vir droëland produksie. Terselfdertyd sal koring, teen 'n marge van R200 per ton, hoogs winsgewend verbou kan word op nagenoeg 1,1 miljoen hektaar (77,1 persent van die totale area). Ten slotte blyk dit dat, met inagneming van die internasionale, sosiale, politieke, natuurlike en verbruikers omgewing, en sonder dat op owerheids ondersteuning staatgemaak word, 'n strategie ontwikkel kon word wat die strukturele wanbalanse van die Wes-Kaapse koringbedryf kan oplos.

The communal (former homeland) areas of South Africa are characterised by high concentrations of black people many of whom live in extreme poverty. In recent years this has been exacerbated by the collapse of state-run farmer assistance schemes, which has resulted in very low levels of agricultural production in these areas. The new South African government has proposed the revitalisation of small-scale agriculture as an important mechanism for uplifting rural livelihoods here. This research was undertaken in the former homeland of Ciskei, in what is now central Eastern Cape Province. Here agricultural decline has resulted in large areas of land designated for crop production lying fallow in the long term. Livestock production offers greater livelihood potential in this region, and it was therefore posited that this essentially abandoned cropland might be better utilised as a permanent grazing resource for livestock, particularly cattle. The research sought to characterise current levels and patterns of utilisation of arable land by livestock and how this land might be more effectively managed as a grazing resource and thereby improve levels of livestock production. Enormous variation was found in the contribution made by arable land allocations to cattle production systems in communal areas of this region. From a social perspective grazing management systems were found to depend largely on the availability of grazing resources. Where these were plentiful, control was exercised at a communal level although this tended to devolve to the individual level as grazing areas became overutilised. Considerable variation was also evident at the ecological level. Pasture quantity and quality was largely dependent on local ecotopes and land management strategies. This in turn exerted a strong influence on cattle foraging behaviour and the extent to which they could satisfy their nutritional intake requirements and thereby maintain bogy condition. Recommendations are advanced for improving cattle production systems, which take adequate account of the social and ecological heterogeneity of the central Eastern Cape region.

This study explores the impact of post-apartheid agricultural changes on citrus farmers in the Peddie area. The case study focused on the Craighead Citrus Farm at Kwatho as well as the Naudeshoek Citrus Farm, Ripplemead Citrus Farm and Siyamila Citrus Farm in the Balteni area. The study considered the effect of agricultural changes on citrus production, productivity of the farms in question, as well as the impact on poverty alleviation in Peddie District. In the study, the challenges encountered by both farmers and communities due to the agricultural changes in the new democratic dispensation were also considered. The study further considered the role played by the Department of Agriculture and Ngqushwa Local Municipality in assisting these farmers to increase citrus production in order to create employment opportunities. To achieve these objectives, a review of literature and collection of evidence in the form of interviews, and observations were conducted in the research areas. The research findings indicated that the Craighead Citrus Farms is state owned land, which belonged to Ulimocor, a parastatal under the former homeland government (Ciskei). This farm is no longer operational and is abandoned. During the period of this study the Naudeshoek Citrus Farm, Ripplemead Citrus Farm and Siyamila Citrus Farm were operational and progressing. Citrus farming in this area has potential to boost the economy, which would only be possible with the establishment of partnerships between the emerging farmers, government, commercial farmers and Ngqushwa Local Municipality.

Thesis (MCom)--Stellenbosch, 2000. / ENGLISH ABSTRACT: In South Africa the racial and agricultural policies aimed at national food self-sufficiency created an agricultural structure dominated by large, mechanised farms that are owned and operated by a small number of individuals or companies. New agricultural policy should therefore focus more on peasant farming in the subsistence sector in order to promote the development of sustainable small-scale farming units. The liberalisation of agricultural markets resulted in a fundamental change of political and economic framework conditions for the commercial agricultural sector. Failure to adapt has led to significant inefficiency and financial problems in commercial agriculture. This thesis initially focuses on the general question of the efficient organisational form of agriculture. With reference to the German agricultural structure, family farming will be identified as a superior organisational form and the utility optimal factor allocation of this organisational form is explained with the aid of the agricultural household theory. South Africa's agricultural structure is marked by extreme dualism, which was caused by political intervention in the labour and capital markets. The current liberal agricultural policy framework makes commercial agriculture in particular seem inefficient and gives reason to question the current organisational form of South African agriculture. Besides the basic socio-political objectives, the growth objective is one of the most important factors in the development of subsistence agriculture. The contribution of agriculture is not restricted to food production. In fact, the factor contribution is important in achieving economic growth, especially in developing countries. Future developments in the South African agricultural sector will be strongly influenced by the international market. In this respect South Africa, Germany and many other Western industrialised countries are undergoing a similar transformation process that corresponds with the spatial agricultural land use in location theory. Location rent implies differing costs for the use of land, and this is the case for the development of different agricultural systems depending on their distance from the market. The family farming model can be considered as having failed in the South African economy, except in some niche markets. The number of family farms is in fact growing, but there is also a tendency towards more large-scale industrialised agricultural units. The subsistence sector will remain dominated by family farming in the future, although the agricultural household represents a kind of survival institution in these areas. Despite all problems in the subsistence sector, there is no alternative to family farming, and development of subsistence farming is only foreseeable within the framework of family farming. Subsistence farming as a social security system could, however, decline in importance in the future. / AFRIKAANSE OPSOMMING: In Suid-Afrika het die klem op voedselselfversorgenheid, wat voortgevloei het uit rasse- en landbou-beleidsrigtings, veroorsaak dat die landbou struktureel gedomineer is deur groot, hoogs gemeganiseerde plase wat besit en bedryf is deur 'n klein aantal individue of maatskappye. Die fokus van landboubeleid in die toekoms behoort dus te wees op kleinboere om te verseker dat 'n volhoubare struktuur van klein plase daargestel word. Hierdie verandering moet gepaard gaan met die proses van libelarisering van die landbousektor, wat fundamentele veranderings in die bedryomgewing van die sektor teweeg gebring het. Tot op datum het die gebrek aan vordering hiermee verskeie probleme in die kommersiële sektor tot gevolg gehad. Hierdie studie begin met die algemene vraag oor die struktuur van 'n doeltreffende landboustelsel, dus die doeltreffende organisasievorm. Die ondervinding van die Duitse landbou word gebruik om te wys op die relatiewe doeltreffendheid van die familieboerdery as kern vorm. Die teorie van die huishouding word gebruik om om te wys op die beter vermoë van familieboerdery om hulpbronne optimaal te allokeer. Politieke inmenging in die kapitaal en arbeidsmarkte het aanleiding gegee tot 'n hoë mate van dualisme in die Suid-Afrikaanse landbousektor. Die bestaande liberale beleid het ook verskeie ondoeltreffendhede in die kommersiële sektor ontbloot, en dus is daar 'n groter bevraagtekening van die huidige organisasievorms in die sektor. Die doelwit van groei blyeen van die belangrikste doelwitte in die landbou, ten spyte van die heersende klem op basiese sosio-politieke doelstellings. Die bydrae van die landbou strek verder as bloot voedselverskaffing, en sluit ook in verskeie ander faktorbydraes, veral in ontwikkelende lande. Verdere ontwikkelings in die Suid-Afrikaanse landbou sal sterk beinvloed word deur veranderings in die wêreldmark. In hierdie opsig is Suid-Afrika besig om dieselfde soort van transformasie te ondergaan as lande soos Duitsland en ander van die nywerheidslande. Die sterkste invloed sal na verwagting gevoel word in terme van die ligging van landbouproducksie. Die implikasie is dat afstand van die mark al hoe meer belangrik gaan word in besluite oor die optimale organisasievorm. In hierdie opsig het Suid-Afrika 'n agterstand as gevolg van die gebrek aan aandag vir die ontwikkeling van volhoubare familieboerderye. Ten spyte hiervan groei die aantal familiboerderye teselfdertyd as die groei in die aantal groot korporatiewe plase, hoofsaaklik as gevolg van die oor-aanbod van arbeid. Die verwagting is dat familiboerdery sal bly domineer in die bestaanssektor, al het dit meer die aard van 'n laaste uitweg aangeneem vir baie gesinne. Ten spyte van sy probleme, is daar geen alternatiewe organisasievorm in die ontwikkelende landbou wat ook kan bydra tot die sukses van die sektor nie. Die verwagting is egter ook dat familieboerdery as sosiale verskynsel sal afneem in belangrikheid.

Thesis (MAgricAdmin)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: Agriculture is heavily subsidised and protected in most of the major industrial countries. Some of the effects are obvious through the heavy costs imposed on national budgets. Other effects, such as those on consumers or on overall economic efficiency, are less obvious but are nonetheless extremely important. In South Africa there has never been an attempt to calculate total government intervention in agriculture. However, this changed at the time of the negotiations for the Uruguay Round of multilateral trade negotiations under the auspices of the GATT, and the greater importance of the consumer in the designing of agricultural policies. The aim of this study is to determine whether the production of wheat in the Western Cape is economically optimal under the current policy environment. The study investigates if there was a comparative advantage in the production of wheat as of April 1999. The technique used to calculate the various indicators of comparative advantage is the Policy Analysis Matrix. This technique is used to identify the effects of policy measures on the social profitability of wheat production. The analysis used data from eight areas, and seventeen varying enterprise budgets were constructed in order to compile a representative picture of the industry's condition. The results of the analysis indicate that Western Cape wheat producers do not have a strong comparative advantage in the production of wheat for the selected areas. The reasoning behind this is complex, but is primarily a result of high levels of input use. Input prices are inflated by policy distortions in input markets, partly because of tariffs on imported inputs. The net effect of the total policy environment also had a negative effect on producers, in the sense that sub-normal profits were achieved. The future of the Western Cape and South African wheat farmer is uncertain. What is certain is that, if the wheat farmer in South Africa does not take immediate and swift action, directed at improving efficiency in current management and production techniques, and implementing some form of crop diversification, farm debt will ultimately be the demise of the farmer. As interest rates rapidly increase, and producer prices remain constant or decrease, the farmer begins to farm more for the bank than for private remuneration. / AFRIKAANSE OPSOMMING: In die meeste groot industriele lande word landbou grootliks gesubsidieer en beskerm. Sommige van die effekte word weerspieël in hoë kostes in die nasionale begroting. Ander effekte soos die op verbruikers is minder vanselfsprekend, maar steeds baie belangrik. Voorheen is daar geen poging aangewend om die totale owerheidsinmenging in landbou in Suid-Afrika te bereken nie. Dit het egter verander met die onderhandelinge rondom die Uruguay Ronde van die AOTH, en die groter belangrikheid van die verbruiker in die ontwerp van landboubeleid. Die doel van hierdie studie is om te bepaal of dit ekonomies optimaal is om koring in die Wes-Kaap te produseer onder die huidige beleidsomgewing. Met ander woorde, die studie poog om te bepaal wat die vergelykende voordeel, indien enige, is by koringproduksie. Die tegniek wat gebruik is om die verskillende indikatore van vergelykende voordeel te bereken, is die Beleidsanalise Matriks of PAM. Die tegniek word gebruik om die effek van die beleid met betrekking tot koringproduksie te identifiseer. Agt produksiestreke in die Wes-Kaap is ontleed vir die doeleindes van hierdie analise. Sewentien verskillende bedryfsvertakkingsbegrotings is hiervan afgelei om sodoende 'n goeie verteenwoordigende beeld van die bedryfstoestande te kry. Die resultate van die analise toon aan dat koringproduksie in die Weskaap nie 'n sterk vergelykende voordeel het nie. Die rede hiervoor is kompleks, maar die hoë vlak van inset gebruik kan beskou word as hoofrede. Hoër insetpryse, na aanleiding van die beleidsversteuringe in insetmarkte, is deels die gevolg van invoerbeskerming in die vorm van tariewe op ingevoerde insette. Die netto effek van die totale beleidsomgewing het ook 'n negatiewe effek op die produsente gehad, veral in die sin dat subnormale winste behaal is. Die toekoms van koringboere in die Wes-Kaap en Suid-Afrika is onseker. Wat wel seker is, is dat as koringboere in Suid-Afrika nie daadwerklike en vinnige hul bestuurs- en produksieeffektiwiteit verbeter me, sal skuld toeneem en sal dit koeringboerdery se einde beteken. Soos rentekoerse vinniger toeneem en die produsenteprys konstant bly of afneem, sal boere meer aan skuld afbetaal as wat hulle uit koringboerdery kan verdien.

Thesis (MBA) -- Stellenbosch University, 2011. / Extensive literature exists on the challenges that hinder the growth and development of small-scale farmers in agriculture. These small-scale farmers’ challenges can be broadly classified into financial, technical and market challenges. Despite the awareness and the debate that favours progressing small-scale farmers from subsistence agriculture to commercial agriculture, financiers consider this group of farmers as of high risk and low returns. The emergence of contract farming as a mechanism to integrate small-scale farmers with agribusiness firms, agro-industrial companies, supermarket chains, and processors of agricultural produce has rescued the small-scale farmers from going into oblivion. Contract farming promises benefits for both the farmers and the contract sponsors. In the face of the benefits that contract farming hold, the concept has been critiqued as being an exploitative mechanism that contract sponsors use on the growers. This research evaluates the contract farming arrangement between Gledhow Sugar Company and Mansomini Farmers’ Cooperative. The study assesses how the scheme plays a part in the provision of access to finance, technical support and a guaranteed market access for the small sugarcane farmers. It explores how Gledhow Sugar Company’s structures manage to reduce the associated risk in providing finance to the small-scale farmers. The analysis of findings from the interviews confirms that the structure provides the small-scale sugarcane farmers with finance, technical support and a guaranteed market. However, for Gledhow Sugar Company to continuously achieve its aim and simultaneously develop the farmers there is a need for Gledhow Sugar Company to provide the farmers with more clarity on their role in the arrangement and to make the farmers embrace the long-term vision of the contractual arrangement.

In this study, Local Economic Development (LED) is defined as an outcome of processes aimed at building up the capacity of local areas for sustainable economic development. The study assesses whether LED interventions, especially agricultural programmes, improve the livelihoods of poor communities in the Amathole District Municipality. Data was collected by use of both qualitative and quantitative research methods through interviews and questionnaires, respectively. Probability and non-probability sampling techniques were used to identify the research sample from the target population. These were further broken down into stratified, purposive and snowball sampling to enable the researcher to select specific municipalities, councillors, officials and stakeholders who participated in the study. Budgetary constraints, staff shortages and lack of required skills/ expertise were identified as the main challenges facing the district. The latter makes it difficult for the municipality to effectively implement sound LED programmes. Consequently, LED benefits are minimal. It is, therefore, recommendable for the municipality to seek other means of generating and boosting their financial viability through partnerships and private sector investments. This in turn will generate revenue for the municipality and ensure economic development in the district, thereby making a meaningful contribution towards the realization of a goal for “a better life for all”.

New policy initiatives that followed the 1994 democratic elections aim strongly on construction and development, especially in the agrarian sector. Land reform is one of the initiatives that the democratic government has implemented post 1994 to enable the previously marginalised and disposed individuals and families to own land. The aim of the land reform was not only to provide settlement beneficiaries, but to provide post settlement support to them and enable them to live a better life. However, most of the beneficiaries who acquired farms through the land reform programs lack practical experience in commercial agricultural production. In light of the above, the agricultural mentorship programme was implemented to offer a ray of sunshine to smallholder and emerging farmers. However, it is quite evident that although the agricultural mentorship program was implemented, the Kat river valley emerging citrus farmers are still facing challenges such as limited production capacity; limited access to financial capital; limited access to production equipment; and limited post-harvest support. This study aims to review the agriculture mentorship programme of the Department of Agrarian Reform and Rural Development (DRDAR), with a specific focus on citrus at Kat River Valley. Using data drawn from a sample of nine (9) mentees, two (2) mentors and one official from DARDAR who were personally visited and interviewed, the thesis presents the results of an assessment of the program’s outcomes for participant’s experiences and perceptions in order to strengthen the programme. A review of related literature on land and agriculture reform, agricultural policies, emerging farmers and mentorship has been presented. The study employed a qualitative approach for in-depth understanding and verification. Source documents, open-ended questionnaires and semi-structured interviews were used to collect data from participants. The study revealed that the mentorship programme has made an impact since its implementation as can be noted by the increase in production and income levels; sustainability of skills and knowledge attained from during mentorship and also job opportunities from the projects.