In the literature there are mixed results on the link between credit and agricultural output growth. Some authors argue that credit leads to growth in agricultural output. Others view growth as one of the factors that influence credit supply, thus growth leads and credit follows. By and large, studies have not endeavoured to establish the short-run impact of agricultural credit on output. They are generally limited in establishing the long-run relationship between credit and agricultural output and thus present a research gap in this respect. This study contributes to the existing body of literature by focusing on the finance-growth nexus at sectoral level as a departure from extant literature that has focused on the macroeconomic level. Using South African data, the study investigated the causal relationship between the supply of credit and agricultural output as well as whether the two are cointegrated and have a short-run relationship. The study found that bank credit and agricultural output are cointegrated. Using the error correction model (ECM), the results showed that, in the short-run, bank credit has a negative impact on agricultural output, reflecting the uncertainties of institutional credit in South Africa. However, the ECM coefficient shows that the supply of agricultural credit rapidly adjusts to short-term disturbances, indicating that there is no room for tardiness in the agricultural sector. The absence of institutional credit will immediately be replaced by availability of other credit facilities from non-institutional sources. Conventional Granger causality tests show unidirectional causality from (1) bank credit to agricultural output growth, (2) agricultural output to capital formation, (3) agricultural output to labour, (4) capital formation to credit, and (5) capital formation to labour, and a bi-directional causality between credit and labour. Noteworthy and significant for South Africa is that for the agricultural sector, the direction of causality is from finance to growth, in other words supply-leading, whereas at the macroeconomic level, the direction of causality is from economic growth to finance, in other words, demand-leading. Applying a structural equation modelling approach to survey data of smallholder farmers, the positive relationship between bank credit and agricultural output observed from analysis of secondary data was confirmed. / Business Management / DCOM (Business Management)

This study investigates the factors affecting agricultural production of farm households in the National Regional State of Tigray, Ethiopia. The major primary sources of data for the study were farm household surveys, focus group discussions and key informant interviews. The study revealed that the annual average crop production of respondents was found to be below the standard annual food requirement recommended by the international organizations. The proportion of irrigated land to total cultivated land was only 11per cent. The proportion of irrigated land in the two districts is lower than 11.27 per cent at the regional level. The utilization of chemical fertilizers for the majority of the respondents was below the recommended standard for the region. Although the farmers were interested in using improved seeds, the supplied varieties were not based on their preferences. Extension agents were mainly engaged in activities which were not related to their professions. The farm income model result showed that landholding size (p<0.0001), possession of oxen(p<0.0001), amount of fertilizer(p=0.010), improved seeds(p=0.002), irrigation(p=0.028), soil quality(p=0.019), village distance to the district market(p=0.066), average distance of plots from the homestead (p=0.023) and crop rotation(p=0.016) were determinant variables. Farmers were engaged in off-farm activities to fulfill the cash requirements in credit constrained conditions. The laws of the region do not allow farmers to be out of their localities for more than two years and the farmerswere restricted to renting out only half of their land. This discouraged farmers from off-farm participation for fear of land confiscation. In the Probit model, the determinant variables of off-farm participation were: irrigation (p=0.001), age (p=0.007), amount of money borrowed (p=0.078), village distance to the wereda market (p=0.055), fear of land confiscation (p=0.023) and access to electricity (p=0.044). It is recommended that if farmers are to use chemical fertilizers, they should be supplied with High Yielding Varieties (HYV)and enough water through access to irrigation. Furthermore, farmers should be allowed to have long term off-farm employment to augment the farming sector. / Development Studies / D. Litt. et Phil. (Development Studies)

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 & Management / M. Tech. (Public Management)

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: Agriculture remains an important industry in South Africa. Although primary agriculture contributes only 4.5% to the Gross Domestic Product (GDP), the related agrifood industry contributes an additional 9%. Furthermore agriculture is a major provider of employment, especially in rural areas where more than 50% of the local community depends on agriculture. In general Black Economic Empowerment (BEE) is accepted as a precondition to a stable and prosperous South Africa. As a result thereof various sector plans have been negotiated and at this stage agriculture is busy with final inputs towards the Agricultural BEE plan to be finalised in December 2004. Ownership and management transformation however are difficult for most farming enterprises as most of them are small family enterprises. Therefore they will support BEE agricultural input providers to support BEE. According to the BEE Score Card it will be possible to adhere to BEE requirements without adhering to ownership and management requirements provided that good scores are obtained from the other aspects such as skills development, BEE initiatives, preferred suppliers and other. The transfer of ownership also has significant financial implications. It is estimated that R65 billion will be needed to achieve the proposed objectives of 30% agricultural land and 35% of agricultural businesses in the RSA to be transfered to black people by 2014. However, only R703 million has been spend on land restitution during the past year and only R933 million budgeted for 2004/2005. The feasibility of processed oats to be marketed as rolled oats, quick oats and muesli as such a BEE initiative has been evaluated in this study project as a joint venture between Agricol and SSK. Agricol (seed company) has cereal type oat varieties whilst Sentraal Suid-Koóperasie (Farmer Cooperative) has good grain handling infrastructures in the major oat producing areas. This project will provide both counterparts with the opportunity to integrate vertically, diversify sources of income (away from primary agriculture), empower previously disadvantaged individuals in both organisations and to meet BEE objectives. This study indicates that such a BEE initiative is feasible and offers a very good return to participants. Extremely high hygene and quality assurance standards of the processed product, the marketing thereof and market access has been identified as critical performance areas. At a dehulled percentage of 60% and price paid for oats of R1000 per ton, 600 ton of the processed oats will have to be sold annually to ensure a profit of R140 000 per annum. Subject to the budgeted figures, the project has the potential to realise a R843000 profit in year 5. The value of the new company based on the discounted cash flow method, will be R2.7 to R3.9 million. Due to the initial losses and associated negative cash flows, the value is primarily represented by the terminal value of the company after 5 years. Current shareholders require an expected return on capital of 15%. Internal rate of return for the project is 42% which is much more that the hurdle rate. The intented BEE initiative therefore definitely adds value to shareholders. Important people issues like shared vision, values, expectations, trust and commitment needs to addressed continuously to realise the potential of the project. Strong and skilled leadership will also play a decisive role as important decisions will have to be taken continuously. / AFRIKAANSE OPSOMMING: Landbou bly 'n beIangrike industrie in Suid-Afrika en alhoewel primêre-landbou slegs 4.5% van Bruto Binnelandse Produk (BBP) bydra, word die bydrae van die landbouverwante agrivoedsel industrie op 'n addisionele 9% beraam. Landbou is verder 'n belangrike werkverskaffer, veral op die platteland waar meer as die helfte van die bevolking soms van landbou afhanklik is. Daar word algemeen aanvaar dat Swart Ekonomiese Bemagtiging (SEB) 'n voorvereiste tot 'n stabiele en welvarende Suid-Afrika is. In die lig hiervan is verskeie sektor SEB handveste alreeds onderhandel en die landbousektor is tans besig om insette te lewer ten einde die landbou handves teen Desember 2004 te finaliseer. Aangesien meeste boerdery ondernemings egter klein familie ondernemings is wat moeilik eienaarskap en bestuurstransformasie kan akkomodeer, sal hulle SEB landbou inset verskaffers ondersteun om sodoende SEB te ondersteun. Volgens die SEB telkaart sal dit vir ondernemings moontlik wees om aan SEB vereistes te voldoen alhoewel daar nie noodwendig aan eienaarskap en bestuursvereistes voldoen is nie, maar wel goeie tellings op die gebied van vaardigheidsontwikkeling, SEB inisiatiewe, voorkeurvoorsiening en ander fasette behaal is. Die oordrag van eienaarskap het ook omvattende finansiële implikasies. Daar word beraam dat ongeveer R65 miljard benodig word om die voorgestelde doelwitte van 30% landbougrond en 35% van landboubesighede in die RSA teen 2014 aan swart mense oor te dra. Hierteenoor is slegs R703 miljoen die afgelope jaar aan grondhervorming bestee terwyl die begroting vir 2004/2005 R933 miljoen bedra. Die lewensvatbaarheid van verwerkte hawer wat in die vorm van gerolde hawer, hawermout en muesli bemark sal word, is as SEB inisiatief en gesamentlike projek tussen Agricol en Sentraal Suid-Koöperasie, in hierdie werkstuk ondersoek. Agricol (saadmaatskappy) beskik oor ontbytgraan tipe hawer kultivars en Sentraal Suid-Kooperasie het 'n goeie graanhanterings infrastruktuur in die hawer produksie gebiede. Die projek sal aan beide medewerkers die geleentheid bied om vertikaal te integreer, inkomste te diversifiseer (weg van primêre landbou), voorheen benadeelde individue in beide instansies te bemagtig en beide instansies help om aan SEB doelwitte te voldoen. Die studie het aangedui dat so 'n SEB inisitief wel lewensvatbaar is en goeie opbrengste aan al die deelnemers sal bied. Uitermate hoë higiëne en kwaliteitstandaarde van die verwerkte produkte tesame met die bemarking en marktoegang is as belangrike kritiese prestasie areas geïdentifiseer. Teen 'n pit tot dop verhouding van 60% en gemiddelde aankoopprys van R1000 per ton vir hawer, moet ongeveer 600 ton verwerkte hawer jaarliks verkoop word om 'n wins van R140 000 per jaar te verseker. Gegewe die begrote syfers, het die projek die potensiaal om R843 000 wins in jaar 5 te genereer. Die waarde van die nuwe maatskappy, gebasseer op die verdiskonteerde kontantvloei metode, beloop R2.7 tot R3.9 miljoen. As gevolg van die aanvanklike verliese en gepaardgaande negatiewe kontantvloeie, lê die waarde van die maatskappy egter hoofsaaklik in die eindwaarde na 5 jaar. Huidige aandeelhouers se verwagte opbrengs op kapitaal is 15%. Die interne opbrengskoers van die projek beloop 42% wat dus hoër as die drempelwaarde is. Die beplande SEB inisiatief voeg dus bepaald waarde toe vir aandeelhouers. Belangrike mensekwessies soos dieselfde visie, waardes, verwagtinge, vertroue, verbintenis en toewyding sal baie aandag moet geniet om van die potensiaal 'n werklikheid te maak. Sterk en bekwame leierskap sal ook 'n deurslaggewende rol speel aangesien gewigtige besluite voortdurend geneem sal moet word.

Thesis (MDF)--University of Stellenbosch, 2010. / The constraints that impede the growth of smallholder farmers have been attributed to lack of access to markets and technical expertise. This has led to mainstream banks classifying smallholder farmers as high risk and therefore unwilling to finance smallholder farmers. Contract farming has developed as a model that may be able to link smallholder farmers with agribusinesses who have the expertise and have built marketing channels that can be utilised by the smallholder farmers. Despite its potential to bring smallholder farmers into the mainstream agriculture industry, literature on contract farming has indicated that contract farming can be skewed in favour of the agribusiness due to their superior bargaining power and information asymmetry in favour of the agribusiness. This study examines the Industrial Development Corporation (IDC)’s Kat River Development Scheme to finance nine farmers through a contract farming arrangement with Riverside (Pty) Ltd. More particularly, the study examines how this financing model contributes to improved access to finance, markets and technical expertise for the farmers. It also examines how the arrangement contributes to reducing the risk of financing smallholder farmers for IDC. The empirical analysis indicates that, despite the fact that the farmers are able to obtain access to finance, market and technical expertise, the ability for the scheme to meet its objectives in the long term is dependent on improving transparency between the agribusiness and the farmers, providing appropriate incentives for the farmers to apply the required effort and the farmers buying into the long term strategic aim (or “big picture”) of the scheme.

Thesis (MPA)--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: This research work focuses on the role that the Department of Agriculture has played in the improvement of the livelihood of smallholder farmers in the Vhembe District, Limpopo Province, for the period 1994 to 2004. The research endeavours to determine what was done to improve the livelihood of smallholder farmers, and the extent to which smallholder farmers were developed. It determines the stage of development smallholder farmers are in after a decade of democracy. The study considers various variables that could be responsible for the good or bad performance of the Department of Agriculture in the Vhembe District. The Vhembe District was chosen because it consists of varied ecological and climatic regions, making it possible for various farming enterprises to flourish in one area. The research links the role played by the Department of Agriculture with the level of development of smallholder farmers in the District. It investigates the support that the Department of Agriculture provided through various strategic programmes, such as the Comprehensive Agricultural Support Programme, the Revitalisation of Smallholder Irrigation Schemes, training and development, and poverty-alleviation programmes, aimed at kick-starting micro-enterprises. The research identifies areas where the Department did not meet the expectations of the smallholder farmers regarding support. It outlines possible reasons for good and poor performance of the Department of Agriculture and its extension officers in the four local municipalities of the Vhembe District, namely Makhado, Musina, Mutale and Thulamela. This is based on data gathered through focus group discussions with various groups of farmers and extension officers. The research reveals that the budget allocation for agricultural development has never been enough to address the pressing and varied needs of smallholder farmers in the Vhembe District. The conclusion is reached that the support provided by the Department of Agriculture to improve the livelihood of smallholder farmers was inadequate. Another conclusion is that smallholder farmers are heavily reliant on the Department for almost all their farming needs. This dependency has led to many smallholder farmers not being able to creatively initiate any action that would ultimately empower them to become selfreliant. However, the research shows that a small percentage of farmers have realised the need to become independent in order to avoid lifelong dependency on the Department of Agriculture. The researcher concludes that, after a decade of democracy, there is still a great need for the Department’s support in order to improve the livelihood of smallholder farmers. There is also a need to conduct a skills audit, which will help the Department to place officials according to their areas of expertise, and to capacitate officials who may be lacking some skills through various capacity-building programmes. The research revealed that there may be officials who are morally corrupt in their behaviour and conduct. This has resulted in inefficiency and poor service delivery to farmers. On the other hand there are officials who perform exceptionally well and whose behaviour is beyond reproach. The researcher concludes that these exceptional performers should be recognised and rewarded for their good performance, while those with unsatisfactory performance should be dealt with according to the disciplinary code and procedures of the public service. The need is identified to channel resources to smallholder farmers who will utilise them effectively. This would promote self-sufficiency in the long term. In channelling these resources, the Department should also consider the promises made, with the view to fulfil them as far as possible. The researcher concludes that in order for smallholder farmers to realise their potential they have to change their lives through agriculture. They need to become more organised in order to speak with one voice. They also need to participate in secondary agriculture, where they are able to access more markets, not only as producers but as agro-processors as well. With appropriate and consistent support by the Department of Agriculture in the Vhembe District, smallholder farmers’ livelihood could be improved, which will lead to economic development of the local municipality, the district, the province and ultimately South Africa as a whole. / AFRIKAANSE OPSOMMING: Hierdie navorsingstudie fokus op die rol wat die Departement Landbou gespeel het in die verbetering van die lewensbestaan van kleinboere in die Vhembe-distrik, Limpopo, vir die tydperk 1994 tot 2004. Die navorsing poog om te bepaal wat gedoen is om die lewensbestaan van kleinboere te verbeter, en in watter mate daar tot die ontwikkeling van kleinboere bygedra is. Daar word ook bepaal in watter ontwikkelingsfase kleinboere hulle ná ’n dekade van demokrasie bevind. Die studie ondersoek verskeie veranderlikes wat vir die goeie of swak prestasie van die Departement Landbou in die Vhembe-distrik verantwoordelik kan wees. Die Vhembe-distrik is gekies omdat dit uit verskillende ekologiese en klimaatstreke bestaan, wat verskeie boerdery-ondernemings in staat stel om in een gebied te gedy. Die navorsing veronderstel ’n verband tussen die rol van die Departement Landbou en die ontwikkelingsvlak van kleinboere in die distrik. Dit ondersoek die steun wat die Departement Landbou deur middel van verskeie strategiese programme gebied het, soos die Program vir Omvattende Landbou-ondersteuning, die Opknapping van Kleinboerbesproeiingskemas, opleiding en ontwikkeling, en programme vir die verligting van armoede, wat daarop gemik is om stukrag aan mikro-ondernemings te verleen. Die navorsing identifiseer gebiede waarop die Departement Landbou nie aan kleinboere se verwagtinge ten opsigte van steun voldoen het nie. Dit verskaf moontlike redes vir die goeie of swak prestasie van die Departement en sy voorligtingsbeamptes in die Vhembedistrik se vier plaaslike munisipaliteite, naamlik Makhado, Musina, Mutale en Thulamela. Dit is gegrond op data wat deur middel van fokusgroep-besprekings met verskeie groepe boere en voorligtingsbeamptes verkry is. Die navorsing toon dat die begrotingstoewysing vir landbou-ontwikkeling nog nooit genoeg was om aan die dringende en verskillende behoeftes van kleinboere in die Vhembe-distrik te voldoen nie. Die navorser maak die gevolgtrekking dat die steun van die Departement Landbou nie voldoende was om die lewensbestaan van kleinboere te verbeter nie. ’n Verdere gevolgtrekking is dat kleinboere vir byna al hulle boerderybehoeftes van die departement afhanklik is. Hierdie afhanklikheid lei daartoe dat menige kleinboere nie in staat is om enige kreatiewe optrede te inisieer wat hulle eindelik sal bemagtig om selfstandig te word nie. Die navorsing toon egter dat ’n klein persentasie boere besef het dat hulle onafhanklik moet word om lewenslange afhanklikheid van die Departement Landbou te vermy. Die navorser kom tot die gevolgtrekking dat, ná ’n dekade van demokrasie, daar steeds ’n groot behoefte aan steun van die departement ten opsigte van die verbetering van kleinboere se lewensbestaan is. Daar is ook ’n behoefte aan ’n vaardighede-oudit wat die departement sal help om amptenare na gelang van hulle kundigheidsgebied te plaas, en om deur verskeie kapasiteitsbou-programme daardie amptenare wat sekere vaardighede kortkom, op te bou. Die navorsing het onthul dat daar moontlik amptenare is wat moreel korrup in gedrag en optrede is. Dit het ondoeltreffendheid en swak dienslewering aan boere tot gevolg. Tog is daar amptenare wat besonder goed presteer en wie se gedrag bo verdenking is. Die navorser is van mening dat hierdie goeie presteerders erkenning moet ontvang en vir hulle goeie prestasie beloon moet word, en dat diegene wat ontoereikend presteer ingevolge die staatsdiens se dissiplinêre kode en prosedures hanteer moet word. Daar is ’n behoefte om hulpbronne te kanaliseer na kleinboere wat doeltreffend daarvan gebruik sal maak. Dit sal op die lang termyn selfvoorsiening bevorder. In hierdie opsig moet die departement poog om die beloftes wat hulle gemaak het, so ver moontlik na te kom. Die navorser kom tot die gevolgtrekking dat, vir kleinboere om hulle potensiaal te verwesenlik, hulle hul lewens deur landbou moet verander. Hulle moet beter georganiseer wees sodat hulle uit een mond kan praat. Hulle moet ook by sekondêre landbou betrokke raak waar hulle toegang tot Met die gepaste en konsekwente steun van die Departement Landbou in die Vhembedistrik kan die lewensbestaan van kleinboere verbeter word, wat ekonomiese ontwikkeling van die plaaslike munisipaliteit, die distrik, die provinsie en eindelik Suid- Afrika as geheel tot gevolg sal hê.

Thesis (MPhil)--Stellenbosch University, 2011. / Africa is the continent where home sapiens was born and with its worn out soils, fitful rain and rising population could very well provide a glimpse of our species’ future. The trends that are behind the current deterioration in food security go far beyond agriculture itself. South Africa is food secure at a national level and has been meeting its food needs from domestic sources in the past twenty years. However, in spite of its food secure status, 35% or 14.3 million South Africans are vulnerable to food insecurity. Food security challenges appear to be considerable against a backdrop of a South Africa being a net importer of wheat together with local cereal production that can fluctuate by up to 36% between years. It is unknown to what extend the true impact of climate change might affect this and other agricultural activity; a declining indigenous population as the HIV/AIDS pandemic takes effect; a population poorly endowed with an entitlement to gain access to sufficient food and nutrition; a dependency on oil for energy resulting in an outflow of foreign exchange, expensive agriculture and agricultural crops changed into fuel crops and markets that allocates the limited resources, but not feeding the needy poor. Considering the above, the determinants of food security for South Africa were grouped under the following headings: - Entitlement - Demography - Agriculture - Energy - Climate change - Markets. Nobody who has money to pay for food is starving therefore, given the pervasiveness of malnutrition, the money made by merchants in the food trade does seem an affront to common notions of economic justice. The economic and political point is missed when merchants are blamed for conditions that promoted huge food imports and malnutrition. Merchants are not interested in famine but in commercial markets. These merchants thrive upon a system that excludes the hungry. Recent protectionist behaviour by food export countries and the structural shift in the demand of food require South Africa to evaluate its food security determinants. South Africa requires accurate policies to guide its food security efforts towards 2030.

This dissertation presents a case study of agricultural land use patterns and marketing aspects in the Taif region of Saudi Arabia. This area is one of importance to the overall agricultural future of Saudi Arabia, being a major producer of fruits, vegetables and dates in the Kingdom. In recent years, increases in personal income associated with oil production in the Kingdom have created significant changes in the types of crops grown as well as the way of life of the small farmer. These changes include the following: (1) Because better paying jobs and an enhanced lifestyle are luring farmers to the large urban areas, fewer workers are available for labor on the farms. (2) Large government subsidies have created a situation where the small farmer finds it no longer profitable to grow cereal crops as he traditionally did. (3) A lack of adequate refrigerated trucks and an increase in salinity in groundwater has caused farmers near the market centers of Makkah and Jeddah to cut fruit trees and replant with vegetables that can withstand more saline water and can be transported to the nearby markets more easily than those framers living in the farther areas of the region. What the author concludes is that increased attention to the problems of the small farmer in the region is necessary so that food supplies will be maintained to feed a growing population and so that self-sufficiency can be achieved. Additional support by the government in the way of subsidies and loans and more programs to educate farmers in marketing techniques and improved farm methods and management must be developed. And finally, the farmers should work together, sharing information and resources for the common good of all small farmers in the region.

No description available.

The aim of this study was to explore the role and the prospects of smallholder agriculture as local economic development in Eastern Pondoland, in the former Transkei homeland. The study explored the role of agriculture in contributing to local economic development and the upliftment of the rural poor. It also explored the role that government and its agencies have played and could play in stimulating agricultural development.