Thesis (M.Sc. (Agricultural Economics)) -- University of Limpopo, 2015 / Food insecurity and hunger problems have received considerable attention in recent years from research experts and governments worldwide. The most important nutrients in food security are proteins, especially animal proteins. Previous studies have indicated that poultry production is the strategic source of animal protein because of its fecundity, fast growth rate and short generation interval. The poultry production sector consists of broiler and layers subsector. In South Africa, broiler production is practised by both large-scale and smallholder farmers; with the former dominating the retail and urban markets. Smallholder broiler farmers on the other hand, produce for local individuals and do not have access to high value chain markets. There are several studies on broiler value chain countrywide and on broiler resource-use efficiency in many developing countries. However, most researchers have not focused on smallholder broiler farmers despite the fact that they provide cheaper broiler meat to the majority of low income rural populations. Thus, this study analysed the broiler value chain and socio-economic factors that contribute to resource-use efficiency of smallholder broiler farmers in general in the Capricorn District of Limpopo Province. Stochastic Frontier Production Function was used to identify the socio-economic characteristics that contribute to broiler production and to determine the level of resource-use efficiency by smallholder farmers. Value chain analysis (VCA) was used to identify value chain actors and the position of smallholder broiler farmers along the value chain. Descriptive statistic results revealed that most smallholder broiler farmers are mostly female (79%) and more than 65 % are over the age of 31. The broiler input cost analysis indicated that feed cost contributed the highest expenditure (60%) in smallholder broiler production. Socio-economic factors such as educational level, experience in broiler production, access to credit, gender, access to transport, and age, were significant at different levels and therefore affect broiler production by smallholder farmers. The study also found that farmers in the study area were underutilising their resources with resource-use efficiency varying from 97% to 8%. Several constraints that v prevent smallholder broiler farmers from accessing the high value chain markets were identified. On the basis of the findings, it is recommended in this study that efforts be made to incentivise younger and energetic farmers to participate in broiler farming, government and the private sector should invest in research in order to establish alternative cheaper feeds to help reduce overall production costs, and the need for improved access to credit in order to enhance the working capital of farmers. Furthermore, the establishment of information sharing marketing cooperatives, slaughtering, processing and packaging facilities for smallholder broiler farmers in the study area will improve access to high value chain markets.

Emerging broiler famers are faced with the challenge of acquiring contracts with the contract providers in South Africa. The question is, are these emerging farmers able to perform well financially regardless of the availability of contracts to their disposal. Profitability is one of the core issues to the development and sustainability of emerging broiler farmers. A well performing farmer is the one who is able to manage and improve the good financial performance of the farm in general. In order to determine the financial performance of the farm, financial ratios can be useful in determining and analyzing how a farm performs financially. In this study, four financial ratios are used to analyze and determine how emerging broiler farmers in Gauteng perform financially. This is done through a representative farm model which makes use of ten emerging farmers situated in the southern and northern sides of Gauteng. Out of ten emerging broiler farmers that took part in the study, the results show that only two of them are producing under contracts. This is an indication that emerging broiler farmers in Gauteng are characterized by both financial and production risk. This further implies that farmers who do not have contracts are likely to have a poor financial performance in as far as broiler enterprise is concerned. The study establishes the differences between the contract growers and the non contractors that form the representative farm model and this is achieved by looking the results of the financial ratios. The study further distinguishes the financial performances between the southern and northern sides of Gauteng which form the representative farm model. The results indicated that although 80% of the emerging broiler growers in Gauteng do not produce under contracts, they are still able to perform well financially. However the contract growers outperform the no contractors in terms of financial performance due to a well defined market structure. / Dissertation (MScAgric)--University of Pretoria, 2010. / Agricultural Economics, Extension and Rural Development / unrestricted

Thesis (MScEng (Industrial Engineering))--University of Stellenbosch, 2011. / ENGLISH ABSTRACT: Small-scale farmers have the opportunity to gain access to markets through a contract farming arrangement. The key question is whether it is financially feasible for a small-scale farmer to enter into a contract. The objectives of this study were to develop a model that could be used to determine the financial feasibility of small-scale contract broiler farming in an intensive production system, compare three different genotypes namely: Cobb500 males X Hybro G females, Ross 308 males X Potchefstroom Koekoek females (crossbred) and the purebred Potchefstroom Koekoek, and evaluate current smallscale farmers’ broiler production by means of a case study. Financial performance indicators such as the net present value, cash flow and profit and loss statements were used to analyze the feasibility of all the scenarios. The model was built in Microsoft Excel. Five hundred, 1500 and 2500 birds/cycle scale of production were analyzed. Results revealed that based on the capital costs used, a 500 birds/cycle scale of production was uneconomical and that a farmer would have to receive R25.01/kg broiler meat in order to break even. The 1500 scale of production showed much better results. A farmer could break even at R17.51/kg meat. The capital investment cost of the 2500 scale of production was so high that the farmer would have had to sell his broiler meat for R18.54/kg. Performance traits of genotypes were collected through an experiment and data was statistically analyzed using ‘Statistica 9’. Results showed that there were significant differences between the cumulative feed intake, feed conversion ratios and the European production efficiency ratio of the different genotypes. No significant difference was found in the liveability of the genotypes. Data on performance traits was used as input into the model so that the economic feasibility of the genotypes could be compared. Results showed that a purebred Potchefstroom Koekoek genotype was not suitable for an intensive production system and that the crossbreed did not perform as well as the broiler breed, but that it would be worthwhile investigating the performance traits of the cross breed under less optimal conditions or in a free-range system. The lower capital costs necessary for a freerange system, together with the high premium paid for free-range broiler meat, may give admirable results in the economic feasibility of a small-scale broiler farm. / AFRIKAANSE OPSOMMING: Kleinboere het die geleentheid om deur kontrak boerdery toegang tot markte te verkry. Die vraag is egter of dit finansieël haalbaar is vir 'n kleinboer om kontraktueel verbind te word? Die doelwitte van die studie was om: ‘n model te ontwikkel wat gebruik kan word om die finansiële lewensvatbaarheid van' n klein-skaalse braaikuikenboer te bepaal onder 'n intensiewe produksiestelsel; verskillende genotipes naamlik: Cobb500 hane X Hybro G henne, Ross 308 hane X Potchefstroom Koekoek henne (kruising) en die suiwer Potchefstroom Koekoek te evalueer en die die huidige klein-skaal boer se braaikuikenproduksie deur middel van 'n gevallestudie te evalueer. Finansiële prestasie aanwysers soos die netto huidige waarde, kontantvloei, asook wins en verlies state was gebruik om die haalbaarheid van die verskeie gevalle te analiseer. Die model is op Microsoft Excel gebou. ‘n Produksie skaal van 500, 1500 en 2500 kuikens/siklus is ontleed. Resultate het getoon dat, gebaseer op die kapitale koste wat gebruik is, 'n produksie skaal van 500 kuikens/siklus onekonomies is en dat ʼn boer R25.01/kg sal moet ontvang om gelyk te breek. Die produksie skaal van 1500 kuikens/siklus het beter resultate getoon. 'n Boer kan gelyk breek teen R17.51/kg vleis. Die kapitale beleggingskoste van die produksie skaal van 2500 kuikens/siklus was so hoog dat die boer R18.54/kg sou moes ontvang het om gelyk te breek. Prestasie van genotipes is ingesamel deur middel van 'n eksperiment en data is statisties ontleed met behulp van Statistica 9. Resultate het getoon dat daar hoogs beduidende verskille tussen die kumulatiewe voerinname, voeromsetsverhoudings en Europese produksie effektiwiteits verhouding van die verskillende genotipes is. Geen beduidende verskil is gevind in die leefbaarheid van die genotipes nie. Inligting oor die prestasie eienskappe is gebruik as insette tot die model sodat die ekonomiese haalbaarheid van die genotipes vergelyk kon word. Resultate het getoon dat 'n suiwer Potchefstroom Koekoek genotipe nie geskik is vir 'n intensiewe produksie stelsel nie en dat die kruising nie so goed soos die braaikuiken gevaar het nie, maar dat dit die moeite werd sal wees om ondersoek in te stel na die produksie potensiaal van die kruis kuiken in minder optimale toestande, soos ‘n vryloop stelsel. Die laer kapitale koste en die hoë premie wat betaal word vir vryloop braaikuikenvleis mag geloofwaardige resultate op die ekonomiese haalbaarheid van 'n kleinskaalse braaikuikenboer toon.