Family businesses are considered to be among the most important contributors to wealth and employment in virtually the world. This qualitative study looked at farming family businesses. Farming family businesses present certain unique features that discern them from other family businesses and are worthy of investigation. Two domains are identified in the literature and research about conflict in family business: The business and the family. The researcher postulated that the domain of the family is too broadly drawn and that farming family systems in the Sibling Partnership Stage, with their unique way of life and functioning, consist of several sub-systems which impact on the business. Conflict develops in and between the sub-systems. This study looked at conflict within farming family businesses from a systemic viewpoint, particularly focusing on the process aspects, the interactional dynamics in and between the sub-systems. Four active types of subsystems were identified in the case studies: Couples subsystems, parent child subsystems, sibling subsystems, in-law subsystems or subsystems of which at least one member is an in-law. The research aim was to explore the circular patterns in the two cases as systems and to uncover the function of the conflict in these systems. In both cases, circular conflict patterns came to the fore with the subsystems part of the feedback loops. The conflict escalation happened between the subsystems as elements and the conflict paths were circular, not linear. Sub-themes around family scripts, communication and perceptions about fairness were also uncovered in the research. Both cases were family businesses in the two-generational development stage. The function of the conflict in both systems could only be hypothesised due to the exploratory nature of the research. The researcher hypothesized that the function of the conflict in the systems centred around conflict as an attempt in the system to shake loose from entrenched restricting family scripts. The important themes that presented themselves in the research not envisaged in the planning stage. These themes are part of the systemic patterning in both the cases: Perceptions of fairness or rather unfairness feed into the conflict loop. Rewards and compensation are sensitive matters in all families. The more there are perceptions of unfairness in a subsystem, the more entrenched that belief becomes, the more the conflict in the system escalates and the bigger the emotional distance gets from the assumed beneficiaries of benefits.

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.

This study looked at the opportunities and challenges faced in promoting smallholder farming as an element in rural economic development. The main objective is to highlight the key factors affecting smallholder production; and how those factors affect smallholder farmers in rural areas of Buffalo City Municipality, and hence identify the ones likely to predict success for future use in intervention programs. The content and scope of this study is limited to the socio-economic constraints (economic activities, household assets e.g. natural assets, physical assets, financial assets etc.) faced by rural households and therefore prescribe the necessary interventions to enhance rural livelihoods. Data was collected through review of secondary sources, direct observation through field visits and interviews with households. Questionnaires were used as the main tool of inquiry to gather data from households in selected villages within Buffalo City Municipality. The collected survey data was coded and analyzed using Statistical Package for Social Sciences (SPSS) Version 19.0. The study used Descriptive, Gini Coefficient and Binary Logistics model to analyze the collected survey data. For the descriptive model, the main pointers that were employed for this study were frequencies and mean values. The Gini Coefficient model was used to measure the contribution of different sources of income to overall inequality. The binary logistic regression model was used to uncover the correlates of the household income for different rural groups (famers and non-farmers). The results reveal that farm income has a strong association to overall household income per capita. Unearned income sources also have a substantial contribution to household income. Remittances and child grants were significant to non-farming household income per capita. Given the diminishing farm size of smallholder-led agriculture; these results suggest that a diversified household income portfolio is vital in addressing poverty in rural areas. Based on the results this study concluded that agricultural activities cannot solely enhance food security.

Although food insecurity is said to have decreased in South Africa in the past years particularly at the national level, however, at household level a substantial proportion of households remains at risk of food insecurity and are experiencing hunger particularly in the Eastern Cape Province were poverty is rife. Food insecurity in the Eastern Cape Province is attributed to the fact that agriculture, the mainstay of the rural economy is no longer given the value that it should carry, does not help the situation. Despite much research on food (in) security in South Africa, the link between poverty and household food security is not at all clear. This study seeks to fill this gap specifically by looking at the linkages in the main between food security and poverty especially in the community level. Amidst the various programmes and initiatives that are in place in South Africa, there is continual prevalence of food insecurity facing the majority of South African households. The major aim of this study was therefore to examine the impact of one of these programmes, the Zanyokwe irrigation scheme in enhancing food security not only for the farmers but also for the surrounding communities. This study adopted a qualitative approach to research. The study unearthed that even though Zanyokwe irrigation scheme has played an indispensable role in enhancing food security for the smallholder farmers and the community at large challenges such as market challenges, road infrastructural issues, land tenure issues, lack of proper coordination amongst the farmers as well as farmer empowerment are a major limitation to the growth of the irrigation scheme and the farmers. Thus, the study recommended that farmer support services, training, agriculture subsidies, improved infrastructure as well as addressing market related challenges will go a long way in reducing the plight of the Zanyokwe farmers as well as enhancing food security

Most smallholder farmers in South Africa are characterized by poor resources such as land, labour and capital while they play an important role in poverty alleviation especially in poor rural areas. Smallholder farmers are increasingly recognized because of their contribution to household food security. The world markets are increasingly being integrated due to globalization and liberalization. As a result, smallholder farmers are facing increasing market competition, not only in international markets but in local markets as well. However, smallholder farmers often face a number of barriers to accessing these markets arising in part from the tightening of food safety and quality standards requiring compliance with phytosanitary and sanitary standards and growing power of supply chain integration. Furthermore, the viability of these smallholder producers is constrained by institutional obstacles which include lack of access to information, high marketing and transaction costs and low quality and lack of critical volume in the absence of bulking up arrangements, etc. These barriers have contributed to the exclusion of smallholder/small-scale farmers from formal markets. In order to address these obstacles and speed up the pace of agrarian reform many support schemes (farmer support programmes) are now being designed to specifically address market access and value chain issues through unique co-innovation arrangements to improve the farmer’s access to profitable international chains. A number of farmer support programmes (FSP) have been implemented in South Africa to reduce the risk of a lack of capacity and a lack of economic and/or financial experience in smallholder farms. Intervention measures have been instituted to these smallholder farmers to assist them to move out of poverty through agricultural production. The aim of this study was to understand the roles played by farmer support programmes in addressing income and welfare levels and sustainability of smallholder farmers in South Africa. Eighty nine (89) farmers were interviewed for this study and almost half (49%) of them received support from various organizations while 51% of the sampled farmers did not receive any support. The study was designed to compare the two groups between the treated and control group to assess the impact of these programmes.Using a Tobit and Propensity Score Matching technique, potential diffusion effects were eliminated between farmers supported by Farmer Support Programmes and farmers that did not belong to support services. The latter was selected from comparable communities with no agricultural support services. Findings from the Tobit regression and propensity score matching are consistent across the two methods, suggesting that being a member of any agricultural support programme has a significant positive impact on income and welfare of smallholder farmers.Farmer Support Programmes and collective marketing activities such as the collection and sale of members’ products appear to have a significant and positive impact on smallholder welfare of those farmers engaged in them. In the second analysis the study tested the types of arrangements that farmers would adopt to market their produce. From the results it was established that those farmers who were supported by institutional arrangements or FSP had better access to markets than those farmers who operated as individuals. Marginal effects are used to show the degree to which farmers chose a particular marketing channel or institutional arrangement that these farmers take when trying to access better paying markets. Then the final analysis is on factors that determine the extent to which collective action contribute to farmers’ income and market access. A number of variables (age, distance to the market, region the farmers are located) were evaluated using the multinomial regression model. Empirical results suggest that among South African cooperatives, those established in KwaZulu-Natal and partly in the Eastern Cape and upon the voluntary initiative of farmers are more sustainable and have access to better paying markets both locally and internationally than the other areas. The results also show that NGO-supported cooperatives have a longer life span than Government controlled cooperatives.