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The impact of smallholder irrigation and water security on household welfare : the case of Tugela Ferry irrigation scheme in KwaZulu-Natal, South Africa.Sinyolo, Sikhulumile. January 2013 (has links)
Smallholder irrigation has been promoted across the developing world as a means of poverty reduction and rural development. The potential of smallholder irrigated agriculture in alleviating rural poverty has led the South African government to prioritise and invest in irrigation establishment, rehabilitation and revitalisation. However, the extent to which smallholder irrigation has been able to reduce poverty in the rural areas of South Africa is not well understood. This study, therefore, aimed to contribute to smallholder irrigation literature in two ways. The first objective of this study was to conduct an in-depth impact evaluation of the Tugela Ferry smallholder irrigation scheme on household welfare using the treatment effect and propensity score matching (PSM) methods. Secondly, the study sought to investigate the determinants of household water security, and how the level of water security subsequently affects the farmers’ household welfare. A stratified random sampling technique was used to obtain a sample of 186 irrigators and 70 non-irrigators in the Tugela Ferry area. Descriptive analysis highlighted that although the demographic characteristics of the farmers were not significantly different, the irrigators were characterized by better welfare indicators compared to non-irrigators. The Foster Greer Thorbecke (FGT) poverty indices also indicated that poverty incidence was more pronounced among non-irrigators than among irrigators. The results from the econometric models indicated that irrigation access plays an important role in the welfare of rural households, with irrigators consuming about R2,000 per adult equivalent per year more than the non-irrigators. While irrigation access is important, this study concluded that the poverty reduction effectiveness of smallholder irrigation can further be enhanced by ensuring that the irrigators are water secure. Factors such as age, off-farm income, duration of scheme membership, occurrence of conflicts, method of pumping water, location in the scheme and access to agricultural training influenced household water security. The study recommends that investments in smallholder irrigation should continue for poverty reduction, and that priority should be in ensuring water security not just irrigation participation. The study also recommends the introduction of small motorised pumps among the gravity-reliant irrigators and farmer training on water conservation techniques to improve the farmers’ water security in the smallholder irrigation schemes. Although the study highlighted how perceptions of irrigators could be used to generate the water security index, the water security concept needs further investigation. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2013.
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An institutional analysis of South Africa's new cooperative act : evidence from selected case studies in KwaZulu-Natal.Nganwa, Peace. January 2010 (has links)
Cooperatives are a means through which farmers may gain economic power by reducing unit transaction costs associated with production, marketing and distribution of products. In South Africa, cooperatives are promoted as a means of advancing economic development in rural areas through empowerment, development of income generating activities, improvement of human resource capacity, and increased savings and investment.
The new Cooperatives Act 14 of 2005 was enacted in August 2005 to promote the role of cooperatives as organisations for pro-poor development in South Africa and to increase their chance of survival in the economy. This study uses a New Institutional Economics (NIE) framework to analyse the Cooperatives Act and its worth as a vehicle for promoting pro-poor development. A hypothetical cooperative, predicated by the new Act, was analysed using the NIE to identify institutional problems likely to constrain the collective efforts of small producers. A case study approach was then used to analyse three production cooperatives in KwaZulu-Natal that were registered post August 2005 and still operational in 2008. Interviews were conducted with individual members, directors and project managers (where applicable) between May and July 2008. Open-ended questions provided the flexibility needed to explore the institutional roots of problems identified by respondents.
Free-rider, horizon, portfolio, control and influence problems were identified in the case studies. These problems, which stem from ill-defined voting and benefit rights, resulted in low equity investment, low investment in long term assets, a preference for current cash flows rather than future investment, and social conflict – all of which constrained the competitiveness and growth prospects of the cooperatives studied. In an attempt to mitigate these problems, two of the cooperatives shed their poorest members, a solution which is not consistent with the objective of pro-poor economic development. Additionally, two cooperatives opted to create their own rules to reward investors with capital gains - an institutional arrangement that is not permitted by the new Act.
It is concluded that the new Act should be amended to give cooperatives greater flexibility in their institutional arrangements. In particular, cooperatives should be allowed to issue tradable equity shares that offer benefits proportional to shareholding. If these tradable equity shares carry voting rights and are offered to non-patron investors, aggregate voting
rights conferred on these non-patron investors should be capped to prevent loss of control by patron members. It is further recommended that the same level of start-up support should be made available to all producer groups that formally register their business, regardless of the business model chosen, and that member empowerment should be an essential requirement for registration and public funding.
Keywords: Agricultural Cooperatives, Cooperatives Act, New Institutional Economics, Case Study / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2010.
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Improving access by smallholder farmers to organic crop supply chains : evidence from the Ezemvelo Farmers' Organization, KwaZulu-Natal, South Africa.Mushayanyama, Tinashe. January 2005 (has links)
The 48 members of the Ezemvelo Farmers' Organisation (EFO) in KwaZulu-Natal (KZN), South
Africa (SA), that were fully-certified as organic farmers were surveyed during October-December
2004 to assess their perceived level of satisfaction, trust, cooperation and commitment in a
formal supply chain producing amadhumbes (a traditional vegetable tuber), potatoes and sweet
potatoes for a major SA supermarket group. Empirical recursive models show that a high level of
satisfaction in the working relationship results in these farmers trusting the pack-house agent
more. High levels of trust, in turn, lead to higher levels of both commitment to, and cooperation
in, the supply chain. A simultaneous-equation model showed that EFO farmers with higher levels
of commitment tend to be more cooperative, and that members with higher levels of cooperation
tend to be more committed toward the working relationship.
These results suggest that strategies to improve the working relationship with the pack-house
agent need to promote satisfaction, trust, cooperation and commitment. For example, co-investment
in better crop storage facilities at farm-level would promote satisfaction and hence
trust. There is also scope for more cooperation in the planning of new organic crop products to
grow and market, and to remove some price uncertainty by giving EFO farmers more information
about prices that they will be paid by the pack-house agent in this supply chain. In addition,
satisfaction and, hence, trust, cooperation and commitment may be improved by adopting a formal
contract between the EFO farmers and the pack-house agent to replace the current, incomplete
verbal contract that governs trading. Some issues that may be addressed in this contract are
improved communication systems via regular meetings, renegotiations of trading terms so that
farmers can benefit from positive changes in organic crop prices; guidelines for paying farmers
more quickly by the pack-house agent; mechanisms to trace crop quality to a specific farmer to
avoid free riding; and penalties for breaching the contractual arrangements.
The 48 EFO farmers were also asked to give their perceptions of the main constraints on
organic crop production and marketing in the formal organic crop supply chain. They
perceived that uncertain climate, unavailability of tractor or draught power when needed,
delays in payments for crops sent to the pack-house, lack of affordable inputs (particularly
labour and manure), a lack of cash and credit to finance inputs, lack of affordable transport to
market crops, more work than the family can handle, a lack of manure to purchase; and a lack
of crop storage facilities and telephones to negotiate sales as the current top 10 constraints.
Principal Component Analysis summarized the underlying dimensions in the 20 constraints
ranked by these farmers as indicating "lack of market information and lack of market power";
"crop production expansion constraints"; "commitment to crop area expansion"; "lack of
liquidity"; "lack of proper storage facilities"; and "lack of information about alternative
markets".
Potential solutions to better manage these perceived constraints include: improved risk
management practices (e.g., supplemental irrigation, water-harvesting and small boreholes),
improving access to tractor services via improved tractor scheduling or using local contractor
services, quicker pack-house delivery payments, improving quality inspection at the departure
points at EFO farm-level to reduce crop rejection rates and "free riding" by producers of lower
quality organic crops, more interaction with the retailer to promote sales of organic crops,
providing advice on how the EFO farmers can improve their bargaining power, and providing
more information (e.g. crop prices) about other organic markets and changing consumer
preferences. Apparently, the costs and benefits of these potential solutions, and how they will
be financed, need to be evaluated.
Real accounting marketing margins since 2001 showed that the farmer's share of the
consumer's rand for the 48 fully certified organic EFO farmers rose, while their net returns
(selling price less accounting costs) were lower than those of the pack-house agent and
hawkers selling at the Isipingo market on the South Coast of KZN. Net returns for the 48 EFO
farmers also seemed to be relatively higher if they sold through the informal supply chain
(hawkers) rather than the formal supply chain. The EFO farmers' net returns may be improved
by lowering operating costs and by aggressive marketing to customers willing and able to pay a
price premium for organic crops. These farmers may also consider performing some of t he
marketing services themselves (e.g. crop cleaning, grading and packaging) if they have the
skills and can access more finance. There are, however, hidden benefits from maintaining the
formal supply chain relationship, as the pack-house agent helped to secure tractor services and
fencing, and facilitates access to the retailer. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.
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Institutional and governance factors influencing the performance of selected smallholder agricultural cooperatives in KwaZulu-Natal, South Africa.Chibanda, Mutsa. January 2009 (has links)
This dissertation investigates the impact of institutional and governance factors on the performance of 10 selected smallholder agricultural cooperatives (case studies) in KwaZulu- Natal (KZN). All the selected cooperatives were traditionally structured (e.g., one-member, one-vote system). Due to logistical and administrative constraints, the selected smallholder cooperatives were drawn from the EThekwini and UMgungundlovu Districts (the latter comprising of two sub-districts, namely Camperdown and Msunduzi), which incorporate the major cities of Durban and Pietermaritzburg. Five of the cooperatives grow and market vegetables, three produce and market poultry, one is a beef production cooperative and another operates a bakery. Information from the interviews suggests that members of the selected smallholder cooperatives do not fully understand cooperative principles and have high expectations of potential benefits of being members. Descriptive analysis of the case studies describes total membership of each selected cooperative; average number of management meetings per month; gender and age composition of cooperative members; the characteristics of chairpersons of these cooperatives (e.g., gender, age and education); the initial capital structure of these cooperatives; annual turnover; growth opportunities; and institutional and governance factors influencing the performance of these cooperatives. The results of a cluster analysis suggest that the performance of the selected smallholder cooperatives is influenced by institutional and governance problems. Institutional problems give rise to low levels of equity and debt capital, reliance on government funding, low levels of investment, and subsequent loss of members. Governance problems are strongly linked to the absence of secret ballot, low levels of education, lack of production and management skills training, weak marketing arrangements and consequent low returns to members as patrons or investors. The conclusion is that appropriate institutional arrangements and good governance are important to the performance of enterprises initiated by groups of smallholders. South Africa’s new Cooperatives Act prevents smallholder cooperatives from adopting good institutional arrangements. Alternative ownership structures such as close corporations and private companies offer better institutional arrangements and opportunities for equity-sharing partnerships. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2009.
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The effect of processing and supplementing millet stover with groundnut haulms and cereal brans on feed intake and growth performance of sheep.Abdou, Nourou. January 2010 (has links)
Feeding of animal has become increasingly a big challenge for smallholder farmers in the
dry season in most of Sahelian countries. Sheep has an important role in social and
economical activity of smallholder farmers. Millet stover (MS) and groundnut haulms (GH)
are the main crop residues used. Among concentrates, millet bran (MB) and wheat bran
(WB) are mostly used by smallholder farmers in feeding animals. However, these crop
residues and concentrates are used inadequately. MS is a poor quality roughage diet,
legume residues such as GH and brans are rich in nutritive value. The general objective of
this study was to develop a feeding technology transferable to smallholder farmers by
supplementing MS with GH, MB and WB to increase the growth performance of sheep
during the dry season.
The first study evaluated the effect of chopping millet stover (Pennisetum glaucum L. R.
Br.) in sheep feeding and the degradability in sacco of feeds. Two Holstein cows were used
to determine the degradability in sacco of feeds. The potential dry matter degradability
(g/kg) were 846, 809, 730, 410, 550 and 370 for millet bran (MB), wheat bran (WB),
groundnut haulms (GH), millet stover, leaves plus sheath and stems of MS respectively.
The potential nitrogen degradability (g/kg) of MB, WB and GH were 865, 908 and 817
respectively. The nitrogen content was 7.4, 15.1, 22.0 and 26.2 g/kg for MS, GH, millet
bran and wheat bran respectively. The effects of chopping millet stover (MS) on dry matter
intake in Oudah bicolor sheep were studied in Maradi, Niger. Four treatments were T0
(unchopped MS), T1 (MS chopped, 50 cm), T2 (MS chopped, 25 cm) and T3 (MS
chopped, 10 cm). A randomized block design was applied on 36 sheep, implying 9 sheep
per treatment (T0, T1, T2 and T3). The treatment T2 or 25 cm chopping size gave the best
MS intake of 560 g/day.
The second study evaluated the effects of supplementing millet stover (MS) with groundnut
haulms (GH), millet bran (MB) and wheat bran (WB). These supplements can improve the
feed value of MS and promote live weight gain of sheep in the dry season. The purpose of
this study was to develop a feeding technology transferable to smallholder farmers by
supplementing MS. The study was conducted in two successive phases. The phase 1 of 66
days, evaluated the effect of GH, MB and WB supplementations on MS intake and growth
performance of sheep, the phase 2 of 14 days, assessed the effect of GH, MB and WB
supplementations on intake and digestibility of MS. Six treatments were constituted,
namely, 1, 2, 3, 4, 5 and 6 formed by four levels of GH (0, 200, 400, 600g) and two others
(600g GH + 100g MB) and (600g GH + 75 g WB) respectively. A randomized block design
was applied on 36 Oudah bicolor sheep, implying 6 male lambs per treatment (1, 2, 3, 4, 5
and 6). The GH supplementation levels had a linear effect (P<0.001) on dry matter intake
(DMI) of MS, cell wall and nitrogen. Millet stover intake (MSI) decreased significantly
with increasing level of GH. However the total dry matter intake (TDMI) significantly
increased with GH levels. MB increased (P<0.05) both TDMI, TOMI and nitrogen intake
(NI), (P<0.001). WB increased MSI (P<0.05), TDMI and TOMI (P<0.01), NI (P<0.001)
and cell wall intakes. GH supplementation had both a linear and quadratic effect on DM
digestibility of MS, cell wall and nitrogen digestibility. GH had a linear and significant
effect (P<0.001) on live weight gain (LWG) and efficiency. The maximum average daily
gain (80.5 g/day) was obtained with treatment 6 followed by the treatment 5 (68 g/day).
The animals of treatment 1 received MS stover alone and lost their weight (-19.13 g/day).
It is concluded that groundnut haulms, millet bran and wheat bran had good nutritive value
whereas millet stover had low nutritive value. The 25 cm chopping size was the one to
propose to smallholder farmers. The supplementation of MS as the basal diet with GH and
brans enhanced sheep production through improvements in digestibility and intakes of
TDM, TOM, cell wall and nitrogen.
Key words: Millet stover; groundnut haulms; millet bran; wheat bran, chopping; intake;
degradability; growth performance; Oudah bicolor sheep. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2010.
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The applicability of the agricultural production systems simulator (APSIM) model to decision-making in small-scale, resource-constrained farming systems : a case study in the Lower Gweru Communal area, Zimbabwe.Masere, Tirivashe Phillip. January 2011 (has links)
Small-scale farmers rarely get enough yields to sustain themselves to the next harvest. Most of these farmers are located in marginal areas with poor soils and in semi-arid areas which receive little rainfall yet the farmers practice rainfed agriculture. A number of reasons can be attributed to the low yields characterizing these farms. Lack of relevant knowledge for decision-making and climate change are among the major reasons for poor yields. Whilst there is not much the small-scale farmers can do to influence climate, they can at least make informed decisions to improve their yields. The information necessary for agricultural decision-making include the climate forecast information and information about performance of new technologies be it fertilisers, varieties or other practices.
The study aimed to answer the primary research question: What is the applicability of the APSIM model in decision-making by small-scale resource constrained farmers? This question was supported by secondary research questions namely:
- How useful is the APSIM model in small-scale farmers' adaptation to future climate change?
- What are the current farming systems of Lower Gweru farmers with regards to maize production?
- What are farmers' perceptions of climate change and what changes have they noticed in the last 10 years?
- How do small-scale farmers make crop management decisions?
Data was gathered through five methods namely, Focus Group Discussions, resource allocation mapping technique, APSIM simulations, on-farm experimentation, and semi-structured interviews. Data was collected from a group of 30 small-scale farmers of Lower Gweru Communal area. The study concentrated on maize production due to the fact that it is the staple food and was grown by all farmers.
All the farmers perceived climate to be changing. The changes noted included late start of the rain season, early cessation of rain season and temperature extremes. The majority of farmers highlighted that they were using local indicators to make decisions about climate or to forecast the nature of the coming season before they were exposed to SCF and APSIM.
The data gathered from three selected resource allocation maps were used to run the APSIM model. For which farmers were convinced that the model was credible in yield prediction based on the simulated results which reasonably compared to observed yields. The what if questions raised by farmers during the discussions were also assessed and this further increased the farmers' confidence with the model, as they viewed it as a planning and guiding tool before one can actually commit resources. The semi-structured interviews showed that most farmers will continue to use the model outputs in their decision-making. The reasons being that it was a good planning and budgeting tool, it is cheaper and faster since one can assess a lot of options in a short time and would then decide on which options are viable in a given season. The few farmers who said they would not use the model or its outputs in decision-making cited reasons including lack of a computer to install the model and that it was complex for them. Semi-structured interviews confirmed the data collected in resource allocation mapping, focused group discussions and APSIM sessions. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2011.
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Indigenous approaches to maize production and soil management in Msinga KwaZulu-Natal, Province.Nyiraruhimbi, Agnes. 06 November 2013 (has links)
This study explored and examined indigenous knowledge IK in the process of maize production and soil management by farmers in Msinga in central KwaZulu-Natal. This study was qualitative in nature. Two methods were used for data collection: focus group discussions; and individual semi-structured interviews. The study found that the Msinga farmers have a range of techniques and strategies to produce maize and manage the soil; they have been relying on this knowledge for generations. However, many farmers have also begun to adopt elements of western science such as the use of hybrid seeds, fertilizers and pesticides – albeit access to them is a major problem. It was also found that these indigenous knowledge and techniques have also suffered as result of different factors, including the climate conditions as result of the growing drought in the area, the passing on of elders with knowledge, and the breakdown of social cohesion. Communities' indigenous knowledge has been rendered ineffective to, alone, address their maize production and soil management issues. As a result, indigenous knowledge is dying in this community and the farmers are not able to produce sufficient maize to meet their needs. In the face of these pressures, the Msinga farmers also lack any meaningful external assistance either from the government or private agencies. They have no access to extension. This means that communities have to fend for themselves, and where indigenous knowledge has failed they have no other alternatives that will help them to adjust to their environment. Finally, the study found that as a result of this stasis, the Msinga farmers and their families are poor and lack the basic means for their daily survival; food shortages are frequent. The consequence is that they appear powerless and unable to cope with challenges.
The study recommends an integrated approach to address issues of reconstructing indigenous knowledge; social cohesion; environmental matters; poverty eradication; external support and integrating indigenous knowledge and western science. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2012.
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The practice, constraints and perceptions of improving soil quality through manure application : a case study of three smallholder farmer groups.Naidoo, K. D. 23 August 2010 (has links)
Land degradation and soil nutrient depletion have become serious threats to agricultural productivity in sub-Saharan Africa. Soil fertility depletion in smallholder areas has been cited as the fundamental biophysical cause of declining per-capita food production in Africa. Manure application is a well established and known practice, but not effectively used among South African smallholders. This study investigated the practice, constraints and perceptions of improving soil quality through manure application through a case study of three smallholder farmer groups. Three groups from rural areas of KwaZulu-Natal (Mkhambatini, Mooi River and Richmond) were selected to participate in the study. Participatory methodologies were used to identify and clarify the study problem. Three participatory focus group discussions, one per area, were conducted with farmers at the study sites to discuss farming methods, experience and perceptions of manure use, manure management practices and constraints farmers experience with manure use. Force Field Analysis was used for each group to explore for forces against and in support for manure use. Random soil and manure samples were collected for laboratory analysis to determine fertility levels. Some farmers indicated that soil fertility was low. However, half the sample perceived the land to be productive to some extent. The study showed that 40 per cent of farmers reported improved soil fertility following the application of manure. Due to the limited availability of livestock manure, farmers prefer to use both livestock manure and commercial fertilisers. Furthermore, the study found that except for young farmers (20 per cent of the sample), farmers had not received formal training and very limited extension advice on composting and manure use and management. The study participants were aware of the consequences of declining soil fertility and were attempting to improve soil quality. However, low livestock numbers and poor management led to inadequate amounts of manure, and, limited access to information on manure and compost use. Unless better knowledge of optimal soil nutrient management practice is acquired by the farmers, soil fertility levels will continue to decline, further reducing production potential and rural household food security. Government needs to revisit extension support to meet the needs of smallholders and offer training on sound soil management, sustainable production methods, composting and livestock management. A handbook with graphic detail should be accompanied to provide smallholders with information and advice on how to manage soil fertility. / Thesis (M.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2009.
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Collective farming : elements constituting an effective agricultural co-operative, the case of three co-operatives in the Umgungundlovu district.Dlamini, Thulile Rejoice. January 2010 (has links)
Collective smallholder farming has been widely promoted as a vehicle for smallholder agricultural development in South Africa. As a result, agricultural co-operative registrations in South Africa are increasing. However, research suggests that South African co-operatives have generally not been effective, successful and functional. This study investigated the elements constituting an effective and functional primary agricultural co-operative among three smallholder agricultural co-operatives. It is expected that identification of these elements may enable institutions that offer support to co-operatives make better decisions to improve smallholder farming through primary agricultural co-operatives. Understanding of these elements could inform the efforts for members of co-operatives to achieve their set objectives and thus improve smallholder agriculture profitability. Three rural agricultural co-operatives in the Local Municipalities of Mooi-Mpofana, Mkhambathini, and Richmond in the Umgungundlovu District Municipality were purposively selected for the study because they were registered agricultural co-operatives. Inyamvubu Co-operative (from Mooi-Mpofana) was larger in membership, and well established compared to Umphumela (from Mkhambathini) and Ingwe-Mndeni (from Richmond). The sample included the purposively selected members and non-members of agricultural co-operatives to explore the differences and provide insight to the knowledge, opinions and perceptions of collective farming. A framework for analysing the effectiveness of agricultural co-operatives was developed using literature of objectives of agricultural co-operatives, success factors of smallholder agriculture and organisational effectiveness. This framework was used to analyse the effectiveness of the three co-operatives. Focus group discussions, Force Field Analysis and a survey were used for data collection. The study revealed that the three co-operatives have clearly defined group objectives aligned to those set out by the South African government. The main identified objectives of farming for the three co-operatives included; creation of employment and income generating activities, improving access to funding, strengthening market access and strengthening human and community development. Activities carried out by the three co-operatives took advantage of opportunities in the value chain including production, marketing, and transportation of produce to markets. However, farmers’ activities were hampered by a number of constraints. Production capability of the three co-operatives was hampered by resource constraints such as lack of access to land, machinery and equipment, finances and information relevant to production. Marketing, transportation and financial management capability of the three co-operatives was hampered by poor networking skills, poor infrastructure and low literacy levels. Management capability in the three co-operatives was challenged by complex group dynamics characterised by conflict of opinions and issues related to free-rider, horizon, and portfolio problems. Low capability of the three co-operatives to mobilise resources, use the limited resources available and low capability to manage institutional arrangements rendered the co-operatives ineffective in achieving their set objectives. The study recommends strategies for ensuring the effectiveness of agricultural co-operatives. These include strategies for addressing internal and external issues affecting the co-operatives. Direct intervention from government was recommended to improve production through revising land allocation systems, improving extension services and strict monitoring of effective use of government resources provided to farmers. Government should improve access and training to relevant technologies to improve the processing and packaging capabilities of co-operatives. Marketing and management activities should be supported through provision of improved infrastructure and relevant training. Farmers themselves should consider pooling resources for market rental of crop land, engage in value added activities, and develop informed marketing programs and cost-effective distributing mechanisms. Farmers should elect an effective board of members that will ensure enforcement of agreements and constitution. / Thesis (M.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2010.
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Perceptions of barriers to market participation among three farmer groups in rural KwaZulu-Natal.Mthembu, Nonkululeko. January 2008 (has links)
There has long been evidence that many smallholder farmers can benefit from marketoriented agriculture. However, smallholder farmers often face a number of barriers to accessing the markets. Smallholder market access is often cited as a factor that exacerbates the smallholder situation, but is little researched. This study investigated barriers to market participation among three smallholder farmer groups in rural KwaZulu-Natal. It is hypothesised that identification of these barriers could assist in institutional innovation to alleviate market constraints and challenges faced by smallholder farmers. It is also expected that addressing such barriers may create enabling conditions that would encourage smallholder farmers to access and participate more effectively in markets. Such efforts could improve the ability of smallholder farmers to become part of the mainstream or commercial agricultural economy. Three farmer groups from rural areas of KwaZulu-Natal (Centocow, Mbumbulu and Muden) were selected to participate in the study because they had interests in marketing fresh produce. One group (Mbumbulu) was a certified organic producer and was supplying a formal market. The other two groups (Centocow and Muden) were not organically certified and sold produce to informal markets. A three way comparison that included agricultural Policy Reform, Integrated Development Plans (IDPs) from Local Municipalities and focus group discussions was used to check and validate farmers’ responses to questions asked. Agricultural policy reforms relevant to these groups were reviewed. IDPs were analysed to evaluate service delivery and provision of infrastructure (enabling conditions for market participation). Focus group discussions were conducted to investigate farmer experiences in marketing and perceptions of agricultural policy constraints. The study revealed that access to resources, market information, infrastructure and farmer support services were barriers to market participation. Efforts to incorporate smallholder farmers through agricultural policy reforms in large scale agriculture have failed. Programmes to create enabling conditions (e.g. infrastructural development and telecommunications) were either not budgeted for or not implemented by local municipalities. Local economic development programmes focused on developing tourist attractions, although communal areas (Centocow and Mbumbulu) have the potential for agricultural growth. Local municipalities also faced challenges, such as lack of capacity to plan, implement, budget for planned projects, lack of service provider commitment and municipal funds. The results showed that despite barriers to market participation, smallholder farmers still marketed limited amounts of produce. If identified barriers are addressed, the issues raised in this study might improve market participation. Some barriers require direct intervention by government, as in the case of support services, extension service, credit and training. Investment in good infrastructure may encourage smallholder farmers to participate effectively in markets. This may be done by establishing a market infrastructure that includes collection points, transportation and market deposits in order to address the problems of proximity to markets. Such intervention should require the involvement of the private sector. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2008.
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