Agriculture is a potentially important activity to address poverty, hunger and unemployment in rural communal areas. To cater for the needs of the many small-scale farmers in KwaZuluNatal, the Farming Systems Research Section (FSRS) was mandated in the mid-1990s to conduct on-farm, client-orientated research in rural communal areas. The identification of the Obonjaneni community as target area by the Extension staff was based on the fact that agriculture was in a poor state and that very few agricultural activities were taking place in Obonjaneni. Members of the community endorsed this by describing agriculture as "dead and not sick" when the FSRS arrived in the community during late 1997. Secondary information gleaned from the Bioresource Programme indicated that there was considerable potential for improved crop and vegetable production in Obonjaneni. Livestock in the community was destructive and prevented crop production activities in the communal cropping fields. A diagnostic study took place during March 1998, when 17 people engaged in agriculture were individually interviewed at their homesteads. Of the 17 respondents interviewed, 10 (59%) were involved with both crops and livestock, six (35%) planted crops only and one (6%) had only livestock. Most of the agricultural products were retained to satisfy household food requirements, with a very small proportion of products (29% of respondents indicated a once-off income through selling of potatoes, maize or livestock) being marketed in the community. The diagnostic survey, and further discussions with members of the community, revealed that agriculture was in a poor state, in terms, for example, of productivity, community interest in agriculture and livestock control. The two main issues which had a negative impact on the agricultural activities in Obonjaneni were identified as stray animals and a lack of agricultural expertise. Indications were that no-one in the community was permanently involved in agriculture and no-one seemed to rely on agriculture as a source of income. Obonjaneni is, however, an area with high agricultural potential and reports were that, in the past, the community was actively involved in agriculture. At the time of the interviews, no activity was taking place in the 40 ha of communal cropping fields, which had been unplanted for five to seven years at the time of the interviews, due largely to the major problem of stray animals. Maize was the main crop produced in Obonjaneni in areas around the homesteads, with 16 (94%) of the respondents interviewed planting it. People interviewed harvested between 100 kg and 1000 kg of shelled maize, while the yield averaged VI approximately 300 kg per household. The maize yields obtained from the small areas at the homesteads in general did not meet the requirements of households. People in the community did not use lime when growing crops and vegetables. Soil analyses indicated that soil fertility, and particularly the high soil acidity levels, were negatively affecting the production of crops and vegetables. Another important finding was that all the people interviewed spent money on some fertilizer, but 94% of the farmers interviewed had never had their soils tested. The community garden was in a poor state, with low vegetable yields and despondent garden members. Poverty, the agricultural constraints identified and the low agricultural production justified the focus of an on-farm research and technology dissemination programme. The objective of the intervention was to revive agriculture in Obonjaneni. The constraints were used as the basis for planning the research programme. The on-farm trials confirmed that the Obonjaneni area has considerable agricultural potential. It was found to be extremely difficult to initiate a livestock programme to address the constraints. The main reason for this was the absence of an organised community livestock association in Obonjaneni to provide support and to guide a research programme. The main technology dissemination events were (i) activities such as planting, management (e.g. weeding and pest and disease control) and harvesting of trials (ii) farmers' field days and (iii) feedback meetings on trial results. The farmers ' field days drew participation from across all sectors of the community, including community leaders, participating and nonparticipating farmers (including some farmers from neighbouring communities) and pupils, who had agriculture as a subject, from the local secondary school. An important input was obtained from members of the community's Amazizi Maize Association, who shared their knowledge and experiences at the farmers ' field days and at meetings. Feedback from farmers and the questions asked by them were encouraging and showed that some farmers were benefiting from the on-farm trials. A very strong indicator of the growing interest in agriculture between 1997 and 2002, when a comprehensive impact evaluation study was conducted as part of the study, was the increase in the number of fields being cultivated and planted in the communal cropping area. In 1997 not one field was planted; during the cropping season of 1998/1999 eight fields were planted with maize, 16 fields during 200112002 and 44 fields in January 2003 (41 fields with maize vu and 3 with potatoes). Records kept by two farmers showed net profits during the 200112002 season ofR3 572 and R2 443 from the maize they produced. During the impact evaluation study conducted in September and October 2002, individual interviews were held and 113 questionnaires were completed from a selected sample of 223 out of a possible 937 homesteads in Obonjaneni. Women in 68% of these households were found to be responsible for agricultural activities. The feedback from 65% of the respondents was that the state of agriculture in Obonjaneni has improved at the time of the interviews, compared to the situation prior to the on-farm research and technology dissemination programme, when the people had described agriculture as "dead and not sick". The improved production of crops contributed largely to the view that agriculture in Obonjaneni had improved. Bearing in mind the poor state of agriculture, and the total absence of any cropping activity in the communal fields when the FSRS arrived in Obonjaneni. Five years later approximately 90% of the respondents in October 2002 were of the view that agriculture had a good and bright future for agriculture in the community. An important aspect was that approximately 23% of the respondents had the vision of being upgraded from "a small- to a large-scale farmer" category. The on-farm research and technology dissemination programme conducted in Obonjaneni between 1998 and 2002 contributed to the revival of agriculture and benefited people in terms of improved crops and vegetable production, especially in the communal cropping fields and community garden. It was responsible for some employment opportunities (e.g. weeding and harvesting of maize) and for the production of produce to sell and buy in their own community. The intervention of the FSRS engendered new enthusiasm for agricultural production in the Obonjaneni community and contributed to the appreciation by farmers of the enormous potential that agriculture holds for food security and the upliftment of people living in the community. This thesis includes chapters dealing with target area selection, secondary information, diagnostic studies, on-farm research and technology dissemination, the selection of a sample and the results of an impact evaluation study. The many lessons learned during this intervention are translated into recommendations for use in future initiatives of a similar kind. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.

This study investigates the characteristics of technology adoption by small-scale farmers, notably the factors influencing the adoption of hybrid maize seed, inorganic fertilizer and machinery technologies. The study also on the basis of socio-economic and institutional factors, identifies the dimensions of small-scale farmers. Data for the study were obtained from a sample survey of 160 households in the Amangwane and Amazizi wards, located in the Okhahlamba magisterial district of KwaZulu-Natal during August 2000. The chief aim of this study is to generate empirical information that can be used to devise programs to encourage small-scale farmers to adopt agricultural technologies. The motivation of the research emanates from the fact that there is limited empirical information as to the actual adoption patterns of agricultural technologies by small-scale farmers. The nature and relative importance of factors associated with technology adoption is time and location specific. The study by using more recent and broader information builds on previous studies in order to complement technology adoption research on small-scale farmers. Understanding what factors influence the adoption of farm technologies and categories or dimensions of small-scale agriculture should provide information on policy options to stimulate technology adoption and improve growth in agricultural productivity. A categorical dependent variable was specified to identify farmers' adoption pattern of hybrid maize seed and fertilizer. Seventy-two farmers were adopters of both hybrid seed and fertilizer, 56 were adopters of either hybrid seed or fertilizer while 32 farmers were non-adopters. The results of binary logistic regression analysis indicate the adoption of hybrid maize seed and fertilizer is positively associated with, in order of importance, larger farms, older household heads, more value of livestock and better access to information sources. An index that indicates farmers' status of adoption of machinery technologies was constructed using a principal component analysis technique. The analysis showed that the adoption of machinery technologies can be represented by the single index which could be used as a dependent variable. A principal component regression analysis was subsequently used to determine factors contributing to the adoption of the machinery technology index. The results indicate that adoption was higher for (1) older and male headed households in general and residents of the Amangwane ward in particular; (2) operators of more arable land, owners of more livestock and earners of more non-farm income; and (3) households with large family labour, and households that made use of extension services and information sources. These results are consistent with hypothesised relationship between technology adoption and the predictors and are supported by previous empirical findings. Priority should be given to policies that alleviate the tenure insecurity problem on arable land and this in turn promotes a land rental market. This would involve an institutional change and legal infrastructural support services. Arable land holding is highly skewed within the communal setting and the state needs to address this equity issue on arable land through redistribution or reform policies. The state needs also to invest in public goods that alleviate the problems of private investors for example by encouraging credit providers or promoting rural financial markets to alleviate liquidity constraints and enhance adoption. Investment in farmer training and education should therefore, be seen as priority if higher adoption rates and an improvement in income are to be achieved. Inadequate and poor extension and information services imply an urgent need for the formation of community and farming associations and for the provision of extension services to groups of farmers. Investment in these areas may reduce the cost of technology transfer programmes. The results of a principal component analysis to identify the dimensions of small-scale farmers in communal areas of KwaZulu indicate that farmers fall into distinct categories. Component 1 is an emerging commercial and a more mechanised household while component 2 is a land-less farm household that is more educated and earns more non-farm income largely from contractor services. Component 3 is a non-farm female headed household that depends on income from land renting and non-farm jobs. Component 4 is a small intensive garden farmer, headed by a relatively educated female who has access to institutional services. Component 5 is relatively less educated, a female-headed and land-poor household that rents land and produces intensively. It is concluded that a single policy measure cannot do justice to the needs of all of the farmers since it would affect different households differently. An integrated and a comprehensive programme is needed that would promote agriculture; facilitate income transfer or safety nets to alleviate poverty and the relief of short-term stress; address the problems of tenure insecurity; overcome the gender inequalities in accessing resources; and restructure institutional supports by providing rural finance, and an extension and legal infrastructure. / Thesis (M.Sc.Agric.)-University of Natal, Pietermaritzburg, 2001.

The study aimed to investigate the hygiene quality of fresh agricultural produce, irrigation water and compost from four cooperatives (Jabulani, Nungwane, Senzakahle and Siyazenzela) supplying the uMbumbulu Agri-Hub Non-Governmental Organisation. In addition, the influence that socio-economic characteristics such as age, gender, level of education and training had on the uMbumbulu farmers’ hygienic practices was investigated. Questionnaires, key informant interviews and laboratory analysis were used to collect data. The most probable number (MPN) method, a microbiological technique, was used to quantify selected hygiene indicators (i.e. total and faecal coliforms including Escherichia coli) from compost, irrigation water and leafy vegetables (spinach and lettuce) during the months of October, November and December 2011. Microbiological analysis on lettuce and spinach produced by the four Agri-Hub cooperatives confirmed that these vegetables were safe to eat and unlikely to cause sickness. The irrigation water sources, vegetables and compost faecal coliform levels met national standards with faecal coliforms of <1 000 MPN/100ml for irrigation and<200 MPN/g for the leafy salad vegetables. Compost faecal coliform levels were <1000/g and E. coli levels of <30 MPN/g, these levels decreased over the 3 months. Descriptive statistics such as the Chi-Square test using IBM SPSS and a logistic regression was performed using the STATA 11 software. The sample consisted of 60% female and 40% males, most of which (73%) were above the age of 40. A total of 60% of respondents received income from farming activities, receiving revenues of between R150- R250 a week. The logistic regression indicated that farmers already receiving some income from farming activities and those that had received training on hygienic farming practices were likely to wash hands and equipment prior to entering the field compared to those who had not. These variables influenced the hygienic practices with a probability of 26% and 32% respectively at 5% significance level. The logistic regression also showed that respondents with primary or no formal education were less likely to wash hands and equipment prior to entering the field compared to those who had a secondary level education. This unlikelihood had a probability of 35% for primary education and 43% for farmers with no formal education at significance levels of 5% and 10% respectively. This study indicates how training, education and farming experience are important and effective tools in implementing good hygienic practices in small-scale farming. The study’s main recommendations are that policies encourage farmer awareness on their responsibility of producing vegetables that are of good hygienic quality, especially if such produce is to reach the market. Furthermore policies should advocate for small-scale farmer training. This training should not be limited to subsistence farming but should also aim at preparing farmers towards accessing produce markets. Farmer training in hygienic practices should aid farmers to meet the stringent market standards allowing for better access, the regular income from such activities support farming as a livelihood and bearer of food security. It must also be noted that farmers require support in attaining the various resources needed in order to successfully and continually supply markets. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2013.

Previous studies by Thomson (1996) and Crookes (2002) in land rental markets of rural KwaZulu-Natal were based on the premise that rental markets brought about efficiency and equity gains. Indeed these gains were proven by econometric analyses in both studies. Poor households that lacked the labour, time and other resources to farm land prior to the introduction of the rental market, tended to leave their arable land idle. In participating in rental transactions, land transferred from these poor households to households with the resources and the willingness to farm; and rental income was earned by the poor households. The current 2003/4 survey sought to evaluate the gains in two new areas, Mhlungwini in the Estcourt District and Duduza in the Bergville District, not covered in previous studies. Institutional interventions, related to the land rental market, in Mhlungwini and Duduza, had started in 2000 and 1993 respectively. Equity and efficiency gains were again proven as Lyne (2004) reports. While Chapter 2 provides an in-depth review of literature related to the theory of economic institutions, Chapter 3 applies this knowledge to Thomson's (1996) pilot project on institutional reform. This project, in terms of its action research that bore the ex ante transaction costs of willing participants, set in motion a process of institutional change leading to the development of the land rental market. The introduction of a formal contract, approved by the tribal authorities, served to give credence to rental transactions. In addition, institutional changes were made to reduce the likelihood of crop damage by stray cattle on arable land, in order to encourage willingness of households to lease in land. Recommendations were made by Thomson (1996) to further increase the exclusivity of arable land property rights. Options were evaluated by the author for institutional reform of communal grazing resources. This is to prevent degradation of grazing land caused by overstocking. Recommendations were made to promote sustainable use of the land. Chapter 4, apart from briefly analyzing the current survey results, provides two comparative studies of institutional reform, the first related to Australian water resources and the second related to land registration experiences in Africa. The last section of the Chapter evaluates a proposal for introduction of formal financial services to rural farmers. / Thesis (M.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.

Small-scale goat farmers from south-western KwaZulu-Natal Province, South Africa, identified gastrointestinal helminths, dry-season feed scarcity and poor reproductive performance as major production constraints and highlighted the paucity of information on goat health and management. The research and extension processes adopted to address these problems comprised on-station experimentation, followed by on-farm validation combined with the participatory dissemination of both study findings and relevant information on goat health care. The approach included the use of the FAMACHA© system to assess anaemia, a characteristic symptom of infection with the gastrointestinal nematode, Haemonchus contortus (Rudolphi, 1803). On-station experimentation indicated that urea-molasses block supplementation during the dry, winter season was a cost-effective option. Unfortunately, when tested on-farm, the value of such supplementation proved inconclusive, possibly due to low block consumption and further research into alternative and palatable protein supplements for goats is suggested. However, tactical anthelmintic treatment with ivermectin effectively reduced faecal egg counts and is recommended, as is concurrent symptomatic anthelmintic treatment, as determined by the FAMACHA© system, since this practice appeared to improve reproductive capacity. Investigations to better adapt the FAMACHA© system to goats is, however, recommended. A flexible training framework was developed with the collaboration of the farmers, providing them with advice on goat health and management. This ‘hands-on’ approach encompassed regular meetings geared to the farmers’ current expertise and exploited the on-farm experimentation as a training vehicle. The process nurtured local farmer ‘champions’, strengthened the extension skills of researchers and technicians and incorporated the development of a Goatkeepers’ animal health care manual. Indications are that the use of such an approach has considerable potential for the development of goat farming. Moreover this process, which is relatively novel for South Africa, is equally applicable to other similar agro-ecological zones. Access to veterinary and agricultural inputs in areas where communal grazing is practised could be vastly improved and a case is made for universities, researchers, extensionists and farmers to collaborate to encourage the long-term sustainable development of these communities. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.

The Ezemvelo Farmers’ Organisation (EFO) is a certified organic smallholder group in KwaZulu-Natal province (South Africa) that exists as an institution to improve smallholder access to niche markets by reducing unit production and transaction costs. The study is motivated by the need to understand drivers of collective action, prevalence of internal group free-riding, and the impact of contract terms on contract performance. These three theoretical concepts are pertinent in understanding organisational and institutional issues affecting the performance of smallholder organic farming groups and in formulating policies to promote the performance of such groups. The study relies on the theoretical foundations of collective action, free-riding and contracts found within the realm of New Institutional Economics (NIE). These theories, though separate, are in fact related in certain respects. Collective action in smallholder groups, apart from being a function of a plethora of socio-economic factors, including transaction costs, could be constrained by free-riding within the group, which in turn could be influenced by flawed contractual arrangements. This study of collective action focuses on 200 farmers drawn from a sample survey of 49 non-EFO members, and a census survey of 103 partially certified and 48 fully certified EFO members. A ‘collective action’ model investigates the impact of perceived benefits and savings on production and transaction costs attributed to collective action by drawing comparisons between EFO members and non-members using a multinomial logit model. The study of free-riding uses data from 151 members of the EFO to construct an index of free-riding within the group using principal components analysis (PCA). A ‘contract model’, which also focuses on EFO members only, attempts to measure the impact of verbal contract provisions on contract performance in addition to evaluating the determinants of preferred contract terms using a combination of PCA, Ordinary Least Squares (OLS) regression, and logit models. Results indicate that continued participation in EFO is not influenced by the age or gender of the farmer, but positively influenced by growth in the net benefits of participation, and negatively by an increase in the size of the household’s cropland or on-farm earnings. With respect to production and transaction costs, the results suggest that EFO has reduced fully certified members’ concerns that crops would be damaged by livestock or constrained by inadequate technical information. However, this is not the case for other problems such as price uncertainty in conventional markets, a lack of affordable operating inputs, a lack of affordable transport, and a lack of communications infrastructure. The index of free-riding behaviour constructed using principal components analysis suggests that free-riding poses a serious threat to EFO’s collective marketing efforts. Ordinary Least Squares regression analysis of the index scores shows that members who are male, poorly educated, partially certified, aware of loopholes in the grading system, and who do not trust the buyer are more likely to free-ride. Benefits accruing to EFO members are limited and there is substantial confusion among members about the terms of EFO’s verbal contract with the pack house that purchases their organic produce. Ordinary Least Squares regression analysis of the impact that perceived contractual terms have on quantities delivered to the pack house yielded interesting findings. Perceptions that delivery calls are made by the buyer, that grading procedures are flawed and that prices are not jointly established were found to reduce quantities delivered to the pack house, after controlling for differences in farm and farmer characteristics. Logit models estimated to identify the determinants of preferred contract clauses indicate that farmers with higher levels of formal education and farm income, and lower levels of experience, favour a written contract over a verbal contract. Similarly, farmers with higher levels of formal education and lower levels of family farm labour favour a contract denominated by area rather than weight. It is concluded that EFO should recruit households that rely on farming for income and which are land constrained. EFO is more likely to survive if it continues to secure fully subsidised information, transport, fencing, and certification services for its members, and if it improves the benefits of participating by synchronising harvest and delivery dates, negotiating price discounts for organic inputs, and by maintaining an office with telephone, fax and postal services. In the longer-term, EFO should address institutionalised free-riding by issuing tradable ownership rights. In the short-term, EFO must engage with the pack house (buyer) to remove flaws in the grading process that conceal the origin of low quality produce. Transparent and mediated negotiations leading to an incentive compliant contract with the buyer may also help to build trust and reduce free-riding within EFO. It is also recommended that the terms of EFO’s contract with the pack house should be revised so that; (a) delivery calls can be made by either the pack house or by EFO during specified periods and with reasonable notice, and (b) grading procedures are fully transparent and ensure traceability so that losses caused by poor quality can be internalised to members who deliver inferior produce. In addition, it is important that prices be negotiated at the beginning of each season and that the contractual parties have recourse to pre-agreed facilitators and an arbitrator to resolve disputes on price and quality. A written contract is recommended to support these more complex terms, with the proviso that the contract is explained to current and prospective members, and that growers are fully informed of their rights and obligations. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2008.

Organic farming is increasingly viewed as a plausible production system for sustainable agriculture for smallholder farmers. However, there is not enough scientific evidence and knowledge to advocate certified organic farming for African smallholder farmers who face several constraints related to production, storage and marketing. The potential for organic farming for smallholder farmers, faced by these constraints, is not clearly defined. As a result, this study set out to evaluate the production potential of organic agriculture among three smallholder farmer groups. Production questions were used to investigate and evaluate the potential for organic agriculture among three smallholder farmer groups and constituted the following subproblems: · What crops can be grown in the three study areas, based on climatic data ? · Do farmers concur that these are the most suitable potential organic crops? · How useful do the farmers find the decision making tool? · What constraints threaten commercial production of the identified crops for these farmers? Participatory methodologies that included the use of Force Field Analysis, discussions and workshops were used to identify organic production constraints related to production decisions. Farmers faced constraints related to finance, capacity enhancement, technical knowledge, fencing, irrigation, and a lack of, or inappropriately trained extension officers. As a response to identified production constraints, a decision support tool was developed. Natural resource data, including climatic and agronomic data, was used to create a specially calibrated Microsoft Excel spreadsheet interface that functions as an empirical organic production decision support tool for organic and aspirant organic smallholder farmers, by providing answers for farmer-prioritised production constraints. A list of potential crops for each of the three study areas was subjected to a series of checks against suitability for climate and disease conditions and nutrient requirements. A limited supply of manure, to meet the enormously high requirements for organic production in the poor soils of these areas, is the major constraint to exclusive organic production and renders certified organic production difficult and unsustainable. Farmers disagreed with some of the crops on the list, arguing that familiar crops were rejected by the model, but they were excited by the prospects for production of “new” crops suggested as suitable by the decision support tool, but not yet grown in the study areas. End users welcomed the model and expressed the opinion that it would be useful in decision making related to organic crop production. The study concludes that, although a number of agronomically-suitable crops can grow in the study areas, organic production is restricted by rather high manure requirements, lack of compost making skills, lack of knowledge on natural pest and disease control and poorly nourished soils, leading to poor yields. The rainy season creates a disease-supporting environment, rendering organic farming risky for rain-fed smallholder farming. Risk in certified organic farming for smallholders was further exacerbated by a hardly inconducive policy environment that low literacy levels exist amongst farmers. This study is innovative for three reasons. First, farmers were true participants and drivers of the research. Second, trans-disciplinary expert seminars were attended by experts from different disciplines who critiqued the conceptualisation, design, and implementation of the study. Third, the development of a practical decision-support tool shows innovation towards solving complex smallholder farmers decisions. If organic farming is to be promoted, commitment by government is needed in order to establish policy and legislation on organic farming to direct and govern training, information provision and marketing. Intensive training and knowledge building of organic production for smallholder farmers and extension officers is critical. There are also agroecological risks associated with organic farming for smallholder farmers. Recommendations for future research include comparison between organic agriculture and conventional agriculture, where sustainability of certified organic farming and economic viability can be conducted in the South African context. Improvement of the decision making tool will require involving information technology specialists so that the tool can be installed in community centres, extension offices and other accessible places for farmers and others. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2008.

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.

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.

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.