Thesis (MScAgric)--Stellenbosch University, 1999. / ENGLISH ABSTRACT: Historically, commercial agricultural research in South Africa has been state supported, but due to recent political changes in South Africa this is changing. The political transition has been accompanied by changing economic policies, causing a tightening of public funds allocated to agricultural research. In 1992 the Agricultural Research Council was formed, primarily to enable greater industry involvement in research as a result of the expected long term budget cuts in publicly funded research. As a result there has been an increased recognition of the need to evaluate research in terms of the economic returns to investment so that decision makers have hard evidence on which to prioritize their investments. This study employs the well known production function approach to evaluate the economic benefits of publicly funded research in the South African deciduous fruit industry. In reporting the results of the research the study proceeds from an overview of the deciduous fruit industry, as well as an analysis of the structure of deciduous fruit research in South Africa. This is followed by a description of the economics of research expenditure, a description of ex post methods of evaluating the economic benefits of research, and the manner in which the data for the analysis was collected. The analysis suggests there is a statistically significant relationship between research and development and industry output as well as industry prices and output. However the results should be interpreted with care, and more effort should be made to ensure that required data are gathered. Nevertheless, the results show that increased research expenditure m the industry is justified. / AFRIKAANSE OPSOMMING: Histories gesien is kommersiele landbou-navorsing in Suid Afrika deur die owerheid ondersteun, maar as gevolg van die onlangse politieke veranderinge in Suid Afrika is hierdie toedrag van sake besig om te verander. Die politieke oorgang in die land het gepaard gegaan met 'n verandering in ekonomiese beleid, wat 'n inkorting van owerheidsbefondsing aan die Landbounavorsingsraad meegebring het. Hierdie Raad is in 1992 gestig, met die primere doe! om grater privaatsektor betrokkenheid in navorsing vanuit die betrokke sektor te verseker, as gevolg van die verwagte onttrekking van owerheidsteun. As gevolg hiervan, is daar nou 'n toenemende erkenning aan die behoefte om navorsingsprojekte te evalueer in terme van die ekonomiese opbrengs op sulke investering, sodat besluitnemers geldige bewyse het waarvolgens bestedingsprioriteite gemaak kan word. Hierdie studie gebruik die bekende produksie-funksie benadering om die ekonomiese voordele van navorsing in die Suid-Afrikaanse sagtevrugte bedryf te evalueer. Die studie begin met 'n oorsig oor die sagtevrugtebedryf, insluitend 'n analise van die navorsingstruktuur wat tans heers. Bogenoemde word gevolg deur 'n beskrywing van die bestaande ex post metodes om ekonomiese voordele van navorsing te evalueer, sowel as die wyse waarop die data vir die analiese ingesamel is. Die resultate wys dat daar 'n beduidende statiese verhouding is tussen besteding op navorsing en pryse en die opbrengs behaal deur produsente in die bedryf Hierdie resultate moet egter met sorg gelnterpreteer word, en meer moeite moet gedoen word om te verseker dat die nodige data ingesamel word. Nietemin toon die resultate dat verhoogde navorsingsbesteding in die bedryf geregverdig is

Thesis (PhD(Agric) (Agricultural Economics))--University of Stellenbosch, 2011. / ENGLISH ABSTRACT: This dissertation is an analysis of dairy production in the Midlands district of KwaZulu-Natal. The analysis of agricultural production generally ignores undesirable outputs that are produced alongside desirable outputs. This research attempted to integrate a model of nitrate leaching from dairy production into a multiple input/output representation of the production technology, together with the analysis of technical efficiency. Estimation of both technical efficiency and environmental efficiency were done following the parametric econometric stochastic frontier (SFA) and the nonparametric mathematical programming data envelopment analysis (DEA) approaches. The study used unbalanced panel data from 37 individual highly specialized dairy farms for the period 2000 to 2007 and totals to 2130 observations. Production functions for the three outputs; milk, animals and farm produced feed, were fitted as a simultaneous system to model the farms’ production activities for the econometric SFA estimation of technical efficiency. A single equation reduced form was fitted as a frontier to allow for the estimation of the relative efficiencies of the individual farms. The results showed that with data this detailed it was possible to refine the model until it fits very tightly. Indeed, in the gross output model that includes cows, there was nothing left to call inefficiency and what was clearly a frontier becomes a mean response function. Technical efficiency was further calculated using the nonparametric DEA approach using the same dataset. The estimation of environmental efficiency was done using both SFA and DEA approaches. Undesirable emissions of nitrate were represented within the models by calculating nitrogen surplus (kg/ha) for each farm. This nitrogen surplus value was based on the intensity of the use of nitrogen containing inputs and the nitrogen content of marketable products specific information and from farm data which were used to calculate a farm nitrogen balance. The stochastic estimation of environmental efficiency used the same data that were used for the estimation of technical efficiency. However, for the DEA calculation of environmental efficiency, a balanced cross-section dataset for 34 farms participating in a pasture-utilization programme was used. This dataset was used because it had quantities of nitrogen fertilizer and other nitrogen containing inputs. Results indicate that there was minimal “over-usage” (over production) of milk thus reducing milk output alone will not lead to improved environmental efficiency. Farm size, herd size, and quantity of nitrogen fertilizer applied, present the best scope of reducing nitrogen surplus thus improving environmental efficiency of the dairy farms. Reducing imported feed by relying more on home grown feed can also help reduce nitrogen surplus. This is feasible because dairy farmers in the KwaZulu-Natal Midlands can produce most of the feed on farm. In summary, to obtain environmental efficiency milk production would have to be reduced by 80 litres per hectare; farm size by 73.69 ha; herd size by 33 cows, nitrogen fertilizer application by 74.3 kilograms per hectare; and imported feed by 13.4 kilograms of dry matter per hectare. The adjustments that would be required if environmentally inefficient farms were to adopt best practice technology and move towards their environmental production frontiers indicate that the production of pollutants (nitrogen surplus) could be reduced at negligible cost to milk production. The positive correlation between technical and environmental efficiencies indicates that improving environmental efficiency could be associated with improvements in technical efficiency. Thus, policies aimed at improving both efficiencies could have substantial rewards. / AFRIKAANSE OPSOMMING: In hierdie tesis word suiwelproduksie in die Middellande van KwaZulu-Natal van nader beskou. Met die ontleding van landbouproduksie, word ongewenste uitsette wat saam met gewenste uitsette geproduseer word, gewoonlik oor die hoof gesien. Hierdie navorsing poog om ’n model van nitraatvrylating uit suiwelproduksie in ’n veelvuldige inset/uitset verteenwoordiging van die produksietegnologie, te integreer by die analise van tegniese doeltreffendheid. In opvolging van die benaderings tot die parametriese ekonometriese stogastiese front (SFA) en die omvattingsanalise ten opsigte van die nie-parametriese matematiese programmeringsdata, is beramings van sowel tegniese as omgewings doeltreffendheid gedoen. In die studie is gebruik gemaak van paneeldata van 37 individuele hoogs gespesialiseerde melkplase vir die tydperk 2000 tot 2007, wat altesaam 2130 waarnemings beloop. Produksiewerksaamhede vir die drie uitsette; melkproduksie en diere- en plaasgeproduseerde voer, is as ’n gelyklopende stelsel ingepas om die plase se produksiewerksaamhede vir die ekonometriese SFA-beramings van tegniese doeltreffendheid weer te gee. ’n Enkele vorm om gelykmaking te verminder is daargestel as ’n front vir die beraming van die relatiewe doeltreffendhede van die individuele plase. Die resultate het bewys dat data van hierdie omvang dit moontlik maak om die model sodanig te verfyn dat dit net-net inpas. By die bruto uitset-model waarby koeie ingesluit is, was daar inderdaad niks wat op ondoeltreffendheid gedui het nie en wat eers ’n duidelike front was, het ’n betekenisvolle responsfunksie geword. Voorts is tegniese doeltreffendheid bereken deur aanwending van die nie-parametriese DEAbenadering, deur gebruik te maak van dieselfde datastel. Die beraming van omgewingsdoeltreffendheid is gedoen deur gebruikmaking van sowel SFA- as DEA-benaderings. Ongewenste nitraatvrylatings is in die modelle gevind deur die stikstofsurplus vir elke plaas te bereken (kg/ha) Die waarde van hierdie stikstofsurplus is gebaseer op die intensiteit van die gebruik van stikstofbevattende insette en bepaalde inligting oor die stikstof-inhoud van bemarkbare produkte, sowel as van plaas data, wat gebruik is om ’n stikstofbalans vir die plaas te bereken. Dieselfde data wat aangewend is vir die beraming van tegniese doeltreffendheid, is gebruik om die stogastiese beraming van omgewingsdoeltreffendheid te bepaal. Vir die DEA-berekening van omgewingsxii doeltreffendheid, is egter ’n gebalanseerde kruisseksie datastel gebruik vir 34 plase wat aan ’n weidingsbenuttings-program deelgeneem het. Die bepaalde datastel is gebruik omdat dit dosisse stikstofbemestingstof en ander stikstofbevattende insette bevat het. Resultate het op minimale “oorgebruik” (oorproduksie) van melk gedui en daarom sal die vermindering van slegs die melkuitset nie lei tot verbeterde omgewingsdoeltreffendheid nie. Plaasgrootte, kuddegrootte en die dosis stikstof wat toegedien is, verskaf die beste beeld van verminderde stikstofsurplus, wat dus tot verbeterde omgewingsdoeltreffendheid op melkplase lei. Die vermindering van ingevoerde voer deur meer op plaasgeproduseerde voer staat te maak, kan ook meewerk om stikstofsurplus te laat daal. Dit kan gedoen word omdat melkboere in die Middellande van KwaZulu-Natal die meeste van die voer op die plaas kan produseer. Ter samevatting kan gesê word dat om omgewingsdoeltreffendheid te bereik moet melkproduksie met 80 liter per hektaar verminder word, plaasgrootte met 73.69 ha, kuddegrootte met 33 koeie, stikstofbemestingtoediening met 74.3 kilogram per hektaar en ingevoerde voer met 13.4 kilogram droë materiaal per hektaar. Die aanpassings wat nodig sal wees indien omgewingsdoeltreffende plase beste praktyk-tegnologie sou aanvaar en sou aanbeweeg na hulle omgewingsproduksiefronte, dui daarop dat die produksie van besoedelende stowwe (stikstofsurplus) verminder kan word teen geringe koste aan melkproduksie. Die positiewe verband tussen tegniese en omgewingsdoeltreffendhede, dui daarop dat die verbetering van omgewingsdoeltreffendheid, in verband gebring kan word met verbeterings in tegniese doeltreffendheid. Beleid wat op verbetering van beide doeltreffendhede gemik is, kan daarom aanmerklike voordele inhou.

The first aim of this research was to examine the current financial technologies, outreach and fmancial viability over time (from 1997 to 2002) of four MFOs providing agricultural, microbusiness and consumption credit in KwaZulu-Natal (KZN), South Africa (SA). Understanding the limitations and advantages of these financial technologies could facilitate institutional reform to improve access by low-income people to viable formal financial services in KZN. The second aim of this study was to estimate factors that affect the credit rationing decision and applicant loan default at the MFO providing consumption credit (MFOI), and the factors affecting default on medium-term agribusiness loans provided by MF02 which was one of the agricultural MFOs. These analyses were intended to help to improve client selection procedures and to reduce loan default rates at these MFOs. Study results show that institutions that finance specifically agricultural activities could improve the quality of their services by providing better access to branches and reducing loan approval times through improved screening and administrative procedures. Making financial services (consumption and production loans) available to both non-agricultural and agricultural sectors would also help to reduce portfolio risks resulting from the covariant incomes of small farmers. Savings mobilisation should also be considered, although institutions need to develop appropriate capacity to handle savings before mobilising deposits. The study shows too that the rural poor in SA have the capacity to save (for example, the average number of active savings accounts held by individuals at MF02 rose to 474 052 in 2002). Study results also suggest that the provision of both savings and loan services helps an institution to reduce borrower transaction costs in accessing financial services and means that savings can serve as a form of collateral and borrower information for lenders. Lenders need to charge interest rates that reflect the true cost of lending in order to cover costs, given that small loans to the rural poor in SA are risky and costly to administer. Charging a suitable interest rate, however, is not a sufficient condition for achieving financial self-sustainability. Reducing high arrears through stricter loan contract enforcement will also promote the financial self-sustainability of MFOs in SA. Moveable assets, such as vehicles and equipment, were not effective sources of collateral due to the high costs of attaching these assets in rural parts of KZN. Cessions on sugarcane crops were often constrained by flaws in collection mechanisms, where borrowers could deliver sugarcane to sugar mills on non-borrower quota numbers. Secure and transferable property rights were important preconditions if land was to have value as collateral. Collateral substitutes such as joint liability mechanisms were less effective when lending to large farmer groups (30 - 60 members) compared with small groups (4 - 6 individuals) of micro-entrepreneurs operating in urban areas in SA. Costly legal action to recover debts further undermined borrower accountability for loan repayment and thus did not discourage morally hazardous activities. Reputational capital was an integral part of the financial technology successfully used by MFO1, and could be more effectively developed by agricultural lenders in SA if they strictly enforce the policy of denying borrowers access to future funds if they default on previous loans. Based on data over the period 1998 to 1999, less contactable borrowers that were employed in sectors with a high likelihood of retrenchments, with higher debt-to-income ratios and with more defaults and payment profile arrears, were more likely to be credit-rationed by MFO1 staff. Applicant contactability was another key part of MF01's monitoring intensive financial technology, but constrains MFO1 from broadening its financial services to small businesses if these are not easily contactable. Credit bureau information on previous loan default was critical in this microfinance market where it is difficult to obtain formal collateral. The policy implication is that lenders need to share default information and credit bureaus need to correctly capture this information. Borrowers with higher debt commitments, previous loan defaults, who were less contactable and who worked in sectors where employment was less secure, were more likely to default at MFO1. Low-income borrowers had lower levels of liquidity that reduced their ability to repay debt. The influence of contactability in loan repayment highlights the trade-off between monitoring-intensive and collateral-intensive technologies. Although MFO1 used reputational capital as a collateral substitute, the imperfect nature of this collateral type necessitated intensive client monitoring. Lender MFO1 also needed a well-diversified portfolio across employment sectors to reduce the impact of systemic income risks. The impact of previous credit history on loan repayment suggests again that this information can be an effective collateral substitute if information is shared between lenders, and the rule of not granting credit to defaulters is strictly enforced. Based on data over the period 1993 to 1994, borrowers with smaller loans (lower asset bases and smaller businesses), lower own equity contributions, engaged in contract ploughing and cartage or broiler production ventures, with lower liquidity and with no previous borrowing experience, were more likely to default of MF02's medium-term agricultural loans. Larger borrowers had well-diversified asset bases that enabled them to better withstand negative income shocks and reduced the need to divert funds for loan repayment to current consumption. Improved liquidity generated from other sources of income (such as wage remittances and other business ventures) also improved loan repayment ability. Lenders thus need to focus on all sources of income, not just on the income generated by the investment project for which finance is provided, in assessing client repayment capacity. Ploughing contractors probably need closer monitoring to ensure that equipment is properly maintained and that sufficient income can be generated from the business to repay loans. These contractors could also be encouraged to diversify into contract transport activities that provide more regular income. Given the increased competition and periodic outbreak of disease in the chicken industry when the study was conducted, borrowers should be encouraged to diversify to reduce price risk. Increasing the owner's equity stake in the investment, while a second-best option, may be a suitable alternative where collateral is ineffective in enforcing loan contracts. Borrowers that had an established record with the lender tended to repay their loans, again highlighting the importance of reputation in a borrower-lender relationship. / Thesis (Ph.D.)-University of Natal, Pietermaritzburg, 2003.

The objective of this study is to research how the slow process of land redistribution in South Africa can be accelerated, given the urgency of land resettlement. A subprogramme of redistribution, Land Redistribution for Agricultural Development (LRAD), was launched by the Minister of Agriculture and Land Affairs in A1.}gust 2001. A redistribution project goes through five phases (refer Appendix A for LRAD project cycle). Each phase has different steps, which is an LRAD project cycle. Firstly, the thesis analyses the project cycle - the aim was to establish how long it would take a farmer to obtain ownership of land and how the process can be expedited to settle more farmers. Secondly, it studies the role and views of stakeholders involved in the programme (such as NGOs, financial (nstitutions, design agents and governmental departments). Thirdly, it examines the performance and progress made since the implementation of the programme In KwaZulu-Natal. Lastly, the study focuses on problems and general concerns regarding the policy. Some policy recommendations on the need and performance of land redistribution in South Africa are made. The LRAD project cycle could take at least nine months or more. During this period beneficiaries cannot buy land from auctions, while some landowners are reluctant to go through with this long process, because it may not result in a land sale. Engaging property owners in the process can accelerate land delivery. In addition, government must try to streamline its policies and procedures, so that landowners who wish to sell do not perceive it to be such a serious disadvantage to engage in selling to redistribution applicants. The LRAD programme started slowly in KwaZulu-Natal and by the end of 11 April 2002, the DLA had received only 105 applications for the grant. By May 2003, out of 1 300 applications only 169 had been transferred since LRAD started. According to experience by Ithala Bank, many projects are delayed and sales collapse. Long delays are a major problem, because many projects are approved but few transferred. A recommendation is that commercial banks be given a chance to approve LRAD grants, contingent on loan approval. Extending approval powers to commercial banks has the advantage of identifying creditworthy projects quickly and accurately, as private lenders are putting their own resources at risk. Some of the problems and concerns identified around LRAD are: disposal of state land and unresolved land-claims. The Department of Land Affairs (DLA) needs to integrate the new programme with other programmes of land reform, especially in cases where different communities are competing for the same land, but through different programmes. Another problem is that the programme has missed market opportunities because landowners are reluctant to sell due to delays and uncertainty. The DLA has consistently been under-spending their budget, leading to their budget being cut. Financial assistance to farmers with no own collateral is insufficient. The farmers are not being placed in a financial position to purchase a viable farm and they will experience serious cash flow problems if maximum loans from the Land Bank are accessed. The Department of Agriculture (DoA) has postponed the training programme several times and to date it is not yet implemented. It is highly recommended that the issue of mentorship be addressed, as a matter of urgency. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

This dissertation investigates the hypotheses that high transaction costs contribute to relatively low participation rates in livestock leasing in South Africa; and that specific contractual characteristics contribute to minimising total transaction costs of livestock leasing contracts in South African commercial agriculture. Many emerging livestock farming businesses may value the option of leasing-in livestock. Likewise, many established livestock farming businesses are currently undergoing expansion (especially dairy farms) and may also value the option of leasing-in livestock. A reduction in transaction costs and an improvement in efficiency of the livestock lease market could prove beneficial for emerging/expanding livestock farms. Likewise, investors, who anticipate competitive rates of return from investments in livestock, may value the option of owning and leasing-out livestock to suitable farm businesses. Transaction costs in livestock rental contracts include costs of information about contracts, costs of monitoring and enforcing contracts, costs of finding party members to contract with, the costs of risk of an agreement being terminated due to exogenous factors such as land claims, the risk of incomplete contracts and the costs of risk bought about by adverse selection and moral hazard. The magnitude of transaction costs incurred by participants of a livestock leasing contract are a function of how costs and risks are shared between the lessee and lessor, the inclusion of specific contractual clauses, the type of leasing contract, the relationship between party members and additional contractual characteristics. A census postal survey of two populations of livestock farmers, namely members of the Jersey Breeders' Societies of South Africa, was conducted during April and May 2007 to collect data on farmers' perceptions of and their participation in livestock rental contracting agreements. Elicited data was analysed using a multinomial discriminant analysis to identify factors that discriminate between non-participants of the livestock leasing market, lessees of livestock and lessors of livestock. Ordinary least squares regression was used to identify preferred characteristics of livestock lease contracts. Results of the first analysis suggest that a livestock leasing market does exist in South Africa; however, the market is characterised by high transaction costs. Non-participation in livestock leasing markets amongst survey respondents is partially attributable to the high perceived costs of obtaining market information and establishing and enforcing livestock lease agreements. Findings of the second analysis show that survey respondents, on average, showed a preference for formal agreements, leasing commercial animals for shorter periods and keeping detailed inventories. It is concluded that providing livestock farmers with information about important characteristics of successful livestock lease agreements may reduce transaction costs, and thus reduce market inefficiency in the market. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.

Farmworker equity-share schemes were initiated by the private sector in the Western Cape region of South Africa in the early 1990's as a method of redistributing farm assets to land reform beneficiaries while maintaining the viability of commercial farming operations. This study set out to identify the institutional characteristics of successful farmworker equity-share schemes in South Africa, and to discern a set of best institutional practices that will likely promote the success of future equity-share schemes. A detailed study of nine commercial farming ventures involving partnerships with farmworkers was undertaken in the Western Cape during November 2001 to explore relationships between their institutional arrangements, worker empowerment, management quality and performance. Farmworker equity-share schemes (FWES) have received both positive and negative publicity. This thesis adds to the debate surrounding these land reform projects by comparing the results of case studies conducted by the Surplus People's Project in 1998 with more recent (2001) case studies. The latter suggest that many of the concerns raised by the Surplus People's Project, such as beneficiaries' participation and expectations, power relations between management and worker-shareholders, skills transfer and labour relations, have been addressed. The dissertation also highlights those issues that remain areas of concern, for example, beneficiaries' tenure security, literacy levels amongst worker shareholders, skill and wage differences between men and women, and exit procedures. A cluster analysis of variables measuring four constructs of a successful farmworker equity-share scheme, viz. sound institutional arrangements, effective worker empowerment, competent management and good performance, revealed positive relationships between these constructs. Best institutional practices identified by the analysis suggest that farmworker equity-share schemes should be operated as (or like) a company with voting and benefit rights proportional to individual shareholdings, but with restrictions on certain share transactions to prevent free-riding by non-workers and the loss of creditworthiness through sudden outflows of equity and managerial expertise. However, this positive relationship between best institutional practices and enterprise performance is dependent on effective worker empowerment (e.g. skills transfer and gender representation), good governance (e.g. external auditing) and competent management (e.g. schemes to reward worker performance and to resolve disputes). From a policy perspective it is recommended that public land reform grants should be awarded only to beneficiaries of FWES that have been co-financed by a bank or reputable investor as this ensures a thorough financial assessment of the project, and only to projects that can demonstrate a history of good labour relations. It is also recommended that the Department of Land Affairs should consider extending its grants to regular but seasonal farmworkers who wish to participate in an established project. While farmworker equity-share schemes may not provide all of the answers to land reform they have an important role to play in redistributing wealth and de-racialising commercial agriculture in South Africa. / Thesis (M.Agric.Mgt.)-University of Natal, Pietermaritzburg, 2003.

The productivity of small-scale sugarcane contractors affects not only their own profitability and sustainability, but that of other stakeholders as well, such as the small-scale sugarcane farmers they contract to and the sugar mills these farmers supply in the form of improved services to growers and a steady flow of sugarcane to mills. This study firstly illustrates the organisational structures of the sugar industry. It then aims to identify constraints that inhibit the performance (such as timely haulage operations and cost effectiveness) of small-scale sugarcane contractors in the small-scale sugar industry of KwaZulu-Natal (KZN). To obtain this information, interviews were conducted with 124 randomly selected contractors from 11 mill group areas in KZN between September 2002 and July 2003. Case studies (concerning institutional issues such as organisational structures) of contractors, sub-committee members, and development officers were also conducted in eight mill group areas of KZN between September 2002 and February 2004. Sample statistics and case study results show that contractors face institutional constraints (work allocation limitations, lack of performance incentives and high transaction costs, such as negotiation costs, the risk of losing work and contract default risk), cash flow problems, poor physical infrastructure and a lack of labour. It is concluded that the promotion of a more competitive small-scale sugarcane contractor sector will alleviate many of the problems (such as work allocation limitations) faced by small-scale contractors, while providing incentives for the provision of higher quality and cheaper services to small-scale sugarcane growers. The study also examines the attributes of small-scale sugarcane contractors that affect their quality of service as perceived by small-scale sugarcane growers (SSGs) within current institutions. Information is drawn from the same sample survey, although ten observations from the Umfolozi area are excluded because they were not part of the sample drawn from population lists. Further interviews were conducted in the same time period with SSGs for information on contractor service quality (transport and general service timeliness, meeting of daily ratable delivery requirements, low downtimes, good staff management, and minimal disagreements on service terms). Results show that factors affecting a contractor's perceived service quality include gender, training, the quality of information used (industry focused information sources such as the South African Sugar Association Experiment Station (SASEX) and the Ingede magazine, or general sources such as the radio), and sugarcane tonnage transported (size of business). Being a male contractor and having a larger business positively influence service rating as perceived by SSGs. The importance of the quality of information used and increased training levels highlights the need for the continual provision of relevant information and training for sugarcane contractors by extension services (government, SASEX and milling companies). The study also identifies the need for further research on the issue of contractor machinery costs. In a competitive sector contractors would need to have adequate information on own costs in order to compare these with contract rates in the market. Further guidance by extension staff and other industry advisors (e.g. development officers) in the accessing of adequate finance may also be necessary. Government has a role in strategising the creation of land markets to promote efficient use of resources (land), while providing improved rural infrastructure (mainly district roads). Government also needs to ensure unbiased tribal court rulings, review the impacts of minimum wage legislation on contractors sourcing labour, and provide protection for those competing for work. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

The objectives of this thesis were firstly, to review existing literature in order to identify broadly accepted and measurable indicators of the possible causes of poverty and the resulting symptoms. Secondly, to gather baseline information from a group of land reform beneficiaries in order to identify the different dimensions of poverty affecting the current and future well-being of these households. Thirdly, to undertake empirical analysis to assign these households to a small number of groups exhibiting different symptoms of poverty and then explain these differences in terms of their possible causes. A census survey of 38 land reform beneficiary households - members of a Communal Property Association (CPA) established to purchase Clipstone, a 630 hectare subdivision of the farm Sherwood in the midlands of KwaZulu-Natal - was conducted in May 2002 to gather data on poverty indicators. Principal Component Analysis was used to construct an index of the standard of housing, which was then combined with variables measuring other symptoms of poverty (income, wealth and health) in a Cluster Analysis of the households. This revealed five clusters representing four distinct groups of poverty; households relatively income and asset rich, income rich but asset poor, asset rich but income poor and households with the lowest incomes and assets. Linear Discriminant Analysis was then used to distinguish the households that were relatively income and asset "rich" from those that were relatively income and asset poor, and those that were relatively income poor but "asset rich" from those relatively asset poor but "income rich". The main distinguishing indicators were found to be gender of the household head, family size, dependency ratio, education and access to markets. These findings show that there is a need to increase child welfare grants as pension earnings become less effective (due to decreasing life expectancy and high levels of dependence on pensions as a source of income) in the short run. In the long run, there is a need for increased education and vocational training - especially for women along with better access to transport, jobs and banking facilities (to mobilise savings). / Thesis (M.Agric.Mgt.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

In this study, a household resilience score was developed as a measure of rural household resilience to identify households with low resilience and to measure progress towards improved household resilience. Resilience is the ability of households to cope with risk. The motivation for the study originated from the first objective of the Framework of African Food Security (FAFS) of improved household risk management, and the indicator of progress towards this objective – proposed by the FAFS - a resilience score. A review of the literature indicated that the assets owned by a household could be used as a proxy for resilience. The household component of the Demographic and Health Surveys for six African countries was used to develop and apply the resilience score. The score was estimated using an index of assets owned by the household and information regarding household access to certain services and characteristics of the dwelling. There is disagreement in the literature concerning the best method of constructing an asset index in terms of how to weight the variables included in the index. As a result, four methods of constructing an index of socio-economic status (SES) were selected for comparison in this study: two linear principal component analysis (PCA) techniques; a non-linear or categorical principal component analysis (CATPCA) method; and a simple sum of assets technique. The results from the application of each of the four indices to the country data and the resulting classification of households into quintiles of SES were compared across several assessment criteria. No single method out-performed the others across all the assessment criteria. However, the CATPCA method performed better in terms of the proportion of variance explained by the first principal component and the stability of the solution. The results showed that for all methods, SES was not evenly distributed across the sample populations for the countries analysed. This violates the assumption of uniformity implied when using quintiles as classification cut-off points. As an alternate to the quintile split cluster analysis was applied to the SES scores derived for each country. The classification of households into SES groups was repeated using k-means cluster analysis of the household SES scores estimated by the CATPCA method for each country. The results showed that a greater proportion of households fell into relatively lower levels of SES, which is in contrast to the assumption of uniformity of SES made when using the quintile cut-off approach. Cluster analysis better reflected the clustered nature of the household data analysed in this study, compared to the quintile cut-off method. In a final analysis, the index of SES along with k-means cluster analysis was applied to household data from two different time periods for five African countries to determine whether the resilience measure was able to detect changes in household SES between the two periods and, therefore, whether the tool could be used to monitor changes in household resilience over time. The results showed evidence of adjustments in SES over time: there were differences in the per cent of households allocated to the clusters of SES between the two periods. Using the CATPCA index and k-means cluster analysis, Egypt, Uganda and Mali showed an increase in the per cent of 'poor' households, while for Kenya and Tanzania there was a reduction in the per cent of households allocated to the first cluster between time periods: the decrease for Kenya from 2003 to 2008 was as much as 13 percentage points. The observed changes in SES were then compared to changes in national poverty estimates reported in the literature. The resilience score developed in the study displayed an ability to track changes in household SES over time and could be used as a measure of progress towards improved household resilience. As such, the resilience measure could be valuable to policy-makers for monitoring the impacts of policies aimed at improving household resilience. Future research is recommended before the reliability of the resilience measure developed here can be fully ascertained. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2011.

Many authors have cited the relatively high unemployment rate as the most severe economic problem facing South Africa today. At the same time, government institutions claim that the agricultural sector can help solve the high unemployment rate, as this sector has the potential to create employment for a large number of unemployed South Africans. These institutions do not elaborate on how the sector will provide so many jobs. Published empirical studies on the South African (SA) agricultural sector have recommended ways in which policy-makers may achieve their goals of creating employment. However, most studies on labour considered the entire agricultural sector, whereas this study focuses on a sub-sector, namely the SA sugarcane sector. The study aims to analyse the potential of the sugarcane SA sector to create employment by estimating long- and short-run price (wage) elasticities of labour demand for large-scale sugarcane farms on the South Coast, in the Midlands and in Tugela/Zululand during 1984/1985-2008/2009. Using panel data, two models are estimated by Ordinary Least Squares (OLS), Model 1 capturing labour use intensity and using “labour units employed per 1000 tonnes of cane cut” as the dependent variable, while Model 2 captures the total labour units demanded by large-scale sugarcane farmers. Only Model 2 is estimated using simultaneous equations as past studies indicate that labour use intensity may be analysed using single-equation models. For Model 1, the estimates of the long-run wage elasticities compared to the short-run wage elasticities are similar and around -0.5, -0.17 and -0.33 for the South Coast, Midlands and Tugela/Zululand regions, respectively. The wage elasticity estimates for Model 2 in the short-run were -0.34, -0.24 and -0.17 and in the long run -0.61, -0.42 and -0.30 for the South Coast, Midlands and Tugela/Zululand, respectively. The two econometric techniques (OLS and 3SLS) yielded similar wage elasticities. Results suggest that all labour demand estimates were wage inelastic, with the South Coast having a relatively greater response of labour demand to wage rate changes than the other two regions. Inelastic demand estimates for labour in all three regions may be due to the perennial, long-term nature of sugarcane and farmers taking time to decide how to respond to changes (hikes) in the price of labour. The decline in the demand for labour by large-scale sugarcane farmers due to an increase in real wage rates raises questions about the appropriateness of labour laws and minimum wage iii legislation that have increased the real cost of farm labour in the large-scale sugarcane sector of KZN. In order to reverse the rising farm labour unemployment trend in South Africa, the study recommends that policy-makers could rather adopt more flexible labour market regulations (for example, those relating to the hiring and dismissal of workers) that would reduce real labour costs and encourage local farmers to employ more labour on sugarcane farms. Furthermore, the land under sugarcane proved to be an important determinant of the demand for labour by large-scale sugarcane farmers and hence policies regarding land reform need to be revised and implemented more proficiently. Future research could focus on the skill-level of those workers who are affected the most following an increase in minimum wages and possible reasons why the KZN sugar industry is losing land to other land uses. / M.Sc.Agric. University of KwaZulu-Natal, Pietermaritzburg 2013.