Thesis (PhD (Agric) (Agricultural Economics)--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: A complex and volatile decision-making environment and constant pressure on product prices, due to the cost-price squeeze, complicates decision-making for grain farmers in the Western Cape. Furthermore, available alternative crops and cultivation practices are limited due to local soil and climatic conditions. The farm system itself is complex due to the interdependence of a variety of factors and the synergy resulting from specific sequences of cash and pasture crops. The aim of this research project was to establish a method that would contribute to identifying strategies to advance the profitability of grain production. Research in the grain industry is traditionally specialised within specific fields, such as, agronomy, soil science, entomology, agricultural economics, etc., causing a fragmentation of knowledge. To ensure that the systems nature of a complex farm is accommodated, various related research domains should be acknowledged and incorporated. The use of expert group discussions, as a research method, is suitable, firstly, for gathering information in a meaningful manner and, secondly, to stimulate individual creativity by presenting alternative perspectives provided by various participating experts. In support of expert group discussions, simulation models in the form of multi-period whole-farm models were developed. This type of modelling supports the accurate financial simulation of farms, while the user friendliness and adaptability thereof can accurately accommodate typical farm interrelationships, and quickly measure the financial impact of suggested changes to parameters. Suggestions made by experts during the group discussions can thus be quickly introduced into the model. The financial implications are instantly available to prevent further exploration of non-viable plans and to fine-tune the viable plans. Participants in the group discussions represent fields of expertise such as agronomy, soil science, entomology, plant pathology, the agricultural chemical industry, agricultural mechanisation. Also represented are professionals such as extension officers from local agribusinesses, local producers and agricultural economists. The dynamics of the group discussions are supported by each participant’s specific strengths and perspectives. For each relatively homogeneous production area of the Western Cape, a typical farm budget model was developed, which served as the basis for the group discussions. The budget models measure profitability in terms of the IRR (internal rate of return on capital investment) and affordability in terms of expected cash flow. For the Swartland, the homogeneous areas identified were Koeberg/Wellington, the Middle Swartland and the Rooi Karoo, and for the Southern Cape, the homogenous areas identified were, the Goue Rûens, Middle Rûens and Heidelberg Vlakte. A model of a typical farm in the Wesselsbron area was developed for comparison with the Western Cape farms. For each area the expected impact of climate change, fluctuating product and input prices, and the possible impact of partial conversion to bio-fuel production were evaluated in terms of expected impact on profitability. Various area-specific strategies were identified that could enhance the profitability of grain production: most of the strategies focused on optimising machinery usage and expanding or intensifying the livestock enterprise. The repeated successful use of the model in support of the expert groups in all the chosen study areas illustrates the value thereof for identifying and evaluating plans to increase the profitability of small grain production. / AFRIKAANSE OPSOMMING: 'n Komplekse en wisselvallige besluitnemingsomgewing, en konstante druk op produkpryse weens die koste/prys knyptang bemoeilik besluitneming op graanplase in die Wes-Kaap terwyl die beskikbare alternatiewe verbouingsgewasse en -praktyke beperk is weens plaaslike grond en klimatologiese eienskappe. Die boerderystelsel self is kompleks weens die interafhanklikheid van die dele daarvan en die sinergisme verkry deur byvoorbeeld die spesifieke orde van opeenvolging van kontant- en weidingsgewasse in die wisselboustelsel. Hierdie navorsingsprojek se doel is om 'n werkwyse te vestig wat die identifisering van strategieë te ondersteun wat moontlik die winsgewendheid van graanproduksie kan bevorder. Navorsing in die graanbedryf is tradisioneel gespesialiseerd binne 'n spesifieke navorsingsveld soos agronomie, grondkunde, entomologie en landbou-ekonomie. Dit gee daartoe aanleiding dat elk van hierdie velde op dimensies van die boerderystelsel fokus asof dit in isolasie bestaan. Om te verseker dat die stelselsgeaardheid van 'n komplekse boerdery effektief verreken word behoort navorsing erkenning te gee die interafhanklikheid van die dimensies van 'n boerdery. Ekspert groepbesprekings is 'n navorsingsmetode wat eerstens geskik is om kennis sinvol byeen te bring en tweedens om kreatiwiteit by deelnemers te stimuleer deur die blootstelling aan nuwe perspektiewe van kundiges van ander spesialiteitsvelde. Ter ondersteuning van die ekspert groepbesprekings is simulasiemodelle in die vorm van multi-periode geheelboerderybegrotings ontwikkel. Die tipe modellering ondersteun die akkurate simulasie van boerderye terwyl die gebruikersvriendelikheid en aanpasbaarheid daarvan die tipiese interverwantskappe van 'n boerdery akkuraat weergee en die impak van aanpassings aan die parameters van die boerdery model vinnig kan meet. Voorstelle deur die deelnemende eksperts kan dus vinnig aangebring word en die finansiële implikasie is dadelik beskikbaar. Deelnemers aan die ekspertgroepbesprekings het velde verteenwoordig soos agronomie, grondkunde, entomologie, die landbou chemiese bedryf, landbou meganisasie, plantpatologie, voorligtingsbeamptes van plaaslike agribesighede, plaaslike produsente en landbou-ekonome. Die dinamika van die groepbesprekings word ondersteun deur elke deelnemer se spesifieke sterkpunte en perspektief. Vir elke homogene produksiegebied in die Wes-Kaap is 'n aparte begrotingsmodel van 'n tipiese plaas vir daardie area ontwikkel. Hierdie modelle het gedien as die basis van die groepbesprekings. Die modelle meet die winsgewendheid van boerderye oor die langtermyn deur middel van die IOK (interne opbrengskoers op kapitaal investering) en die bekostigbaarheid in terme van verwagte kontantvloei. Binne die Swartland is die Koeberg/Wellington, Middel Swartland en Rooi Karoo as homogeen geïdentifiseer en vir die Suid-Kaap die areas van die Goue Rûens, die Middel Rûens en die Heidelberg Vlakte. 'n Tipiese plaas model is ook vir die Wesselsbron area ontwikkel om te vergelyk met die Wes-Kaap areas se modelle. Vir elke area is die verwagte impak van klimaatveranderings, fluktuerende produk- en insetpryse en die moontlike impak van 'n biobrandstofbedryf geëvalueer in terme van die verwagte impak op winsgewendheid. Verskeie area spesifieke strategieë is geïdentifiseer wat moontlik die winsgewendheid van graanproduksie kan bevorder. Die meeste strategieë fokus op die optimalisering van masjineriegebruik en die uitbreiding of intensifisering van die veevertakkings. Die herhaalde suksesvolle gebruik van die modelle ter ondersteuning van die ekspertgroepe in al die gekose studie areas illustreer die waarde daarvan vir die identifisering en evaluering van planne om die winsgewendheid van kleingraanproduksie te verhoog.

Thesis (PhD(Agric))--Stellenbosch University, 2012. / ENGLISH ABSTRACT: The energy paradigm shift from fossil fuels to renewable energy sources is driven, among others, by a growing sustainability awareness, necessitating more sophisticated measurements in terms of a wider range of criteria. Technical efficiency, financial profitability, environmental friendliness and social acceptance are some of the factors determining the sustainability of renewable energy systems. The resulting complexity and conflicting decision criteria, however, constitute major barriers to processing the information and decision-making based on the information. Seeking to implement local bioenergy systems, policymakers of the Cape Winelands District Municipality (CWDM), South Africa, are confronted with such a problem. Following a case study approach, this study illustrates how life-cycle assessment (LCA), multi-period budgeting (MPB) and geographic information systems (GIS) can aid the decision-making process by providing financial-economic, socio-economic and environmental friendliness performance data in a structured and transparent manner, allowing for a comparison of the magnitude of each considered criterion along the life-cycle. However, as the environmental impacts cannot readily be expressed in monetary terms on a cardinal scale, these considerations are given less attention or are omitted completely in a market economy. By measuring the various considerations on an ordinal scale and by attaching weights to them using the multi-criteria decision analysis (MCDA) approach, this study, illustrates how to internalise externalities as typical market failures, aiding policymakers of the CWDM to choose the most sustainable bioenergy system. Following the LCA approach, 37 lignocellulosic bioenergy systems, encompassing different combinations of type of harvesting and primary transport, type of pretreatment (comminution, drying, and fast pyrolysis) and location thereof (roadside or landing of the central conversion plant), type of secondary transport from the roadside to the central conversion plant, and type of biomass upgrading and conversion into electricity, were assessed against five financial-economic viability criteria, three socio-economic potential criteria and five environmental impact criteria. The quantitative performance data were then, as part of the MCDA process, translated into a standardised ‘common language’ of relative performance. An expert group attached weights to the considered criteria using the analytical hierarchy process (AHP). The ‘financial-economic viability’ main criterion received a weight of almost 60%, ‘socio-economic potential’, nearly 25% and ‘lowest environmental impact’, the remainder of around 16%. Taking the prerequisite of financial-economic viability into consideration, the preferred option across all areas of the CWDM (despite various levels of productivity) comprises a feller-buncher for harvesting, a forwarder for primary transportation, mobile comminution at the roadside, secondary transport in truck-container-trailer combinations and an integrated gasification system for the conversion into electricity. / AFRIKAANSE OPSOMMING: Die energie paradigma verandering van fossielbrandstowwe na hernubare energiebronne word gedryf deur ‘n groeiende klem op volhoubaarheid, wat ook meer gesofistikeerde meting in terme van ‘n wyer verskeidenheid maatstawwe vereis. Tegniese doeltreffendheid, finansiële winsgewendheid, omgewingsvriendelikheid en sosiale aanvaarbaarheid is sommige van die faktore wat die volhoubaarheid van hernubare energie stelsels bepaal. Die verskeidenheid oorwegings bring egter kompleksiteit en konflik mee by die verwerking van inligting en die besluitneming wat daarop berus. Beleidmakers van die Kaapse Wynland Distriksmunisipaliteit wat ten doel het om plaaslik bio-energie stelsels te implementeer, word met hierdie probleem gekonfronteer. Hierdie ondersoek illustreer aan die hand van ‘n gevallestudie benadering hoe lewensiklus analise, multiperiode begroting en geografiese inligtingstelsels besluitneming kan ondersteun deur die voorsiening van finansieel-ekonomiese, sosio-ekonomiese (indiensneming) en omgewingsvriendelikheid prestasie data op ‘n gestruktureerde en deursigtige wyse. Dit maak die vergelyking van die waardes van al die kriteria by elke fase van die lewensiklus moontlik. Aangesien die omgewingseffekte nie geredelik in monetêre terme op ‘n kardinale skaal gemeet kan word nie, kry hulle binne die markekonomie minder aandag of word selfs buite rekening gelaat. Deur hierdie verskeidenheid kriteria op ‘n ordinale skaal te meet en gewigte met behulp van multikriteria besluitneming aan hulle toe te ken, toon hierdie ondersoek hoe om eksternaliteite as tipiese markmislukkings te internaliseer om beleidmakers van die Kaapse Wynland Distriksmunisipaliteit in staat te stel om die mees volhoubare bio-energie stelsel te kies. Met behulp van lewensiklus analise is 37 lignosellulose bio-energie stelsels geïdentifiseer as verskillende kombinasies van oes van die bome, primêre vervoer van houtstompe, vooraf verwerking (verspaandering, droging, vinnige pirolise), die ligging van hierdie aktiwiteite (langs ‘n plantasie of by ‘n sentrale omsettingsaanleg), tipe sekondêre vervoer van houtspaanders vanaf die plantasie na die sentrale omsettingsaanleg en tipe biomassa opgradering en omsetting van die houtspaanders na elektrisiteit. Die verskillende stelsels is gemeet aan die hand van vyf finansieel-ekonomiese kriteria, drie indiensneming potensiaal kriteria en vyf omgewingsimpak kriteria. Die kwantitatiewe metings is deur middel van multikriteria besluitneming omgeskakel na ’n gestandaardiseerde “gemeenskaplike taal” van relatiewe prestasie. Lede van ‘n ekspertgroep het gewigte is aan die onderskeie kriteria met behulp van die analitiese hierargie proses toegeken. Aan die finansieel-ekonomiese lewensvatbaarheid hoof kriterium is ‘n gewig van by die 60% toegeken, aan die indiensnemingspotensiaal bykans 25% en aan omgewingsvriendelikheid sowat 16%. Die voorkeur kombinasie vir al die areas van die Kaapse Wynland Distriksmunisipaliteit sluit in ‘n saag-bondelaar vir die oesproses, ‘n plantasie-vragmotor vir primêre vervoer, mobiele verspaandering langs die plantasie, ‘n vragmotor-skeepshouer-treiler kombinasies vir die sekondêre vervoer van houtspaanders en ‘n geïntegreerde vergassingstelsel vir die omsetting van houtspaanders na elektrisiteit.

This study attempts to identify factors responsible for determining differences in the productivity of cattle managed by communal and private livestock farmers in the southern region of Botswana during 1999/2000. It is hypothesised that herd productivity and investment in southern Botswana are higher on private ranches than on open access communal grazing land. This study is important because livestock, especially cattle, contribute significantly to the livelihood of farmers in Botswana. Cattle are a major source of meat, milk and draught power, and provide a store of wealth that protects against inflation and which can easily be converted into cash. Cattle production is also an important source of employment in the rural economy of Botswana. Furthermore, the export of beef is a major source of foreign exchange earnings, and cattle account for 80 percent of agriculture's contribution to Botswana's gross domestic product. A stratified random sample survey of communal and private livestock farmers was conducted in the southern region of Botswana from August 1999 to May 2000 with the assistance of four enumerators. The sample survey data were used to compute descriptive statistics and to estimate the parameters of a block recursive regression model. The model postulated relationships between agricultural credit, investment in fixed improvement, investment in operating inputs and herd productivity. Some of the equations are estimated with Ordinary Least Squares (OLS) and some with Two-Stage Least Squares (2SLS) to account for likely correlation between endogenous explanatory variables and the error term. Descriptive statistics show that levels of investment and herd productivity are higher on private farms than on open-access communal grazing. Private farmers are also better educated, more liquid, and have larger herd sizes, but do not differ from their communal counterparts in terms of age, gender, race or household size. The regression results show that (a) respondents with secure tenure and larger herds use more agricultural credit than those who rely on open access communal grazing land to raise cattle; (b) secure land tenure, higher levels of liquidity and use of long-term credit promote investment in fixed improvements to land; (c) liquidity from short-term credit and wage remittances supports expenditure on operating inputs; and (d) herd productivity increases with greater investment in fixed improvement and operating inputs. Herd productivity is therefore positively (but indirectly) influenced by secure land tenure. It can therefore be inferred that government should (a) uphold private property rights to land where they already exists; (b) privatise open access grazing to individual owner operators where this is politically, socially, and economically feasible; and (c) where privatisation to individuals is not feasible, government should encourage users to convert the grazing into common property by subsidising the costs of defining user groups and the boundaries of their resources, and enforcing rules limiting individual use of common property. This first-step in a gradual shift towards more secure tenure should be followed by the conversion of user groups to non-user groups organized along the lines of investor-owned firms where members exchange use rights for benefit and voting rights in a joint venture managed by an expert. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2006.

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.

Non-timber forest products (NTFPs) constitute an important source of livelihood for most poor rural households and communities in Zimbabwe. NTFPs also serve as a vital livelihood safety net in times of hardship. An important feature of this dependence is that almost all NTFPs are deemed to have ‘public good’ characteristics, with no exclusive property rights. Consequently, extraction is often intense and exhaustive because of lack of alternative income sources, unreliable productivity and weak enforcement of institutional arrangements governing NTFPs use. In recent years, with HIV/AIDS rampant in Zimbabwe, there are indications of a rapid increase in the extraction of NTFPs, mostly from common property resources. Appropriate natural resources policies need to be based on comprehensive research, yet to date scant attention has been paid to understanding the role of NTFPs in mitigating the predicaments of HIV/AIDS-affected households in Zimbabwe. The main objective of this study was to determine the types of and need for natural resource management interventions to help ensure the sustainability of local responses to HIV/AIDS. The research focused on five communities of Sengwe Communal in the Chiredzi district, Zimbabwe. Multistage cluster sampling was used to select ten villages and households for the survey. Two villages from each community, representing the most and the least affected by epidemic were selected for each community using stratified random sampling. A cluster analysis was used to improve understanding of the challenges of rural livelihoods and how households diversify their livelihood strategies to cope with the various constraints. Five dominant groups based on their livelihood diversification patterns were identified : (1) smallholders/unskilled workers; (2) subsistence smallholder/non-timber forestry products harvesters; (3) crop production and non-timber forestry products extraction integrators; (4) commercial smallholders with regular off-farm employment; and (5) specialised commercial livestock producers. Multinomial logit model results showed that the level of education of the household head, the value of physical assets, cattle numbers and income, remittances, NTFPs income and economic shocks were the main determinants of these livelihood choices. Empirical evidence also revealed that households that were statistically significantly affected by HIV/AIDS economic shocks practised ‘distress-push’ diversification by extracting NTFPs. These results suggest that policy makers need to advise rural households on how to improve their risk management capacities and move from geographically untargeted investments in livelihood assets to a more integrated approach adapted to the asset base of individual households. Using panel data from 200 households in 2008 and 2009, regression models revealed that NTFPs extraction is an important ex-post coping mechanism for many HIV/AIDS-afflicted households. The results also revealed that the main determinants of livelihood strategy choices were differences in asset endowment, especially education, land and livestock and the impact of the shock. Asset constraints compelled diversification into lower-return activities such as NTFPs extraction. Findings from a comparative analysis of HIV/AIDS-afflicted and non-afflicted households showed that HIV/AIDS-afflicted households were relatively young, with relatively few physical and livestock assets. A fixed-effect Tobit model indicated a positive significant relationship between HIV staging and quantity of NTFPs extracted. The relatively young, poorly educated households with low household coping capacity in terms of livestock value relied more on the natural insurance of forests in buffering HIV/AIDS economic shocks. These results have important policy implications for development planners, conservationists and non-governmental organisations working in the region. There is a need for programmes that reduce pressure on forest resources, and improved access to education and health care, thus helping the poor to cope with the HIV/AIDS economic crisis. This study also examined the extent to which forest degradation is driven by existing common property management regimes, resource and user characteristics, ecological knowledge and marketing structure. A Principal Component Analysis indicated that the existence of agreed-upon rules governing usage (including costs of usage), enforcement of these rules, sanctions for rule violations that are proportional to the severity of rule violation, social homogeneity, and strong beliefs in ancestral spirits were the most important attributes determining effectiveness of local institutions in the management of Common Pool Resources (CPRs). Empirical results from an ordinary least regression analysis showed that resource scarcity, market integration index, and infrastructural development lead to greater forest resource degradation, while livestock income, high ecological knowledge, older households, and effective local institutional management of the commons reduce forest resource degradation. The results suggest that there is a need for adaptive local management systems that enhance ecological knowledge of users and regulates market structure to favour long-term livelihood securities of these forest-fringe communities. / Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2010.

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.

Community-based forest management (CBFM) offers a better strategy for controlling forest resource degradation while at the same time benefiting local communities. With few exceptions, CBFM had been largely neglected in South Africa in the past. Lately, community forestry has, however, gained impetus through changes in the programs of the Department of Water and Forestry. Despite such efforts, a preliminary survey in some districts of KwaZulu-Natal showed that only a small proportion of households were participating in CBFM. The reason behind the lack of household participation could be that the objectives of most CBFM programs were not in line with the values rural communities attach to forest resources. Some authors have recommended that understanding the values households attach to forest resources is crucial for framing strategies on implementing CBFM. This study, therefore, investigates the values households in KwaSobabili, New Reserve B and Gudwini rural communities of KwaZulu-Natal, in aggregate, attach to forest resources and the factors influencing households to participate in CBFM. The social choice approach was used to measure the values households attach to forest resources. Hundred and fifty-one (151) household heads were asked to give scores of relative importance to 21 forest products and services on a 5-point Likert scale. Principal Component Analysis was used to generate composite indices or factors representing the values households attach to forest products and services. Ordinary Least Squares regression was then employed to determine the factors influencing such valuation of forests. The Multinomial Logit model was used to estimate the determinants of household position/status on participation in CBFM. The results showed that households in the three communities, on aggregate, overwhelmingly attach anthropocentric values to forest products and services. This was interpreted to be due to the high levels of household poverty that is rampant among many rural households of South Africa. However, in addition to the anthropocentric values, rural households also attach cultural/moral/spiritual and non-use/option values to forests. No differences existed across the three communities in terms of the anthropocentric and cultural values households attach to forest. However, households in Gudwini (who were managing a natural forest) significantly attached more non-use/option values to forest. This was attributed to the fact that households in this community believed that the natural forests were their heritage and were obliged to pass them to their future generations. It was also found that the anthropocentric and cultural/moral/spiritual values households attach to forest resources influence the decision to participate in CBFM programs. Other socio-economic factors (especially those that influence household‟s dependency on forests and the opportunity cost of their time in managing those forests) such as gender of household head, household size, levels of household income, total amount of social grants, perception of forest degradation, access to electricity, and distance to the forests have also been found to influence the household‟s decision to participate in CBFM. The study recommended that, since poorer societies have more materialistic orientation towards forests, CBFM programs should target poverty alleviation/income generation as the central theme to enhance participation in CBFM. Moreover, local people who depend more on forests and those with a lower opportunity cost of their time in managing forests could be targeted to ensure sustainable CBFM programs. / Thesis (M.Sc.Agric)-University of KwaZulu-Natal, Pietermaritzburg, 2012.

Rwanda, in its transition phase since 1994, has had the support of major international development organizations, including the World Bank, the International Monetary Fund (IMF), the United Nations Development Program, the US Agency for International Development (USAID), and other development organizations. The aim of this support is to promote Rwandan agriculture in which 45 percent of the Rwandan GDP and 90 percent of employment share originate. The possible role that farmers can play in this process through their small-scale farmers' associations is well recognized by the Ministry of Agriculture in Rwanda. Farmers in Gikongoro province, the study area, are constrained by many factors, such as soil infertility, small land areas, and lack of access to modern inputs (e.g., seed, fertilizer and lime) and agricultural credit. In addition, land degradation in the form of soil erosion, soil acidity, and nutrient depletion undermines soil productivity leading to poor crop yields, and keeps farmers dependent on potential support from government and non-governmental projects. Between 2000 and 2004, farmers in Gikongoro province received support from the Development Activity Program (DAP) under the umbrella of World Vision International, Rwanda. The DAP supports farmers mainly in land terracing for soil erosion control, and supported farmers also receive modern inputs (fertilizer, seed and lime), storage facilities, and training. This study analyzes the impact of agricultural assistance afforded by the DAP and socioeconomic characteristics of households on agricultural production in Gikongoro province. Data for this study were collected from July to August 2004 using a stratified multistage sample of 204 household heads who are members of 24 farmers' associations of which 10 are supported by the DAP in the three districts; Mudasomwa, Kivu, and Nyamagabe. The study compares DAP supported and unsupported farmers in terms of differences in household incomes and crop yields. Descriptive statistics indicate that DAP supported farmers have significantly higher yields, household income, and better access to modern inputs and terraced land than unsupported farmers. These results seem to indicate that DAP support has had a significant impact on agricultural production and household incomes in Gikongoro province. However, these results are based only on a univariate analysis. The relationship between socioeconomic characteristics and household potato production in Gikongoro province was also analyzed to identify other factors that affect food production. A recursive system of linear and log-linear equations was estimated to analyze the effects of DAP, cultivated potato area, liquidity, gender of the household head (producer), years of schooling, family size, and age of the producer on farmers' productivity as measured by potato yields. Investment in operating inputs (fertilizer, seed, and lime) was used as a determinant of potato yields. Results indicate that cultivated potato area, liquidity, family size, and age (greater experience and lower transaction costs) of the household head significantly increase the use of operating inputs, which in turn has a significant positive impact on potato yield. The study suggests that DAP may need to be more selective in supporting farmers, focusing more on the farm size, education and family size profile of association members when deciding where to channel support. The study also recommends more research into the efficiency of land rental and credit markets to better understand land and liquidity constraints to improved household production in Gikongoro province. A networking model for supporting farmers' associations is proposed, in which a joint role for the Rwandan government, academic and research institutions, NGOs, and the private sector is expected to lead to sustainable agricultural development in Gikongoro province, Rwanda. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.

The South African (SA) sugar industry supports approximately 50,940 small and large scale producers who collectively produce 22 million tons of sugarcane seasonally, on average. SA farmers face many challenges that lead to an uncertain decision making environment. Despite a general consensus among agricultural economists that risk constitutes a prevalent feature of the production and marketing environment, various authors have recently stated that risk-related research has failed to provide a convincing argument that risk matters in farmers' decisions. The various shortcomings of previous research have been identified and recommendations for the future proposed. Recommendations include that the focus of future risk research should be on holistic risk management. This study firstly identified the perceived importance of 14 separate sources of risk for a sample of 76 large-scale commercial sugarcane farmers in KwaZulu-Natal. Once a sufficient understanding of the risk perceptions of respondents had been attained, their use of 12 risk-related management strategies was determined. Principal components analysis (PCA) was used to investigate how individual management instruments are grouped together by respondents into choice brackets in order to make use of complementary and substitution effects. The study then proposed and demonstrated a technique that may be used in future research to isolate the effects of risk on individual risk-related management responses by modelling the management strategies contained within individual choice brackets with two-stage least squares regression analysis (2SLS). The most important risk sources were found to be the threats posed by land reform, minimum wage legislation and the variability of the sugar price, in that order. PCA identified seven risk dimensions, collectively explaining 78% of the variance in all 14 risk sources considered. These dimensions were: the "Crop Gross Income Index", "Macroeconomic and Political Index", "Legislation Index", "Labour and Inputs Index", "Human Capital and Credit Access Index", "Management Index" and the "Water Rights Index". Respondents were also asked questions regarding risk-related management strategies, including diversification of on-farm enterprises, investments and management time. PCA identified six management response brackets, collectively explaining 77% of the variance in the 12 responses considered. These response indexes were: the "Mechanisation and Management Bracket", "Enterprise and Time Diversification Bracket", "Insurance and Credit Reserve Bracket", "Geographic and Investment Diversification Bracket", "Land Trade Bracket" and the "Labour Bracket". Lastly, the study proposed a methodology for investigating the role of individuals' risk preferences in decision making. The recommended technique involves the simultaneous modelling of the major risk-related management strategies within each management response bracket, using 2SLS. A measure of risk preference was included in the 2SLS analysis to establish the influence of risk on decision making. By applying this methodology to the data obtained in this study, respondents were shown to be taking advantage of various complementary and substitution effects that exist between management responses. This was evident from the PCA and confirmed for the first previously identified management response bracket using 2SLS regression analysis. Risk attitude was shown to be a significant determinant of management decisions regarding the extent to which back-up management is kept in reserve. Important policy recommendations stemming from this study include that government review restrictive labour legislation and decrease the uncertainty surrounding new land redistribution legislation. Farmers need to make better use of available information by considering the effects of any single management decision on separate decisions, enabling them to take further advantage of substitution and complementary effects that may exist between management strategies previously considered in separate decision brackets. The fact that mechanisation and labour use occur in separate risk-related management response brackets in this study is an example of one such substitution effect that farmers do not seem to be utilising in terms of their management decision making. Future research using time series data is important in order to identify how risk perceptions and management portfolios change over time. Also, further research using the methodology proposed in this study may prove to be a useful means of more adequately addressing the question "Does risk matter in farmers' decisions?" / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.

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.