Imperfect information on aspects of biodiversity conservation will constrain the extent to which tourists’ preferences for biodiversity conservation are revealed in game reserve (GR) tariffs, reducing the incentive for tourism businesses to invest in biodiversity conservation. Accreditation is an institutional approach to addressing the issue of imperfect information on biodiversity conservation. In this study, Choice Experiments (CE) and the Contingent Valuation Method (CVM) are used to estimate tourist’s willingness-to-pay (WTP) to visit biodiversity conservation accredited terrestrial nature-based tourism (NBT) destinations in selected areas of South Africa (SA). A survey of 97 domestic tourists and 96 foreign tourists was conducted at 16 private and public GR camps in north-eastern KwaZulu-Natal (NEKZN) and Mpumalanga/Limpopo Provinces (MP/LP) during October and November 2004. The survey captured socio-economic data to be used in discriminating between market segments, eighteen hypothetical CE questions and a CVM question. Analyses comparing the preferences of domestic tourists from foreign tourists, tourists visiting NEKZN from tourists visiting MP/LP and tourists visiting private GRs from tourists visiting public GRs were performed. In addition, Hierarchical Cluster Analysis (HCA) was used to identify groups of tourists with similar preferences. Respondents are grouped into three market segments according to their revealed preferences using HCA. Linear Discriminant Analysis (LDA) was used to discriminate the three groups based on socio-economic characteristics. These groups were named “Conservation Vacationers”, “Incidental Sightseers” and “Big 5 Brigade” based on socioeconomic characteristics unique to each group. The region (NEKZN or MP/LP), level of education and itinerary (independent travellers or part of tour group) were the most powerful in discriminating “Big 5 Brigade” from the other two groups in the first function. The second function primarily discriminates Conservation Vacationers from Incidental Sightseers based on membership to a wildlife society, gender and education. Results of the CE and CVM studies respectively, indicate that, overall, respondents were willing to pay premiums of R114.41 and R87.67 per person per night (all premiums are presented as per person per night, unless otherwise stated) to stay at a GR accredited with having a high standard of biodiversity conservation. Foreign tourists were, on average, willing to pay the highest premium of R136.35 for biodiversity conservation accreditation, while tourists visiting private GRs were, on average, willing to pay the lowest premium of R 96.42. A further three market segments were identified using HCA. The average WTP estimates for biodiversity conservation accreditation for Groups 1(Conservation Vacationer), 2(Incidental Sightseer) and 3(Big 5 Brigade), identified by HCA were R171.41, R66.15 and R14.94, respectively. On average, respondents in all groups, game-viewing quality was most highly valued, followed by the level of congestion. Results of this study may be useful to NBT operators and managers in developing marketing strategies targeting specific market segments. Analysis of the results by market segments indicates that CE may be a more reliable technique than CVM. Further research on the costs and benefits of biodiversity conservation accreditation is necessary to predict the extent to which NBT businesses are likely to adopt biodiversity conservation accreditation. / Thesis (M.Agric.Man.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.

The main objective of this study was to analyse South African (SA) citrus farmers’ perceptions of the benefits and costs of complying with quality assurance (QA) certification schemes for citrus exports to the European Union (EU). The study used an e-mail and postal survey questionnaire mailed to a stratified random sample of 260 SA commercial citrus growers during July 2007. The survey yielded 108 usable responses - a response rate of 10.8% from the target population of 1001 commercial SA citrus growers. The main factors motivating respondents to adopt QA certification were to keep and maintain access to existing markets; to improve customer confidence in their products; to access new markets; and to meet food safety and retailer requirements. Principal Component Analysis (PCA) identified six underlying dimensions of motivators, which suggest a drive by sampled respondents to gain certification to meet market requirements, achieve intra-farm benefits such as cost-reduction, and to remain competitive in existing and new foreign markets. The sampled respondents identified the main internal benefits from QA certification as the ability to retain existing markets; improved worker health and safety; better access to foreign markets; better farm organisation; and improved fruit safety and orchard management. The PCA identified six broad dimensions of these internal benefits. Comparing the motivator and perceived benefit dimensions, most of the motivators seem to have been in part realised by the respondents. Respondents rated shared goals and values about the product; more joint decision making on fruit safety; more working together on quality assurance; a better business working relationship; improved coordination; and improved trust as the six major supply chain benefits from QA certification. The two dimensions identified from these external benefits by PCA were: (1) Improved working relationship and product quality benefits, and (2) Improved cooperation and contractual benefits. The major costs of implementing EUREPGAP certification related to initial investment costs and the recurrent annual costs of compliance. The respondents, on average, spent an estimated R70655 on initial compliance costs, mainly for infrastructure, additional buildings and employees training. Some 60% of respondents spent less than 1% of annual farm turnover on initial compliance costs, while most of the respondents (84%) spent less than 1% of annual farm turnover on recurrent costs of compliance. Growers that owned a pack-house had statistically significantly higher initial and annual costs of compliance. Most (63%) of the respondents had a relatively high level of overall satisfaction with QA certification. The second objective of this study was to analyse the determinants of SA citrus farmers’ overall level of satisfaction with QA certification. Ordinary Least Squares (OLS) regression estimated that perceived dimensions of internal benefits, namely (1) Foreign market access benefits; (2) Intra-farm benefits; (3) Improved fruit safety and orchard management; (4) Quality and worker welfare benefits; and (5) Ability to retain existing markets, all had a statistically significant positive influence on the sampled growers’ overall level of satisfaction with QA certification. Supply chain benefits also had a positive effect on overall level of satisfaction, although the effects were not statistically significant. Similarly, no statistically significant relationship could be established between farm size or the respondents’ level of satisfaction with their certifying agents and their overall level of satisfaction with QA certification. Record keeping is required by nearly all EUREPGAP control chapters and for farm audits. Crop protection is also perceived as a complex requirement of the EUREPGAP protocol. Policymakers thus need to be aware of the extra costs that protocols create for management. The Citrus Growers’ Association of Southern Africa (CGA) could consider providing more extension advice to farmers on the technical requirements of certification (particularly best practices for implementing the control chapters). Comparing the motivator and perceived benefit dimensions, most of the motivators for QA certification seem to have been in part realised by the respondents. For instance, the drivers to improve business image/market competitiveness/market access requirements/farm profitability were realised via perceived reputation/input cost savings/foreign market and profit improvement benefits. The study results, therefore, provide some evidence that QA certification is a necessary strategy for maintaining competitiveness in EU citrus markets. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2010.

This study investigates the potential economic impact of a land tax implemented in terms of the Local Government Municipal Property Rates Act No. 6 of 2004 (“the LGMPRA”) on selected commercial farms in KwaZulu-Natal (KZN) using individual farm data for the period 2001-2006. The study first presents a brief history of land taxes around the world, describing the origins, prevalence and rates of land tax in the United States of America (USA), Australia, Britain and some Nordic countries. This sets the background for a brief history of land taxation in South Africa up to the implementation of the LGMPRA. The study then identifies the economic effects of a land tax, highlighting issues such as the capitalization of a land tax, relevant views of this tax, valuation methodologies, the advantages and disadvantages of a land tax, and the effects of a land tax on future capital investment on farms. Thirdly, the study presents key provisions in the LGMPRA pertaining to farmers with regard to land tax rebates, reductions and exemptions, farmland valuations and the determination of a land tax rate. The effect and applicability of these rebates, reductions and exemptions on the effective land tax rate are also discussed. Fourthly, the study uses a Residual Income Methodology (RIM) framework to estimate the annual economic profit (return to risk and land excluding capital gains) for five different case study farms in the Mtonjaneni and Umgeni municipal districts of KZN. This RIM framework makes allowance for the opportunity cost of management in estimating annual economic profit. These case studies are typical of the main farming enterprises in KZN such as sugarcane, timber, intensive poultry, intensive dairy, cattle, maize and potatoes. Sensitivity analysis is then applied to assess the effect of land tax rates ranging from 0.5% to 5% of the market value of land and fixed improvements on the five farms’ ability to pay a land tax after accounting for rebates proposed by the Department: Provincial and Local Government (DPLG). The estimated mean annual rate of return to risk and land (excluding capital gains) prior to the land tax for the five case study farms during 2001-2006 ranged from -8.50% to 2.94%, with an average of -1.74%. The case farms’ ability to pay a land tax rate of 1% on the value of improved land with and without proposed DPLG rebates from annual current operating returns ranged from zero to five out of five years, with an average of two out of five years. A 2% land tax rate with such rebates could be financed using annual current operating returns also only in two out of five years on average. These results suggest that land taxes at the proposed rates of 1.5% (Mtonjaneni) or 1% (Umgeni) on these specific farms would markedly reduce the incentive to invest in farm improvements These results also indicate that further research in KZN and other provinces in South Africa needs to be conducted to help ascertain the effects of the implementation of the LGMPRA in other municipalities. / Thesis (M.Agric.Man.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.

Labour legislation was introduced into agriculture in the early 1990s with the Basic Conditions of Employment Act (BCEA) being gazetted in 1992. Since the mid-1990s "new" labour legislation pertaining to agriculture has been implemented in South Africa, and includes the Basic Conditions of Employment Act 75 of 1997 (amended), the Unemployment Insurance Act 63 of 2001 (amended), the Labour Relations Act (LRA) 66 of 1995, the Land Reform (Labour Tenants) Act 3 of 1996, the Extension of Security of Tenure Act 62 of 1997, the Employment Equity Act 55 of 1998, the Skills Development Levies Act 9 of 1999, and the Sectoral Determination (an amendment of the BCEA 75 of 1997) which includes the imposition of minimum wages. This study examines the legislation in detail as well as the implications of this legislation for agricultural labour employment in South Africa. A relative increase in the cost (transaction and wage) and risk associated with labour motivates farmers to replace labour with machinery, machinery contractors, labour contractors or new technologies that are labour-saving. This results in a decrease in the demand for unskilled workers and higher levels of poverty and unemployment in South Africa. This study estimates long-run price elasticities of demand for regular labour in South African (SA) agriculture using both Ordinary Least Squares (OLS) regression and a Two-stage Least Squares (2SLS) simultaneous equations model. The 2SLS model includes a labour supply equation. Secondary data obtained over a 43 year period (1960-2002) from Statistics South Africa and the Abstract of Agricultural Statistics were used in this study. Both models were estimated for the period 1960-2002, and included a piecewise slope dummy variable for wages with the threshold year taken as 1991 to reflect expected changes in farm labour legislation. Study results show that the estimated long-run price elasticity of demand for labour for the pre-1991 (i.e., 1960-1990) period was -0,25 for the OLS model and -0,23 for the 2SLS model suggesting that the demand for regular labour was jnelastic during this period. For the post-1991 period (1991-2002), the long-run elasticity was estimated as -1,32 for the OLS model and -1,34 for the 2SLS model. This shows a structural change in demand that questions the appropriateness of minimum wage and other labour legislation that has raised the cost of regular farm labour in South Africa. Labour legislation introduced in the early 1990s encouraged farmers to substitute casual workers for regular workers. However, the inclusion of all casual workers in minimum wage legislation from 2006 is expected to slow the casualisation of agricultural labour as farmers turn to labour contractors, chemicals and machinery as the next best substitutes. The study found that an increase (decrease) in the price of chemicals (pesticides and herbicides for crops, and labour saving dips and sprays for animals) result in an increase (decrease) in the demand for regular labour. The demand for labour is also sensitive to changes in real interest rates (used as a proxy for machinery costs). The cost of capital would decrease (increase) as interest rates fall (rise), resulting in farmers adopting more (less) machinery and equipment, causing a decrease (increase) in the demand for regular labour, ceteris paribus. In order to reverse the regular labour unemployment trend in SA agriculture, government could choose to adopt more flexible labour market regulations (i.e., legislation regarding the hiring and dismissing of farm workers, and increases in wages and benefits for the farm worker could be based on the individual performance of each worker as opposed to increasing the wages of the entire workforce through minimum wages) which would reduce labour costs and encourage farmers to employ more labour. / Thesis (M.Agric.Man.)-University of KwaZulu-Natal, Pietermaritzburg, 2006.

A survey of 186 commercial farmers from three Zobas (provinces) of Eritrea was conducted between November 2002 and February 2003 to examine farmers' perceptions of risk, to determine the most important sources of risk affecting farmers' decisions, to identify managerial responses to risks and to identify information use. As part of the main survey, 74 randomly selected commercial dairy farmers were also interviewed to identify factors that affect the purchase of livestock insurance. Findings show that whilst some risks are of concern to most farmers, others are more enterprise or region specific. In general, changes in weather, changes in the labour force, and diseases, pests and weeds were identified as being important sources of risk for most farmers. Factor analysis was used to analyse heterogeneity amongst farmers' perceptions of various risks. Results indicate that programmes designed to assist farmers in Eritrea to manage production and price risks should vary between enterprises and between regions. Policy implications of this research include that the government of Eritrea should disseminate information to clarify agricultural tax and land policies, and its demobilization and rehabilitation programmes. Relaxing foreign exchange rate controls may reduce price risks in agricultural input markets. Increased use of information sources, choice of production system, keeping production records, and diversification of farm enterprises were found to be the main production responses to risk. Important marketing responses included indirect selling (e.g. to the grain board or wholesalers) and use of marketing information, while important financial responses were keeping financial records and investing off-farm. Factor analysis was used to analyse heterogeneity amongst farmers' managerial responses to risk. Results indicate that farmers respond differently to different types of risk attributed to enterprise type. Policy implications of this research include that the government of Eritrea should create a more conducive environment for business, train farmers with appropriate record keeping skills and improve road and communication infrastructure. Results also show that farmers' sources of information vary according to farm type. While poultry and dairy farmers depend largely on information provided by the government, horticulture and crop farmers rely mostly on their own sources of information or non-governmental sources. Policy recommendations include additional and appropriate record-keeping training for farmers, improving the road and communication infrastructure, promoting commercial information providers, and periodically publishing an agricultural magazine by the Ministry of Agriculture in a way that farmers can understand the information. The results of a logit model of the adoption of livestock insurance indicate that formal education of the farmer and the farmer's awareness of livestock insurance increase the probability of insurance adoption, whereas farming experience, poor location and use of alternative risk management strategies, such as off-farm investments and farm enterprise diversification, reduce the probability of livestock insurance adoption. Further insight into the socioeconomic factors influencing farmers' adoption of livestock insurance may assist policy makers and the National Insurance Corporation of Eritrea in their future plans. Results of this study have some policy implications, such as the need for a variable rather than fixed insurance premium, improving the know-how of farmers concerning risk assessment, improving Zobas' infrastructure and a need for a thorough study to be conducted on the demand for agricultural insurance in Eritrea. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

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.

This dissertation investigates the impact of institutional and governance factors on the performance of 10 selected smallholder agricultural cooperatives (case studies) in KwaZulu- Natal (KZN). All the selected cooperatives were traditionally structured (e.g., one-member, one-vote system). Due to logistical and administrative constraints, the selected smallholder cooperatives were drawn from the EThekwini and UMgungundlovu Districts (the latter comprising of two sub-districts, namely Camperdown and Msunduzi), which incorporate the major cities of Durban and Pietermaritzburg. Five of the cooperatives grow and market vegetables, three produce and market poultry, one is a beef production cooperative and another operates a bakery. Information from the interviews suggests that members of the selected smallholder cooperatives do not fully understand cooperative principles and have high expectations of potential benefits of being members. Descriptive analysis of the case studies describes total membership of each selected cooperative; average number of management meetings per month; gender and age composition of cooperative members; the characteristics of chairpersons of these cooperatives (e.g., gender, age and education); the initial capital structure of these cooperatives; annual turnover; growth opportunities; and institutional and governance factors influencing the performance of these cooperatives. The results of a cluster analysis suggest that the performance of the selected smallholder cooperatives is influenced by institutional and governance problems. Institutional problems give rise to low levels of equity and debt capital, reliance on government funding, low levels of investment, and subsequent loss of members. Governance problems are strongly linked to the absence of secret ballot, low levels of education, lack of production and management skills training, weak marketing arrangements and consequent low returns to members as patrons or investors. The conclusion is that appropriate institutional arrangements and good governance are important to the performance of enterprises initiated by groups of smallholders. South Africa’s new Cooperatives Act prevents smallholder cooperatives from adopting good institutional arrangements. Alternative ownership structures such as close corporations and private companies offer better institutional arrangements and opportunities for equity-sharing partnerships. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2009.

In South Africa commercial agriculture employs approximately 8.5% of the national workforce. Therefore, information about commercial farmers’ perceptions of and management responses to the HIV/AIDS pandemic are likely to be of interest to policy makers and non-governmental organisations (NGOs) in the health sector, as well as practitioners in rural development and commercial agriculture. HIV/AIDS affects businesses such as commercial farms by decreasing productivity, increasing costs and therefore decreasing overall profitability. Farm business’ responses to the challenges posed by HIV/AIDS may advantage or disadvantage farm workers. For example, farm workers are highly vulnerable to burden-shifting activities (practices which reduce the cost of HIV/AIDS to the employer, such as the outsourcing of low-skilled jobs). However, farm businesses may also play a substantial role (e.g., by providing formal adult education or access to clinics) in addressing the HIV/AIDS epidemic in rural commercial farming areas of KwaZulu-Natal and in South Africa generally. This study presents an analysis of KwaZulu-Natal commercial farmers’ perceptions of and management responses to the HIV/AIDS pandemic. This analysis identifies the farm, business and personal characteristics of the various respondents. It is important to know this information because it assists in understanding why commercial farmers are responding as they are, which will in turn assist in future HIV/AIDS policy planning. The analysis is based on a postal census survey of Kwanalu (KwaZulu-Natal Agricultural Union) commercial farmer members in April and May 2007. Results suggest that, on average, Kwanalu members are highly concerned about the impact of HIV/AIDS on their businesses. A majority of respondents perceived HIV/AIDS to negatively affect the current and future profitability of farming, increase labour absenteeism and staff turnover rates, and reduce labour productivity. An analysis of variance (ANOVA) of the data shows that respondents’ management responses to the HIV/AIDS pandemic varied by farm size and enterprise type, but include paying higher than average wage rates to attract and retain healthy and productive workers, multi-skilling staff to provide back-up skills, and mechanisation to defer costs of HIV/AIDS. Respondents tended to believe that effective HIV/AIDS treatment and prevention programmes require an integrated approach between government, employers and employees. Two response indexes were calculated: (1) ranking by adopters only (only those who use a certain response are included) and (2) ranking by all respondents (a response is not used by a respondent automatically scores zero). The response indexes showed that resource-intensive HIV/AIDS services such as provision of antiretrovirals (ARVs) and nutritional supplements are ranked high by actual adopters, but relatively low overall (as only a small proportion of respondents are adopting these strategies) in the ranking by all respondents. Burden-shifting practices (e.g. mechanisation) are ranked relatively high in both rankings, indicating that respondents rate them as important in managing HIV/AIDS, and that many respondents are utilising them. Relatively inexpensive HIV/AIDS services (e.g. informal communication) are ranked low by actual adopters but high on the overall index as many respondents are using them (but doubt their effectiveness). A linear regression analysis was conducted on principal components from the response indexes to identify characteristics of “high” and “low” responders and of those who utilise burden shifting activities or HIV/AIDS services. The characteristics of “high” responders are that they perceive HIV/AIDS to impact on costs; they employ a high proportion of skilled labour; and they have high turnovers and high debt servicing obligations. Responders who employ large amounts of labour (particularly permanent labour); who perceive HIV/AIDS as the responsibility of the employer; who are older and more experienced; and who have a relatively high debt: asset ratio tend to use HIV/AIDS services to manage the impacts of HIV/AIDS. Many respondents already play an important but inexpensive role in HIV/AIDS prevention and treatment through encouraging voluntary HIV testing and providing staff with information and transport to clinics. Policy makers should take this into consideration when formulating HIV/AIDS policies to combat the pandemic.

Apartheid and colonialism left deep imprints on contemporary South African society. Nowhere are these more compellingly apparent than in the highly skewed distribution of land between whites and blacks. At the beginning of the 1990' s, it was estimated that 12 million black people lived on only 17.1 million hectares of land, whilst 60,000 white commercial farmers occupied 86.2 million hectares. Since democratisation in 1994 various modes of land redistribution have emerged in South Africa to redistribute farmland to previously disadvantaged people. In 1994, an African National Congress (ANC)-led government initiated a land redistribution programme by offering Settlement/Land Acquisition Grants (SLAG) to previously disadvantaged South Africans to purchase formerly white-owned farms on a willing buyer-willing seller basis. The aim of SLAG was to redistribute 30 per cent of the country's commercial farmland to previously disadvantaged South Africans within five years. However, by the end of the first five years less than two per cent of white-owned farmland was transferred to previously disadvantaged South Africans. Government responded by introducing a new grant programme, the Land Redistribution for Agricultural Development (LRAD) programme in August 2001 with a less ambitious objective of transferring 30 per cent of white-owned farmland to previously disadvantaged South Africans over 15 years (i.e. two percent per annum). In addition to the government's land redistribution programme, private and semi-private initiatives have emerged to redistribute farmland to previously disadvantaged people. The BASIS Collaborative Research Support Programme sponsored by the U.S. Agency for International Development (USAID) has monitored government (SLAG) and private farmland transactions in the province of KwaZulu-Natal since 1997. This study builds on these previous analyses of farmland transactions by comparing the performance of LRAD relative to private transactions in transferring farmland to previously disadvantaged South Africans during 2002, and contrasts the results with those from years 1997 to 2001. Results from the study indicate that the launch of LRAD in 2001 had a significant impact on land redistribution in 2002. In KwaZulu-Natal, the rate of land redistribution doubled from 0.5 per cent in 2001 to one percent in 2002. The results also show that LRAD has not only succeeded in drawing private resources into the land reform process, but has also been more successful in targeting women than the earlier SLAG programme. Findings further show that unlike the earlier (SLAG) programme, LRAD offers larger grants to wealthier and more-creditworthy beneficiaries and is therefore conducive to establishing farms owned and operated by individuals or by small groups of individuals. A small area (1,454 hectares) was transferred back to previously advantaged owners in 2002. Such transactions were not detected before 2002 and should be monitored to identify the underlining reasons for these sales. It is also recommended that research should be conducted to ascertain whether improvements in the rate of land redistribution in KwaZulu-Natal during 2002 will be sustained in the future. / Thesis (M.Agric.Mgt.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

South Africa’s history of the disempowerment of black people (Africans, Coloureds, Indians, and Chinese), presented the post apartheid government after 1994 with problems of policy formulation around empowerment of the previously disadvantaged groups (PDGs). In the wine industry, one possible way of addressing inequality in the access to economic resources and racially skewed land redistribution is through empowerment labelling of wine. Empowerment labelling of wine may promote competitiveness of wine businesses owned by the PDGs. This will help to address inequality problems in the sector. Skinner (2007) demonstrated that empowerment labelling can benefit South African wine firms in international wine markets because empowerment and Fairtrade labelled wines benefit from import preference in most European Union (EU) countries. This study investigates one possible way in which empowerment labelling may benefit wine firms on the domestic markets for wine. Several wine brands with empowerment attributes are currently traded in domestic wine retail markets in South Africa. Very few of these wine brands are broad-based black economic empowerment (BBEE) brands. If South African wine consumers value black economic empowerment in the wine industry, empowerment attribute labelling may be used to identify empowerment products, and thereby promote the competitiveness of Black Economic Empowered wine businesses. This study sets out to quantify South African wine consumers’ willingness to pay (if any) for empowerment labelled wines. Data for the study were collected in 2007 and 2008. Two methods were used for this purpose using two case studies in the KwaZulu-Natal Midlands. The first method used a revealed preference technique to determine whether a price premium exists on the current wine prices or not. Using the hedonic price analysis technique, linear and log-linear hedonic price functions for wine for two wine retail outlets in the KwaZulu-Natal Midlands were used to estimate the price premium paid for empowerment attributes in this domestic wine retail market. Explanatory variables which were found to influence wine prices were Platter’s Wine Guide quality rating, Reputation of the winery, and BBEE. Tests on the statistical fit of the models using the Park Test and residual scatter plots indicated that the log-linear model had better data fit. These two models could not be compared using the more traditional R squared and F-statistics as they had different dependent variables. The second method used a stated preference technique to estimate wine consumers’ willingness to pay for empowerment attributes of wine in the Kwazulu-Natal Midlands. Personal interview surveys of consumers at a wine cellar were conducted. The monetary value of these consumers’ willingness to pay was quantified using conjoint analysis and the conditional logistic model. Although the revealed preference techniques for consumer willingness to pay for empowerment labels showed that a negative price premium exists for these wine attributes, the stated preference technique revealed a positive willingness to pay for empowerment attributes. The monetary values could not provide the actual willingness to pay as they tended to be close to the hypothetical price of wine used in the questionnaire. This might be attributable to the prices used in the questionnaire not capturing the average actual wine prices for this specific wine retail outlet. Therefore, the monetary values were used as indicators of the ordering of attribute importance by the consumers. The results also indicated that an information gap between consumers and producers may exist. This implies that, provided that consumers are made aware of these attributes, there may be potential for wine producers to earn a price premium on empowerment attributes. Further research is required to determine whether South African wine consumers (a) value empowerment attributes (using stated preference techniques), and (b) are aware of wine brands that have empowerment attributes. The results of this study would aid government in formulating policies that promote the competitiveness of empowerment attributes such as giving machinery or inputs procurement rebates to wineries that are broad-based empowerment compliant, and in so doing, improve the economic position of previously disadvantaged groups. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2011.