Department of Agricultural Economics and Extension

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An Analysis of the Characteristics and Constraints of Small Holder Commercial Farmers in the Transkei Region, The Eastern Cape , South Africa
(University of Fort Hare, 2000-01) Nompozolo, Sivelile
The majority of the poor in South Africa are involved in subsistence Agriculture. An increase in productivity of the production of staple crops would be one direct way of increasing income of those households as well as increasing the per capita availability of staples. The increased availability of staples could also release resources that could be used· to purchase foodstuffs for a better balanced diet and therefore contribute to the improvement of the nutritional status of the household. The general problem of agricultural development may well be the most critical development issue in Transkei (Transkei Land Reform Research Group; 1995).
Analysis of decision making in smallholder irrigation practice: a case study of Shiloh and Zanyokwe irrigation schemes in central Eastern Cape, South Africa
(University of Fort Hare, 2014) Agholor, Azikiwe Isaac
The study was conducted in Zanyokwe and Shiloh smallholder irrigation schemes located in Eastern Cape Province at Amathole and Chris Hani districts respectively. The choice of Zanyokwe and Shiloh smallholder irrigation scheme for this study is mainly supported by the fact that it had a substantial level of crop farming activity taking place especially at Zanyokwe while the Shiloh smallholder irrigation specialises dairy farming. The study examined decision making in smallholder irrigation practice with particular reference to Shiloh and Zanyokwe irrigation schemes. The general objective of the thesis was to analyse and model the determinants of SIS farmer’s decision making. The specific objectives of the study are as follows: to investigate the determinants of decision making among smallholder irrigation farmers; to examine the relationship between household and farm characteristics and institutional factors that explain decision making in smallholder irrigation scheme; assess the contribution of smallholder irrigation farming to household food security; and determine the production and marketing constraints of smallholder farmers‟ in both schemes. The theoretical and conceptual framework of the study gave a detailed discussion on the determinants of decision making of households. The theories used to understand household behaviour under different assumptions were variously discussed. Comprehensive illustrations of analytical framework of the study were also conceptualised. This study used a survey design, quantitative and qualitative research methodologies involving the use of questionnaires and focus group discussions. The data was coded and analysed using the Statistical Package for Social Science (SPSS). However, frequencies, percentages, bar and pie chart was also computed to describe the data. In consideration of the conceptual framework of the study, the agricultural household model was adopted to analyse smallholder farmer’s household decision making Twenty one explanatory variables identified in the conceptual framework of the study were discussed and some of these identified variables were incorporated into the model. The logistic regression model was used as a method of analysis because it can estimate the probability of a certain event occurring and it accommodates a lot of variables which can be ranked in order to illustrate which variables are significant. In the binary logistic model used, seven variables (farm experience, size of farmland, land rights/PTO, water sufficiency, farm asset, market information and production variation) out of the twelve predictor variables were found to have significant effect on influencing household decision making in Shiloh smallholder irrigation scheme, while five variables (gender, age, education, road distance and extension access) were not significant. Of the seven significant variables, four had positive signs (land rights/PTO, water sufficiency and market information); which means that an increase in either of these variables may be associated with an increase in household decision making in Shiloh. The other three predictor variables (farm experience, farm asset and product variation) had negative signs; this means an increase in either of these variables may be associated with a decrease in decision making. In Zanyokwe, six variables (farm experience, land rights/PTO, water sufficiency, farm asset, market information and production variation) out of the twelve predictor variables were found to have significant impact on influencing household decision making, while six variables (gender, age, education, size of farm land, road distance and extension access) were not significant. Of the six significant variables, two had positive signs (water sufficiency and farm asset); which means that an increase in either of these variables may be associated with an increase in household decision making in Zanyokwe. The other four predictor variables (farm experience, land rights/PTO, market information and product variation) had negative signs; this means an increase in either of these variables may be associated with a decrease in decision making. The study concludes that smallholder agriculture is essential for employment generation and food security of households. It is apparent that household food security will not be achieved without giving attention to the role played by smallholders‟ farmers in South Africa. It is pertinent to promulgate an efficient policy programme to address the diversity of smallholders‟ situations and identify the main constraints on investment. Therefore, all spheres of government, the private sector and NGOs should consider investment in smallholder agriculture through coordinated strategies and political support. This study also recommends that government should develop a strategic Smallholder Investment Plan which would improve investments in smallholder agriculture.
Analysis of entrepreneurial behaviour of smallholder irrigation farmers: empirical evidence from Qamata irrigation scheme
(University of Fort Hare, 2014) Chitsa, Gilbert
Albeit much effort having been put to review the performance trend of smallholder irrigation farmers in South Africa. However, there seems to be a paucity of information regarding the level of entrepreneurship on these farmers. Most research works on smallholder irrigation farmers have mainly focused on livelihoods trajectory providing a review on how the welfare of the rural poor has been transformed after the introduction of irrigation schemes. With most research evidence indicating a high degree of underperformance on most smallholder irrigation schemes, this research attempted to investigate the level of entrepreneurship among the small holder irrigation farmers. In order to achieve the main research objective, a sample of 110 farmers drawn from Qamata irrigation scheme was interviewed and each farmer’s performance on the nine components of entrepreneurship was assessed. The aspects assessed to determine the farmer’s entrepreneurial behaviour were: planning ability, risk taking, achievement motivation, leadership ability, Cosmo politeness, decision making, and innovativeness and farming knowledge. Basing on previous studies which indicated entrepreneurial behaviour to be influenced by several factors the study also analysed the determinants of entrepreneurship among the irrigation farmers and a binary logistic regression model was used to establish the connection between various independent variables and the farmers’ entrepreneurial performance given as a total score of the nine components. Though the findings of the study revealed a prevalently low level of entrepreneurship among the smallholder irrigation farmers on Qamata irrigation scheme, a high proportion of the respondent farmers (65.5% and 60.5%) showed to have a high degree of achievement motivation and decision making ability, respectively. The observed trend thus reflected that smallholder farmers have a potential to become entrepreneurs and are willing to succeed. The binary model results revealed that the prevailing land tenure system will be a strong determinant of the farmer’s level of entrepreneurship. Equally, levels of training in farming, motive for farming and information seeking tendency also proved to have a significant influence on the degree of farmer entrepreneurship. Based on the results of this study recommendations have thus been drawn on the need for policies and practices aimed at promoting entrepreneurship and not dependency among farmers. Key focus areas identified include: the need to revise the current land tenure system on irrigation schemes, intensify on entrepreneurship training for both farmers and extension officers and regular on-farm training on new technologies.
Analysis of marketing channels used by smallholder crop farmers in Vryheid (Abaqulusi) Municipality, Kwazulu-Natal
(University of Fort Hare, 2014) Ntshangase, Muziwandile Gift
A total of 120 structured questionnaires were administered to analyse marketing channels used by smallholder crop farmers, at Abaqulusi Municipality, Vryheid and KwaZulu Natal Province, South Africa. Research methodology consisted of research design, sample frame, sampling procedure, data collection and data analysis which were used in the study. Descriptive statistics analysis was used, where frequencies and percentages of the variables were indicated. Variables which were measured included demographic socio-economic profile of survey household heads where age, marital status, educational level, occupation other than farming, land ownership, household size and gender of the household heads.The results show that the statistically significant variables (gender, household size) at 5% level positively affect smallholder crop farmers’ access to market information, expertise on grades and standards, availability of contractual agreements, existence of extensive social capital, availability of good market infrastructure, group participation and reliance on tradition. These findings suggest that an adjustment in each one of the significant variables can significantly influence the probability of participation in either formal or informal marketing, and hence their marketing channels. In the light of the foregoing research findings, several policy options were suggested. These include encouraging collective action, promotion of contract farming, ensuring the availability of market information to all farmers, encouraging value addition and investment in rural infrastructure.
The analysis of the economic impact of climate change on maize production under different farming systems : the case of smallholder farmers in Jozini Municipality, KwaZulu Natal Province, South Africa
(University of Fort Hare, 2014) Nxumalo, Bongiwe G.
Maize is the most grown crop by the farmers in Jozini. Therefore, the main objective of the study was to assess the economic impact of climate change on maize production under different farming systems in Jozini Municipality in KwaZulu Natal (KZN). The study was looking at the smallholder farmers producing maize under dryland and irrigation system. A total of 100 farmers were selected for the study (40 from dry-land and 60 from irrigating farmers). Cluster and random sampling procedures were used to select the sample. Questionnaires were used for the collection of primary data, from the respondents (maize farmers). Data was analysed using descriptive statistics (frequency, percentages), gross margin, regression analysis and the Ricardian model. Data for computing gross margins and net revenue was taken from the on-farm trials. Gross margin was used on regression analysis and the net revenue was used on the Ricardian model. The results of the regression analysis indicated that land size, farmer’s experience to farming, level of education, use of fertiliser, use of irrigation and the yield obtained were significant and have a positive relationship with farmers gross margin. The results of the Ricardian model indicated that climate change affects both farming systems, but farmers that are producing under dryland are the most affected farmers because they rely more on climate variables especially rainfall for their production. So a change in climate variables affects maize farmers’ productivity and thus affecting farmers’ gross margin and net revenue. The study recommends that the farmers must use irrigation in order to support maize production even in the absence of rainfall. Farmers must also adapt to the short growing season so that they will be able to produce even in the presence of climate change.
Assessing the impact of primary agricultural co-operative membership on smallholder farm performance (crops) in Mnquma Local Municipality of the Eastern Cape Province
(University of Fort Hare, 2014) Mzuyanda, Christian
When the issue of economic growth and development of a developing country is raised, one has to take into account the performance of the smallholder farmers, especially where the agricultural sector is an important employer of labour and source of livelihoods. Reducing the challenges they are facing and utilizing their potentials can help to accelerate the transformation of the agricultural sector and economic development of the country as a whole. Agricultural cooperatives are ideal means for self-reliance, higher productivity and promotion of agricultural development. Therefore, the major concern of this study is assessing the impact of cooperative membership on farm performance in Mnquma Local Municipality. In order to address these issues a structured questionnaire was used to interview 100 farmers. Farmers were divided into two groups, one group consisting of fifty members of agricultural cooperatives and the other fifty non-members of cooperatives; all these farmers were randomly selected from Ngqamakhwe, Butterworth and Centane in Mnquma. The study investigated and profiled the socio-economic situation of the farmers. It also undertook a comparison of the members and non-members of the co-operatives in terms of their production and marketing activities. To analyze the data, descriptive and inferential statistics were used to explain some measures of central tendency and dispersion as well as test the hypothesis that there is a difference in performance between members and non-members of cooperatives. In addition, a simple linear regression model was used to assess the impact of cooperative membership on farm performance. To avoid selection bias that arises from the use of the simple linear regression model, the propensity score matching was also used to test the effect of different treatments on the sample. The expected results were that members of cooperatives perform better in terms of farm revenues, incomes and value of inputs used than non-members. In addition, the expectation was that members of cooperatives have larger plots of land, high crop yields hence generating high revenues per unit sold. The results from the field survey indicated that cooperative membership is positively related to performance (including revenue, farm income and value of inputs used), although some development programmes are needed to enhance performance of these farmers. Members of cooperatives produce and sell large quantities of output compared to non-members. This could be attributed to the fact that cooperative members receive farm inputs and extension support. Because of the frequent visits by extension officers, members of cooperatives have high access to market information. The results further confirm the hypothesis that membership in a cooperative has a positive impact on farm performance. The results from the first regression model indicated that membership in a cooperative has a positive and significant influence (p=0.004) on farm income, and (p=0.124) on revenue. The second regression model indicated that membership of cooperatives has a positive and significant influence of (p=0.007) on farm income, (p=0.138) on revenue. With regards to value of inputs, membership was found not significant at 1%, 5% and 10% levels. The age of household head, number of years spent in school, land size, access to information, type of market and ward in which these farmers are situated significantly influence farm performance at 1%, 5%, and 10% levels. Propensity score matching also confirms this hypothesis that membership was significant in respect to farm income (p=0.006) although not necessarily so in respect to revenue (p=0.088). While the study confirms the positive contribution of cooperatives, it is clear that more needs to be done to achieve greater inclusivity and make livelihoods improvements more sustainable. This calls for interventions from government and NGOs to motivate individual farmers to join cooperatives and operate within the framework of organized groups. The support could be provided in terms of credit to farmers, extension services and infrastructure development to serve smallholder farmers. In terms of further research, the study suggests that research on cooperative membership impact on farm performance in all forms of cooperative would yield immense insights for policy. Also, the present study was limited to only one municipality and it is necessary to conduct similar studies in other parts of
Assessment of the performance of smallholder irrigated sugarcane farming in Maphumulo Municipality of KwaZulu-Natal Province
(University of Fort Hare, 2014) Mdletshe, Sifiso Themba Clement
Kwa-Zulu Natal (KZN) is mainly composed of small-scale farmers with low production capacity and knowledge (ISRADS, 2004). The general problem is the performance of smallholder irrigation schemes, issues that cause low productivity; whereas the cost of purchasing machinery is too high. In the rural areas the majority of the people are unemployed due to different reasons such as lack of employment opportunities available to them, lack of skill, and low level of education and mostly they are inexperienced. This study identifies theperformance of irrigation projects amongst smallholder sugarcane farmers in KwaZulu Natal in order to uplift the livelihood of smallholder sugarcane production as well as its sustainability.This was done on the basis of demographics, historical background and agricultural potential. This dissertation will discusses all approaches used to conduct the study. The dissertation also describes the analytical framework used in this study, namely: The research design, sampling, sample size, data, data collection procedures, model description and the specific analyses carried out to address the study objectives. The results of net values of irrigated and non-irrigated lands, the irrigating households indicated13% of sugar cane production per hector more than non-irrigators. It is clearly indicated that water/ irrigation can contribute on maximizing sugarcane yield and promotes sustainability. Improving the technology from small scale growers’ point of view, extension officers from different areas that produce sugarcane should be scheduled to attend Refresher Courses at SASRI to train them on different aspect of irrigation management and sugarcane production. When there is newly established technology, such as invention of a new variety of sugarcane that is resistant to drought and diseases. It would be more essential for agricultural development to encourage government investment on more irrigation schemes facilities.
Barriers and incentives to potential adoption of biofuel crops by smallholder farmers in selected areas in the Chris Hani and O.R Tambo District Municipalities, South Africa.
(University of Fort Hare, 2014) Cheteni, Priviledge; Mushunje,V.
Since the launch of the Biofuels Industrial Strategy in 2007 by the South African government, only a few smallholder farmers have adopted biofuels for production. The government hopes to stimulate economic development and alleviate poverty by targeting areas that were previously neglected for agriculture by the apartheid government. However, there still appears to be a lack of a clear and comprehensive policy framework for the development of a South African biofuel industry, because the proposed initiatives have not been implemented to date. There are also concerns among stakeholders that government policy is taking too long to formulate, compounding existing uncertainty in the industry. This study therefore aims to identify barriers and incentives that influence the potential adoption of biofuel crops in selected areas in the Eastern Cape Province, South Africa. The study utilised a semi-structured questionnaire to record responses from 129 smallholder farmers that were identified through a snowballing sampling technique. Descriptive statistical analysis and a Heckman two-step model were applied to analyse the data. Analysis was done using SPSS 21 and EViews 8. Results obtained showed that the variables: arable land, incentives offered, challenges faced, labour source and farm experience were statistical significant at 5 or 10 percent p value to awareness of farmers to biofuel crops. Adoption of biofuel crops was statistically related to gender, qualification, membership to association and household size. The study recommends that the Biofuels Industrial Strategy Policy be revisited in order to have a mechanism of including smallholder farmers that it aims to empower with employment and improvement in their livelihoods. The government can help smallholder farmers by addressing the challenges they face in improving their output. Furthermore, it recommends that a national study on barriers and incentives that influence the adoption of biofuel crops be carried out in order to identify other factors that may hinder the Biofuels Strategy Policy aims in empowering the disadvantaged farmers.
Consumer perceptions and values on beef quality: Implications on beef markets.
(University of Fort Hare, 2014) Mabhera, Sunungukai
Beef constitutes an important part of many consumers’ diets. Beef is the most consumed red meat in South Africa. Consumer perceptions can affect the whole supply or value chain of beef. Recently there has been increased interest in food safety; greater concern for environmental and animal welfare issues, increased importance of eating quality and healthy food as well as the greater role of food services. The demand for beef is no longer limited to economic factors alone but to non-economic factors as well. Consumers of beef in Alice have become more concerned about meat-borne risks and personal health. This research prioritized the exploration of the beef consumers’ (i) self-perception (ii) price perception (iii) benefit perception [in the form of – (a) value perception and (b) quality perception]. The study was conducted in the Eastern Cape Province specifically in Alice town and the surrounding rural areas (Ntselamanzi, Gaga, Hillcrest, Gqumashe, and Dyamala) of the Nkonkobe Municipality. Anyone who admitted to eating beef and at the point of data collection bought beef for their own consumption or family consumption was deemed as a unit of analysis. Non – probabilistic sampling techniques which included accidental and random sampling were used to collect data from 100 interviewees. A semi structured questionnaire was used to analyse the perceptions and attitudes of beef consumers. The respondents were asked to indicate their agreement or disagreement with 47 statements or items presented on either five alternatives in a Likert scale scored from 1 (strongly disagree) to 5 (strongly agree) or a six Likert scale ranging from 1 (very low) through 5 (very high) to 6 (I do not know).The data was analysed using SPSS. It was discovered that beef consumers did not consider either intrinsic or extrinsic cues in isolation when purchasing beef but rather all characteristics contribute to the final perception. The Alice consumer market is heterogeneous and consists of different races with different cultures and market segments with varying needs and preferences. The results showed that five factors were extracted from forty seven items Factor 1: Information reliance and quality indication; Factor 2: convenience; Factor 3: Traceability and animal Welfare; Factor 4: Health and safety Conscious and Factor 5: Price and Branding. Furthermore, four main consumer segments emerged as - Segment 1: Informed buyers; Segment 2: Elite buyers; Segment 3: Health & safety conscious buyers and Segment 4: Apathetic buyers. The cluster analysis shows that quality is a subjective concept that is informed by a consumer’s personal taste and preferences. Taste and preferences inform the consumer’s effective demand which in retrospect is informed by the consumer’s socioeconomic status.
The design, implementation and effects of the Nguni project in the Eastern Cape Province of South Africa
(University of Fort Hare, 2009) Somoro, Lovett Mophethe
The main objective of the study was to examine the design, implementation and effects of the Nguni project in the Eastern Cape Province of South Africa. This was seen as an important exercise considering that most agricultural development initiatives in rural communities fail or their success rate has been low. Agricultural development initiatives should provide economic and social benefits, failing which; most well-intentioned initiatives result in adverse effects to the society. Therefore, an examination of the design, implementation and effects of the Nguni project would go a long way in helping to highlight and rectify pit-falls in similar future intended projects. A sample survey was conducted in Amatole, OR Tambo, Chris Hani, and Alfred Nzo District Municipalities, using structured questionnaires, supplemented by observation. The questionnaire covered demographic, management and personal aspects in order to elicit respondents‟ values, aspirations, experiences and perceived constraints. The data were analysed using descriptive and quantitative statistics. The findings indicate that the project was well designed and implemented, though its performance suffered from some problems that can be corrected through proper involvement of all the institutions involved.
Determinants of exchange rate volatility in South Africa
(University of Fort Hare, 2015) Dewing, Desiree
The rand is observed to have experienced volatility in recent times, which was particularly pronounced during times of crises such as the East Asian Crisis of 1998 and the global financial crisis of 2008. The purpose of this study is to identify key macroeconomic variables that determine exchange rate volatility in South Africa, and to also determine the contribution of each of these variables to volatility. The study makes use of quarterly data from 1994 to 2014. Volatility is measured by means of a generalized autoregressive conditional heteroscedasticity approach. Estimation techniques employed include the Johansen Co-integration and vector error correction model. Impulse response and variance decomposition analysis revealed that interest rate differentials account for most of the variation in exchange rate volatility (36 percent), followed by inflation rate differentials (31 percent), economic growth (3.5 percent), trade openness (0.45 percent), money supply (0.25 percent) and government spending (0.03 percent). Interest rate differentials and inflation rate differentials thus account for 67 percent of the 71 percent variation in exchange rate volatility in South Africa, with trade openness, money supply and government spending all being of low levels of significance. The large impact that monetary variables have on exchange rate volatility implies that policymakers should maintain sound monetary policies, ensuring that large unwarranted increases in interest rates do not occur in the bid to control inflation.
Determinants of rural households’ diversification of livelihood strategies: a case of Intsika Yethu farmers of the Eastern Cape Province, South Africa
(2014) Munhenga, Daniel
Despite the continuing perceived economic centrality of agriculture in Intsika Yethu local municipality, rural households engage and pursue diverse non-farm livelihood activities to cope with diverse challenges and risks such as drought. This study assessed the importance of existing livelihood strategies adopted by the different rural households in Intsika Yethu; the link between households’ ownership and access to different ‘assets’; factors determining households’ ability to adopt certain livelihood strategies in the area. A survey of 120 households in six administrative areas and informal discussions with key informants were used to collect demographic data, data on socio-economic activities and factors determining the choice of livelihood strategies of the households in Intsika Yethu. The research findings indicated that only about 10% of the interviewed households relied solely on on-farm livelihood strategy only. Credit, remittances, market distance, affiliating to cooperatives, education and household size have a potential of influencing households to shift from on-farm livelihood strategy to other livelihood strategies. The government may need to promote programs and awareness on how households can diversify their livelihood strategies as a way of coping with economic constraints in the area.
The economics of Bt maize/yieldgard production : case of smallholder farmers in the Eastern Cape Province
(University of Fort Hare, 2011) Mandikiana, Brian Washington
Maize is the staple food for most South Africans. This implies that any damage to the maize crop will affect food security of many South Africans. Although Eastern Cape Province is not a traditionally maize producing area, smallholder farmers in the province produce it mostly for subsistence purposes and some sell the surplus on the local market or use it to secure other good through barter trading. In South Africa, insect-resistant Bt maize/yieldgard has been used commercially for approximately 10 years now. Available impact studies on Bt maize reveal that, this technology is beneficial not only to farmers but consumers of maize products as well. Welfare gains as well as positive effects for human health are realised by both groups. Due to the costs and effectiveness associated with traditional and conventional maize stem borer control methods, Bt technology has the potential to be part of the solution. This thesis has attempted to investigate the economic viability of planting Bt maize seeds under smallholder farming conditions and identify factors as well as perceptions relating to attributes of Bt maize and to analyze the relationships between those perceptions and choices regarding use of Bt technology. Data was collected from 90 households who were selected using purposive sampling through the use of the snowball method. To collect data, a questionnaire was administered through face-to-face interviews. Gross margin analysis revealed that Bt maize is a more profitable option as compared to conventional maize seeds. Furthermore, econometric analyses, through use of the binomial regression model revealed that perceptions could be used to distinguish between users and non-users of Bt maize seed in the Eastern Cape Province. Results of inferential analysis indicate that the statistically significant variables at 5% level are gene erosion, quality and nutrition of products and food labels for Bt maize products perceptions. On the other hand, low expenses, seed market availability and farmers’ knowledge perceptions were significant at 10%. These findings suggest that an adjustment in each one of the significant variables can significantly influence the probability of Bt maize adoption. In view of the research findings, several policy proposals are suggested to support policy formulation. Key words: Bacillus thuringiensis (Bt) maize, yieldgard, smallholder farmers, perceptions, Flagstaff, gross margin analysis, binomial logistic regression model, Eastern Cape Province. Results of inferential analysis indicate that the statistically significant variables at 5% level are gene erosion, quality and nutrition of products and food labels for Bt maize products perceptions. On the other hand, low expenses, seed market availability and farmers’ knowledge perceptions were significant at 10%. These findings suggest that an adjustment in each one of the significant variables can significantly influence the probability of Bt maize adoption. In view of the research findings, several policy proposals are suggested to support policy formulation.
Economics of wetland cultivation in Zimbabwe: case study of Mashonaland East Province
(University of Fort Hare, 2009) Taruvinga, Amon
Wetlands are stocks of natural resources limited in supply, in the middle of unlimited human wants with multiple uses to society, presenting an economic problem in as far as their rational and sustainable use is concerned. To that end, conflicting recommendations have been forwarded regarding wetland cultivation as a possible land use across the globe and from within the same regions. On one extreme, wetland cultivation has been linked to degradation of wetlands with pure wetland conservation as the prescribed viable and sustainable land use option to society. Closer to reality, partial wetland conversion to crop land has been found compatible with wetland bio-diversity; implying that partial wetland cultivation is the prescribed wetland use option viable and sustainable to societies, a dictum mainly claimed by rural communities. With that conflicting background and based on the “Safe Minimum Standard” approach, a ban on wetland cultivation was maintained in several early environmental policies in Zimbabwe as a basis for legislative protection of wetlands, a position that is still legally binding in current statutes. Contrary to that, rural communities have responded by invading wetlands as a coping strategy in pursuit of the claimed values of wetland cultivation, further conflicting with standing policies. This scenario has managed to “lock” and is currently locking the claimed 1,28 million hectares of wetlands in Zimbabwe in a “legal-operational impasse”, at a cost to the entire nation since no meaningful investment is possible in wetlands when there is a legal conflict. Viability of wetland cultivation is therefore questionable, which warrants further investigation towards appraising wetland cultivation as a possible land use in rural areas. The connection between wetland cultivation and household food security also requires further exploration with the implicit goal of quantifying the claimed value attached to wetland cultivation. For purposes of regularising wetland cultivation in the event of a significant contribution of wetland cultivation to humanity, socio-economic factors influencing households to participate in wetland cultivation become necessary towards crafting of wetland cultivation transfer user rights. From a policy realm, such an analysis would provide an economic body of evidence to support the economic pillar under sustainable development ecology and the social pillar before a policy shift can be imagined. In an effort to appraise and explore the economic body of evidence as the economic pillar behind wetland cultivation from a sustainable development point of view amid conflicting recommendations, a case study of Mashonaland East Province in Zimbabwe was conducted to investigate the economics of wetland cultivation. Using Gross Margin Model, the Return per Dollar Variable Costs Invested and the Net Present Value approach, profitability of wetland cultivated crops was estimated. To further quantify the viability of wetland cultivation, the contribution of wetland cultivation to household food security was investigated using Kendall`s tau_b and Spearman`s rho non parametric correlation models for estimation of the systematic relationship that could exist. Using Cross Tabulation association and directional measures, the significance and direction of the systematic relationship postulated by correlation models was quantified. Building on these analyses the actual contribution of wetland cultivation to household food security was deduced using the Relative Risk Estimate – Odds Ratio approach. The study went on to estimate factors capable of influencing participation of households in wetland cultivation for purpose of policy guidance in the event of transfer of wetland cultivation user rights to communities using a Binary Logistic Regression model. The study concludes that wetland cultivation under rural setting was profitable, with a significant positive linear correlation to household food security to such an extent that wetland cultivators were more than twice food secure than non wetland cultivators at net food security level of households. Household head age, distance to wetland area and availability of wetland restrictive measures were chief factors capable of positively influencing participation of households in wetland cultivation. Household head education, amount of livestock units and household size were negatively related to participation. The study therefore calls for promotion of partial wetland cultivation from a rural setting through lifting of the technical ban in wetland cultivation as currently contained in the environmental legal framework of Zimbabwe. Caution however should be taken in crafting transfer user rights amid mixed perceptions from society and general scarcity of wetlands in relation to potential demand from society. The negative relationship between participation and household head education as well as the young households further casts a bleak future for wetland cultivation as a possible land use option in Zimbabwe. The study recommends targeted awareness campaigns to correct current mixed perceptions in societies regarding wetland cultivation and grouping of communities in wetland cultivation schemes to accommodate the potential shortage that can cause scramble and conflict.
Effect of agricultural extension services on beneficiaries of the Nguni cattle project: the case of Ncera and Kwezana villages, Eastern Cape Province
(University of Fort Hare, 2013) Gwala, Lindokuhle
The study was conducted to determine the effect of agricultural extension services on beneficiaries of the Nguni Cattle project in Ncera and Kwezana villages, both in Nkonkobe local Municipality of the Eastern Cape Province. The objectives of this study were to determine the quality of extension services offered to the beneficiaries of the Nguni cattle project, relationship between extension officers and beneficiaries of the project, lastly was to determine communication strategies used by extension officers to communicate with the project beneficiaries. A total of 73 Nguni cattle project beneficiaries were interviewed. Semi- structured questionnaires were administered to the beneficiaries of the project who were willing to participate in the study. Xhosa speaking enumerators assisted in data collection. Focus group discussions were later carried out in both villages to determine effect of agricultural extension services on socio-economic status of the beneficiaries. The focus groups were divided into three groups of different ages and gender. The majority of the beneficiaries in the project were males (62.2 % Ncera and 75% Kwezana). There was an association between gender and extension services. Farmers depended on different sources of income. Old age pension and animal sales being the main contributing sources and also having a significant difference. The results of the study further revealed that the beneficiaries were faced with cattle production challenges, lack of extension support services being the main challenge. The results of the study indicated that the majority of beneficiaries had no access to extension services. Only 37.8% and 32.1 % at Ncera and Kwezana respectively reported that they had access to extension services. Although the latter is the case it was further explained by the beneficiaries that extension services offered to them were of poor quality due to poor communication strategies used to provide these services. Beneficiaries also reported the relationship between them and extension officers’ as poor. It was concluded that extension services had an effect on beneficiaries of the Nguni cattle project, largely based on the constraints they face on the project and limited access to extension services.
Effect of irrigation farming potential on commercialization of smallholder farming in the Eastern Cape Province of South Africa
(University of Fort Hare, 2014) Sipoko, Nomava
Enhancement of smallholder production to improve rural livelihood is an important policy goal in developing countries. Research findings indicate that smallholder production can be improved through establishment of new smallholder irrigation schemes, and the rehabilitation of abandoned ones. Smallholder irrigation has a potential to contribute significantly in shifting smallholder farming to commercial farming. Although the roles of irrigating farmers are clearly defined, smallholder farmer’s development results in South Africa have been disappointing. The performance of smallholder irrigation is unsatisfactory. Smallholder irrigation has failed to improve the standard of living and livelihoods of smallholder farmers in South Africa. The majority of farmers are still producing at subsistence level. This study, therefore, aimed to contribute to smallholder irrigation literature in two ways; firstly by evaluating the extent of irrigation participation of smallholder farmers towards commercialization in the study areas. The study also examined the determinants of irrigation participation among smallholder farmers. A sample of 80 households was drawn by random sampling of smallholders in four villages as follows: 40 respondents from Mgxabakazi and Dinizulu villages and 40 respondents from Ncorha flats and Tshatshu. The sample included both irrigators and non-irrigators. Descriptive analysis shows that irrigators had better production and wellbeing than non-irrigators. For the inferential analysis of the data, two models were employed namely, Binary Logistic Regression Model (BRM) and Truncated Regression Model (TRM). The Binary Regression model was used to predict the probability of farmers participating in irrigation schemes. Whether or not a farmer participated in irrigation was introduced as the binary dependent or response variable that could be explained by a range of explanatory or predictor variables such as source of water, land size, ability to sustain business, membership in the scheme, market access, availability of the irrigation system, willingness to irrigate, farming type commercial or subsistence and institutional support services. From these predictor variables, being part of the irrigation, ability to sustain business and market were found to be factors influencing farmer’s decision to participate. The second model required the in-depth investigation of the influence of irrigation participation as reflected by extent of commercialization. In order to do this, the level of commercialization was measured by calculating Household Commercialization Index. Then the truncated regression model (TR) was used to test the factors that affect the level of commercialization for the farmers who are participating in the irrigation schemes. Age, irrigated land, willingness to commercialize and gross value of production were found to exert strong influence on the level of commercialization among farmers participating in irrigation. The study recommends that investments in smallholder irrigation should receive high priority, with emphasis on collective action, promotion of contract farming and strengthening the support services from government and the private sector, and ensuring enhanced access to market to all farmers.
Effectiveness of commodity pricing along the pork value chain in Zimbabwe : a case of Mashonaland Central Province
(University of Fort Hare, 2016) Ngarava, Saul
The main objective of this study was to give a reflection of the pricing strategies, articulate organizational attitudes; feelings and behaviour regarding these strategies and how they all influence value creation within agribusinesses in the Zimbabwean pork industry. The research hypothesis is that the particular pricing objectives, strategies and policies utilised have an indirect influence on how organizations create value. Specifically, the research sought to determine influence of marketing in value creation, establish influence of price in marketing mix, ascertain pricing strategies, determine influence of attitudes, feelings and behaviours and measure pricing efficiency. Utilising interview-administered-questionnaires, the study sought responses from strata of producers, abattoirs and retailers in Mashonaland Central Province of Zimbabwe totalling a sample size of 226 respondents. The study utilised a cross sectional survey research design and quantitative research methods. The study utilised correlation analysis, ANOVA analysis, MANOVA analysis, multiple regression analysis and marketing margin analysis in establishing correlations, mean differences, influences and efficiencies in pricing. The study found out that marketing is not an influential value creating activity within the pork industry at p < 0.05. Price was also not the most influential marketing mix component within the industry. Most industry players were utilising formula prices, pursuing profit oriented pricing objectives through a one price policy, aiming for a low penetration price level policy, with no discount policy and managing a profit to cost ratio of between 0 percent and 4 percent. The most significant feeling was of being indifferent to a price change as it is offset by changes in units sold. Attitudes of industry players disregarding pricing mechanisms as long as it covers costs of production as well as substitute products determining prices were significant in influencing pricing objectives. Pricing within the industry was inefficient. The study recommends leveraging on the most influential industry value creating activity, which is production and processing, to take advantage of the myopic pricing objectives, lack of discount policy and avoiding substitutes. Also recommended is leveraging on the most influential industry marketing mix component, which is the product, to take advantage of lack of premium pricing, inefficient pricing and avoiding substitutes. Evading the low profit to cost ratio in the industry through utilising price flexibility policies and vertically integrating were also recommended.
Effectiveness of irrigation water management institutions in Zimbabwe: a new institutional economics theory approach
(University of Fort Hare, 2013) Nhundu, Kenneth
Water policymakers around the world currently face a challenging task of managing water resources that have deteriorated due to overuse or mismanagement and Zimbabwe is not spared in this challenge. The neo-classical economics approach is limited in its approach to water management and is increasingly being questioned on its ability to provide answers to the many economic problems and issues in low- as well as high-income countries. As such, there is scope for alternative, multi-dimensional approaches. The New Institutional Economics (NIE) tradition offers one such alternative and provides an exciting and challenging new paradigm. The NIE can provide an alternative and more holistic approach to agricultural water resources management. Institutions do structure economic forces and play an important role in expanding human choice, a fundamental goal of economic development. However, when considering agricultural water management, formal institutions tend to overshadow the local informal ones, although the latter guide the day-to-day interactions on water use. A study was carried out to evaluate how the formal water management institutions and the informal institutional arrangements influence irrigation water management in Mashonaland East Province in Zimbabwe. The objective was to evaluate the effectiveness and institution-performance linkages of the irrigation water institutions, with more emphasis on the effectiveness of formal and informal institutions in dealing with efficient irrigation water management. The NIE emphasises the need to focus, alongside formal institutions, on social institutions such as cultural norms and behavioural attitudes towards agricultural water resources. Therefore, this thesis presents the application of the NIE analytical framework to the problems of agricultural water resources management. The descriptive results of the study revealed the importance of both the formal and informal institutions in managing water resources, in particular, water law provisions to promote private sector participation, influence of other policies on the water policy, capacity to administer water resources and impact of private sector participation on water administration burden. However, most of the variables were either non-existent or non-effective to assist in the management of water resources. With regards to the role and significance of irrigation water management institutions in the management of water resources, the research found significant relationship between the formal- and informal institutions and their components. Notably was the significance relationship between the informal institutions and water law, policy and administration, with t-statistic values of 0.173, 0.314 and 0.279 respectively, which were all significant and positive at the 10% significance level. This suggests a clear relationship between the informal institutions and the formal institution, implying policy-makers cannot afford to ignore the informal institution when they are dealing with water management institutions. The study concludes that the interplay mechanisms between the formal and informal water institutions such water law, policy administration as well as norms, ideas and incentives do promote effective institutional interplay and may serve to overcome coordination problems of irrigation water management. Moreover, it is expected that institutional interplay will improve over time resulting in sustainable irrigation water management. The study concludes that informal water management institutions work together with the formal water management arrangements and should not be simply overlooked. In addition, future water irrigation management objectives in Zimbabwe must prioritise irrigation water development and management institutions in communal, small-scale commercial, and resettlement areas, both new and old schemes. Although markets were not under the scope of the study, they play a crucial role in poverty alleviation and rural livelihood improvement as they provide an arena in which agricultural produce is traded, and different services to the water sector are provided, and interactions with the wider economy, takes place. As such, there is need to open markets to new water users among communal, small-scale commercial and resettlement farmers and there is need for the government, private sector and non-governmental organisations to actively intervene and promote the engagement of new water users with markets. The study therefore recommends that the formal and informal institutions should be amalgamated to bring forth a real integrated irrigation water resource management framework. Water management practitioners, governments and private sector should not uncritically embrace the formal state-based institutions as a panacea for irrigation water management. The government, private sector, local water users and other stakeholders dialogue and agree on the basis, modality, policy and procedures for managing irrigation water resources.
Efficiency of Small Scale Farmers and Land Reform in Zimbabwe
(University of Fort Hare, 2001-02) Mushunje, Abbyssinia
The role and significance of agriculture in the Zimbabwean economy needs no further emphasis. The whole economy depends ~n a stable agrarian growth. Agriculture accounts for 11-14 percent of the GDP and contributes 33 percent of formal employment. Currently the government of Zimbabwe is forging ahead with its controversial Land Reform Programme. This is intended to achieve higher agricultural output, higher labour absorption and a
An evaluation of the effects of land tenure security in on-farm investment and on-farm productivity: a case of the smallholder farmers in the Amathole District of the Eastern Cape Province of South Africa
(University of Fort Hare, 2014) Zwelendaba, Vincent Vusumzi; Farms, Small -- South Africa -- Eastern Cape; Land tenure -- South Africa -- Eastern Cape; Land use, Rural -- South Africa -- Eastern Cape; Agricultural productivity -- South Africa -- Eastern Cape; Economic development -- South Africa -- Eastern Cape; Rural development -- South Africa -- Eastern Cape; Poverty -- South Africa -- Eastern Cape; Community development -- South Africa -- Eastern Cape
Smallholder agriculture contributes to poverty alleviation through food price reduction and employment creation. Smallholder farmers have the potential of creating employment because they are labour-intensive. Most small holder farmers in the Amathole District practices dual farming system i.e. crops and livestock production. However these farmers are faced by a number of constraints amongst these are land tenure security, lack of capital, drought, diseases, lack of access to markets and production inputs. The objectives of this study were: to investigate land tenure security impact on-farm investment and on-farm productivity by the smallholder farmers; to assess constraints encountered by the smallholder farmers, to identify factors influencing on-farm investment by the smallholder farmers and to identify factors influencing on-farm productivity by the smallholder farmers. Eighty smallholder farmers were interviewed using a structured questionnaire. The data was analyzed using descriptive statistics (frequency, percentages) and regression analyses. Data was for coded and processed for analysis using Statistical Package for Social Sciences (SPSS). The results revealed that generally, the household demographic characteristics have an influence on the decision to investment in the farm thus on farm productivity. These included age, gender, marital status, educational level and household size of the smallholder farmers. However the findings revealed that smallholder farmers were not much concerned with the land tenure security of the land as they see themselves as owners of these lands. The reason being that they always had access to their land and there were no perceived tenure insecurity threats. The majority of the smallholder farmers were not worried that they might lose their land in the future as they felt that their land tenure was secured. Although, the majority of farmers had some sense of security they still preferred a freehold tenure system as form of land tenure security. This suggests that there was a sense of insecurity among some of the smallholder farmers caused by their current tenure forms. Majority (66%) of the farmers held their land under freehold whilst leasehold and communal hold farmers constituted 5 % and 29 % respectively. Even though majority had freehold tenure system, they could not use their land as collateral when required for funding from the lending institutions because the title deeds were not registered in their names but those of deceased family members. As a result the majority was constrained by lack of credit and had low income. Lack of cash suggests that the farmers have difficulties in purchasing farm inputs and making necessary improvements and investments in their lands. Generally, the results of the survey suggest that the household demographics and socio-economic variables may have an influence on the on-farm investment and on-farm productivity by the smallholder farmers. Furthermore, besides the challenges with land tenure, there are other factors that are likely to influence on-farm investment and on-farm productivity. The results of the survey revealed that smallholder farmers were faced with lot of challenges. These included lack of access to markets, grazing land, credit, farm implements, productions inputs and irrigation water. In addition to this the smallholder farmers were faced with both crops and livestock production constraints. Crop production constraints included lack of access to labour, transport, capital, storage facilities, pests, diseases, lack of management skills and severe drought. Livestock production was constrained by diseases, theft, attack by wild animals, lack of fence in the camps, labour, vaccines, dipping facilities too far and severe drought. For both crop and livestock production diseases and drought were major concerns for smallholder farmers since they were dependent on rainfall for their farming activities. With regards to improvements and investment there was little or not much investment that has been made by the smallholder farmers. One of the reasons mentioned by the farmers as the main cause for little or no investments is the lack of capital to make such improvements or investments. The study also employed empirical analysis through employing on-farm investment and on-farm productivity models of the study on the factors influencing the on-farm investment and on-farm productivity by the smallholder farmers in the study area. In both models, the independent variables were tested for their significance and it was found that some variables were significant whilst others were not. With regards to the dependent variable on-farm investment, household socio-economic factors such as household size, educational levels and farm size, had a positive influence in on-farm investment and were also statistically significant. On the other side, factors such as land tenure security, age, gender, household income and access to markets did not have any influence and were not statistically significant. From the perspective of on-farm productivity variables such as farm size, access to credit and access to extension services had a positive influence. However, variables such as land tenure security, age household income, educational levels, access to implements, were negatively influencing on farm productivity by the smallholder farmers.

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