Socio-economic factors influencing farmers decision to participate in the Agro-processing industry in Gauteng Province.
Khoza, Thulisile Mavis
Khoza, Thulisile Mavis
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Abstract
Smallholder farmers in South Africa have not been linked successfully to sustainable agro-processing value chains. Hence, their participation in agro-processing is deemed minimal and insignificant. The aim of the study was to identify smallholder farmers participating in agro-processing and factors influencing their choice of participation, as well as the extent of participation. The study was conducted in Gauteng Province, South Africa, on a purposive selected sample of 102 smallholder farmers. Data was collected through a structured questionnaire that was administered face-to-face with respondents. The double-hurdle model was used to analyse factors influencing the decision to participate and the extent of participation. This model was used because it accounts for whether or not smallholder farmers participate in the agro-processing industry, and the extent of their participation. The results revealed that only 19% of the sampled respondents participated in the agro-processing industry of Gauteng Province, and that factors such as farming experience, land tenure, distance to market, and information have a positive influence on agro-processing participation; however, off-farm income negatively influenced the decision to participate. The study also revealed factors that influenced the extent of participation, this is, age, household size, area under production, labour, training, and type of enterprise (grain and livestock farming). Moreover, factors influencing both the decision to participate and the extent of participation were uncovered (educational level and livestock farming). However, there are challenges that need to be addressed in order for them to participate to their potential (this is, lack of access to agro-processing training, lack of access to information, and distance to market). The study recommends development of strategies that could realistically increase access to friendly investment capital to the younger generation to start their own small-scale agro-processing businesses, intensification of awareness of farmers on micro-financing institutions, encouraging and creating a conducive environment for smallholder farmers, building local agro-processing plants and make efforts in capacitating graduates with agro-manufacturing or processing knowledge and skills as a way of obtaining intellectual insights into agricultural development, which is otherwise unfairly identified by the less educated.
Description
Submitted in partial fulfilment of the requirements of the degree of Magister Technologiae: Agriculture in the Department of Crop Sciences, Faculty of Science at the Tshwane University of South Africa, Tshwane, Gauteng Province, South Africa.
Date
2019-03-01
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Tshwane University of Technology
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Keywords
Agro-processing industry, Smallholder farmers, Double-hurdle model, Participation.