Assessing profitability of commercial Black farming enterprises in Gauteng, South Africa.
Mbhele, Ayanda Thobile
Mbhele, Ayanda Thobile
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Abstract
The aim of this study was to examine the level of profitability of Black crop and livestock farmers’ enterprises in Gauteng Province. Data was collected using a structured questionnaire to survey a sample of 50 farmers, where a purposive sampling method was used. Descriptive statistics, gross margin analysis and OLS regression analysis were employed to analyse the data. The results indicated that livestock production is more profitable compared to crop production amongst the sampled farmers. The OLS analysis revealed that age and number of farm labourers negatively influenced profit from crop production, whereas farm experience positively influenced crop profitability. In the case of livestock production, gender, farm labour, land size and land ownership negatively influenced profitability; age, education, farm experience and distance to market positively influenced the profitability of livestock enterprises. Furthermore, the study recommended subsidising through input support or through allowing efficient pricing in input and output markets. Finally, the study recommended that credit-lending institutions need to stop excluding commercial Black farmers from borrowing money, because by lending them money it would improve their capital investment.
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Submitted in partial fulfilment of the requirements for the degree, Magister Technologiae: Agriculture in the Department of Crop Sciences, Faculty of Science at the Tshwane University of Technology.
Date
2018-11-05
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Tshwane University of Technology
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Keywords
Live stock farmers, Profitability, Enterprises, Black, Gauteng