The socio-economic analysis of sugarcane production by smallholder sugarcane farmers in the KwaZulu-Natal province
Dube, Nthabiseng
Dube, Nthabiseng
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Abstract
Despite being a competitive player in the global market and making a significant contribution to the national economy, the South African sugar industry is facing some challenges. Limited access to finance, high input costs, declining productivity, and fragmented input markets are all obstacles that are slowing down agricultural development. The objective of this study was to identify the factors that affect farm income and the socioeconomic factors that influence sugarcane productivity. The South African Growers Development Association provided a database of smallholder sugarcane growers in the iLembe district for this study. Using a random selection method, we chose 93 smallholder sugarcane producers from the database. We collected primary data through structured questionnaires that covered farmer demographics, farm characteristics, and support services. To understand the participating smallholder farmers better, we analyzed the data using descriptive statistics like percentages, means, standard deviation, and frequency distribution. Additionally, we used the Ordinary Least Squares (OLS) technique to uncover the predictors of farm income and the factors influencing sugarcane yield among these farmers. Based on our findings, we discovered that 58% of the farmers surveyed were male, and 32% were from KwaDukuza, Maphumulo, and Ndwedwe. Notably, none of the farmers lacked formal education. 87% of the farmers had completed high school, and 89% found agricultural instruction useful. As for the crops, the majority of farmers grew N55 sugarcane (51%), but interestingly, 92% said they would consider planting vegetables as an alternative crop. In terms of productivity, 89% of farmers considered land as a major limiting factor, while extension services were not seen as a constraint. Regarding farm income determinants, our study revealed that factors like education level (p>0.1), farming experience (p>0.05), average yield (p>0.00), and average recoverable value (p>0.00) all have a positive impact on farm revenue. On the other hand, the usefulness of trainings (p>0.04) and access to land (p>0.03) were found to have a negative impact on agricultural revenue. Furthermore, the results showed that factors such as education level (p>0.28), farm income (p>0.00), farming experience (p>0.17), usefulness of trainings (p>0.05), average recoverable value (p>0.00), distance to mills (p>0.06), and drought (p>0.01) have a negative effect on sugarcane production. Based on these findings, our study proposes that all stakeholders, including the government, agricultural groups, schools, and nonprofits, join forces to improve sugarcane farmers' access to education and training programs. These programs should be specifically designed to help farmers enhance their farming techniques and business skills. To mitigate the negative impact of drought on sugarcane production, it is important to promote the use of drought-resistant crop varieties. Integrating smallholder farmers into the larger sugarcane value chain can be achieved by improving market access and enhancing value chain coordination. This approach will not only help overcome fragmented input markets but also increase productivity. By implementing these proposals, we can create a more resilient, inclusive, and prosperous sugarcane industry that benefits both smallholder farmers and the national economy.
Description
A dissertation submitted in partial fulfilment of the requirements of the degree of Master of Agricultural Science, Department of Crop Science, Faculty of Science at the Tshwane University of Technology
Date
2024-01
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Tshwane University of Technology
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Keywords
smallholder farmers, sugarcane, KwaZulu-Natal, OLS, yield, income