A framework for the development of management skills for co-operative development in an agri-business value chain in South Africa

Abstract

This research investigates the management functions and skills required for co-operative development within the agri-business value chain in South Africa. The study was conducted in Mpumalanga province within South Africa. The province spent close to ZAR50 million through the Comprehensive Rural Development Programme (CRDP) in an endeavour to use the Co-operative model as a vehicle to create viable agri-business enterprises capable of alleviating poverty through creation of employment. The purpose of this research is to determine the challenges faced by emerging farmers in co-operatives from advancing within the agri-business value chain in order to perform and sustainably participate in the main stream economy. A survey methodology was sent to a stratified sample of farmers in two regions (Highveld and Lowveld) of Mpumalanga, measuring how people felt based on their past farming experiences. In the 131 participants surveyed, it was found that there was little difference observed between the two regions with regards to the main challenges being management capabilities and access to markets. However, the following management skills are required to survive in this market, i.e. market research and marketing, financial management as well as processing of products which will allow them to expand along the value chain. This means that the Government can employ these outcomes to strengthen the Agri-business value chain thereby possibly decreasing the high unemployment rate in Mpumalanga. Agriculture, a sector that can play a very significant role in improving the socio economic standards of South Africa, therefore investing in this sector strengthens the future of the society.