An empirical analysis of factors affecting the growth of small-scale poultry enterprises in KwaZulu-Natal

Abstract

Small-scale commercial poultry enterprises are often promoted and used by the government and non-governmental organisations in development projects to generate income and to improve food self-sufficiency and alleviate malnutrition, as poultry is an excellent source of protein. This study shows that the majority of small-scale commercial poultry producers in KwaZulu-Natal come from previously disadvantaged communities and have significantly lower enterprise growth rates than larger poultry producers. The results of a block-recursive regression analysis of data gathered from a sample of 123 poultry farmers in the province indicate that enterprise growth rate is constrained by poor access to credit, high transaction costs and unreliable local markets. Government policies should focus on reducing transaction costs by improving education and physical infrastructure, sponsoring training and mentoring services for small-scale commercial poultry producers, and helping these emerging entrepreneurs to formalise the business institutions needed to manage co-owned resources and to market products collectively.