Abstract
Smallholder farmers in South Africa find it challenging to participate in the modern economy. Most of these farmers have limited access to credit and insurance, and to markets in which to sell their produce. This paper reviews ethnographic research data and argues that smallholder farmers struggle to take part in modern agricultural value chains in South Africa. System dynamics modelling is used to understand the dynamics relating to agricultural value-chain participants, and to determine whether the ethnographic research data is sufficient to answer the question as to which value-chain participants potentially have the largest impact on smallholder farmers. The modelling results show that banks may have the potential to trigger an impact on smallholder farmers’ productivity that could then attract other value-chain industries to take part in efforts to support these farmers. Smallholder farmers could become a long-term viable and sustainable option for increasing food security in South Africa. However, this study has its limitations. The data used from existing ethnographic research, conducted by way of semi-structured interviews with valuechain participants, is limited and is not able to answer questions such as: (i) how much each industry is prepared to engage with smallholder farmers in the event of other industries being prepared to do the same; and (ii) how long it will take each industry to react to a willingness to engage. Ongoing research is required to extend the interviewee base and data in order to answer these questions and for the model to be completed and used for policy guidance.
Highlights
Agricultural systems have a high impact on emissions, biodiversity and ecosystem services that humans depend upon
smallholder farmers (SHFs)? What policy instruments do we need to provide for the development of an inclusive system for SHFs? 4 How much do individual value-chain participants influence one another in supporting or not supporting SHFs to participate in the economy? 5 How can the risk in respect of agents be reduced when engaging with SHFs? 6 For policy purposes, which of the agents have the greatest impact in supporting SHFs, that is, if policy can be supportive of an agent? 7 How can exogenous variables that currently influence risk and engagement be changed in order to support value-chain industries’ engagement with SHFs?
Their subsequent research was aggregated into a system dynamics model used for building scenarios for policy development around research on sustainable cropping systems (Blignaut et al, 2015; Midgley et al, 2015). This system dynamics model did not investigate the dynamics and complexity of the challenges facing SHFs in participating in modern agricultural value chains. These challenges, we argue, require investigation of the dynamics and complexities that exist among individual industries found in agricultural value chains in South Africa
Summary
Agricultural systems have a high impact on emissions, biodiversity and ecosystem services that humans depend upon. In a period during which output is required to double, it is predicted that agriculture will struggle with the consequences of climate change, with such consequences expected to globally reduce output by 10 to 15 per cent, slumping to 50 per cent in drier African regions (Nelson et al, 2009; Mitchell et al, 2007; Chassy et al, 2006; Res et al, 2010; Volakakis et al, 2014). Agriculture globally, in developing countries, is responsible for a large percentage of employment. It is questioned whether agrifood systems are sustainable and equipped for a long-term transition that would sustainably supply the nourishment needed at the required volumes, while at the same time dealing with challenges from climate change and reducing the environmental impact of such change.
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