BUYING PATTERNS FOR STAPLE FOODS AMONGST RURAL HOUSEHOLDS IN KWAZULU-NATAL INFORMAL CONSTRAINTS PERSPECTIVE IN IMPENDLE AND SWAYIMANA

Abstract

In order to better understand marketing problems faced by emerging small-scale farmers in KwaZulu-Natal (KZN), this paper assess informal constraints through purchasing patterns for staple foodstuffs amongst rural households sampled in the districts of Hlanganani (Impendle) and Umvoti (Swayimana). An earlier survey showed that most rural households in KruaZulu-Natal purchased staple foodstuffs in large towns. This study uses New Institutional Economics, and especially the transaction cost model, to examine household decisions relating to sources of purchased food. In both study areas, the results show that the vast majority of respondents engage in both personal and impersonal transactions, and that between 30 and 40 per cent of respondents still purchase staple foodstuffs from neighbours. Most sample households purchased food in towns where they operated a formal bank account. Outlets without banking facilities and supermarkets were avoided. These findings contradict the importance attached by some households in these areas to the role of informal constraints in rural household purchasing decisions.