FINANCIAL ANALYSIS OF MANGO PRODUCTION ON SMALL-SCALE EMERGING COMMERCIAL FARMS IN THE VENDA REGION OF SOUTH AFRICA

Abstract

The mango growers of the Venda region of South Africa are small-scale emerging commercial mango producers. In a mixed cropping system, maize, beans and other vegetables are grown between the mango trees. The production of these crops is mostly for household consumption, while mangoes are grown for selling purposes. This article analyses the economic situation of the farms, by conducting a financial analysis of the cash flow of the mango production, and comparing the farm indicators of two groups of farmers. The objective is to develop strategy proposals for strengthening the mango farm business. The financial analysis shows that the average selling price farmers receive for achar mangoes is not high enough to make investments in a mango orchard profitable. From the farm analysis it can be derived that farmers should increase specialisation in mangoes by planting more trees per hectare, and introduce pruning and a more adapted input use. Other possible strategies are the increase of management knowledge, improvement of the knowledge on farm production techniques, improvement of the farm environment and a better adaptation to the macroeconomic environment.