Abstract
The 48 organic-certified members of the Ezemvelo Farmers’ Organisation in KwaZulu-Natal were surveyed during October-November 2004 to assess what factors they perceive constrain the competitiveness of a formal supply chain that markets their amadumbe, potatoes and sweet potatoes. They identified uncertain climate, tractor not available when needed, delays in payments for crops sent to the pack-house, lack of cash and credit to finance inputs, and more work than the family can handle as the current top five constraints. Principal Component Analysis further identified three valid institutional dimensions of perceived constraints and two valid farm-level dimensions. Potential solutions to better manage these constraints are discussed, including the need for the farmers to renegotiate the terms of their incomplete business contract with the pack-house agent.
Highlights
Policymakers in the province of KwaZulu-Natal (KZN), South Africa (SA) face considerable economic development challenges
During October-November 2004 a census survey was used to personally interview the 48 members of the Ezemvelo Farmers’ Organisation (EFO) that were organiccertified. They were each asked to give their perceptions of the main constraints that limit the competitiveness of the formal organic crop supply chain by ranking the 20 potential agro-ecological, socioeconomic, institutional and farm-level constraints listed in Appendix 1 on Likert-type scales from 1 to 3
Average annual farm income was R988 per household, and the range from R89 to R5194 indicates that most farm areas were below the mean of 0.65 hectares
Summary
Policymakers in the province of KwaZulu-Natal (KZN), South Africa (SA) face considerable economic development challenges. Promoting the agricultural growth of smallholder farmers like those living in rural KZN can reduce poverty by creating employment and raising household incomes (Delgado, 1999). This is likely to require that smallholder farmers must increasingly vertically integrate into existing and new supply chains for commercial cash or value-added products rather than staple commodities (Deutsche Gesellschaft fur Technische Zusammenarbeit (DGTZ), 2002). Research on the key constraints faced by smallholder farmers when they access these markets will help policymakers and the private sector in SA to identify how to build more sustainable links between smallholders and current and new organic crop supply chains. To the best of the authors’ knowledge, this is the first published study in SA of smallholder farmers’ perceptions of factors that limit the competitiveness of a formal organic crop supply chain
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