- Title
- Profitability and technical efficiency of small-scale organic crop farmers’ in the Eastern Cape Province of South Africa
- Creator
- Eyinade, Gabriel A https://orcid.org/0000-0001-8851-7255
- Subject
- Organic farming
- Subject
- Farms, Small
- Date Issued
- 2019-08
- Date
- 2019-08
- Type
- Doctoral theses
- Type
- text
- Identifier
- http://hdl.handle.net/10353/23633
- Identifier
- vital:58229
- Description
- Organic farming is growing gradually in South Africa. Its contribution to economic growth and poverty mitigation is notably in the pastoral areas in terms of providing adequate and affordable food for the incessantly growing population. Organic farming is also known for provision of employment and source of livelihoods for the rural populace as well as supply of raw materials to the country’s agro-allied industrial sector. For the purposes of this research, focus was only on profitability and technical efficiency because it is an essential subject in developing agriculture where resources are limited, but high population growth is very common. As a result, increased output will rely more on efficiency enhancements which will further intensify farmers’ income. As such, evaluating the extent for such efficiency enhancements within the system is a crucial prerequisite. The objective of the study was to assess the profitability and technical efficiency; and to identify socio-economic, institutional and farm characteristics that influence profitability and the technical efficiency of the small-scale organic crop farmers in the Buffalo City Metropolitan Municipality (BCMM). A purposive sampling technique was used to collect primary data from 160 small-scale organic crop farmers in BCMM. The gross margin estimation was used to estimate profitability, while multivariate Ordinary Least Square (OLS) was used to assess socio-demographic factors influencing profitability. The stochastic frontier model was used to determine the level of technical efficiency as well as the determinants of technical inefficiency of the farmers. The results of the gross margin estimation show that the small-scale organic maize (GM= R392 417.00) and cabbage (R196 489.00) farms were profitable. Similarly, the results of the OLS showed that one out of the eight variables namely, farming experience influences organic maize producers’ profitability, while factors such as gender, household size, and educational level emerged as the major significant factors influencing organic cabbage producers’ profitability. The stochastic results revealed that small-scale organic crop farmers in the study area are technically efficient at 86percent in maize production and 93percent in cabbage production respectively; and experienced unity return to scale (1.0) in maize and increasing return to scale (1.2) in cabbage. The results suggested that an increase in the use of input, would also intensify their productivity and efficiency. The results from the inefficiecncy model of the stochastic frontier further show that age and farming experience are the major determinants of organic maize producers’ technical inefficiency, while, factors such as age, years of schooling, farming experience, and household size were the significant determinants of organic cabbage producers’ technical inefficiency. To enhance the farming potential of these farmers, it is recommended that government and other several stakeholders such as researchers, entrepreneurs should invest more in organic crop farms since it is profitable and efficient in improving farmers’ livelihoods. There is also need for government to organise on-going workshops and extension training through the help of extension officers on how farmers can improve their production which will further enhance their income.
- Description
- Thesis (PhD) -- Faculty of Science and Agriculture, 2019
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (143 leaves)
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Science and Agriculture
- Language
- English
- Rights
- University of Fort Hare
- Rights
- All Rights Reserved
- Rights
- Open Access
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UFH Department of Agricultural Economics and Extension
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Gabriel A Eyinade -Assessed...pdf | 2 MB | Adobe Acrobat PDF | View Details Download |