- Title
- Enhancing productivity and market participation for poverty reduction and shared prosperity in South Africa
- Creator
- Avuletey, Richard
- Subject
- Poverty -- South Africa Economic development -- South Africa
- Date Issued
- 2017
- Date
- 2017
- Type
- Thesis
- Type
- Doctoral
- Type
- PhD
- Identifier
- http://hdl.handle.net/10353/13978
- Identifier
- vital:39736
- Description
- There have been several attempts by the South Africa government to improve the agricultural productivity on smallholder farms since the end of apartheid. In spite of the government support, agricultural productivity has stagnated for several years across the Eastern Cape rural communities including Mthatha and Qamata. The aim of this study was to understand the roles played by irrigation adoption and market participation in addressing poverty reduction and shared prosperity levels of smallholder farmers in Eastern Cape of South Africa. Data were collected using purposive and random sampling approach through the use of the snowball method. To collect data, a questionnaire was designed and administered through face-to-face interviews. Overall, 200 farmers were interviewed both at Mthatha and Qamata irrigation scheme to represent the farmers in the area. The collected data were analysed using both parametric and non-parametric methods. The non-parametric methods used include descriptive analysis, estimation of gross margins as a proxy for profitability. The Stochastic Frontier Analysis (SFA), Binomial Logistic Regression (BLR), Ordinary Least Squares (OLS), tobit censored regression and propensity score matching (PSM) were the parametric methods used in the study. Profit efficiency was measured using the normalized transcendent logarithmic profit frontier approach (Cobb-douglas). Stochastic Production Frontier (SPF) technique was used to determine the technical efficiency of individual farmers and to identify the major factors that influence technical efficiency. Binomial logistic regression was used to determine factors affecting irrigation adoption and market participation among smallholder farmers. OLS was used to estimate the impact of institutional characteristics, socio-economic and agronomic factors on smallholder farmers’ level of market participation for selected crop enterprises. Lastly, tobit regression and propensity score matching (PSM) analyses were used to estimate the impact of irrigation technology adoption on poverty reduction in the province. The results of the descriptive statistics of the overall sample revealed an average age of 61 years, and mean household size of 4.6 persons with majority of the household head having at least obtained some primary school education (59.5percent). Most of the household heads interviewed were men (68.5percent). Most farmers are single (65percent) with regard to their marital status. Farming is viewed as major source of livelihood for smallholders with an average income of R12523.37 for overall sample and income of R15559.80 and R5795.59 per crop season, respectively, for irrigators and non irrigators. Smallholder irrigators generated a higher gross margin of R7585.26, R21966.89 and R6266.07 from maize, cabbage and potato enterprises, respectively, compared to their non irrigator counterparts in maize (R131.39), cabbage (R10938.04) and potato (R3433.31) enterprises. The results of the frontier profit model revealed mean profit efficiency of 90percent, 99.99percent and 99.99percent, respectively, for maize, cabbage and potato.The binary logistic regression model for irrigation adoption indicated that years in school, cooperative membership, off-farm income, credit access and distance to market significantly explain smallholder farmers’ irrigation adoption decision. On the other hand, age of household head, market support, farm size, livestock income and distance to market were the key variables that accounted for smallholder farmers’ market participation adoption behaviour. The findings from the stochastic production frontier (SPF) indicate that smallholder farmers are technically efficient in maize and cabbage enterprises both at 99.99percent. Lastly, the findings from the Tobit regression and propensity score matching are consistent across the two methods, suggesting that being a member of irrigation adoption has a positive significant impact on income of smallholder farmers. Irrigation and market participation appear to have a significant and positive impact on smallholder poverty reduction (measured by crop income) for those farmers engaged in them. The findings from this study provide useful practical insights for policy makers, farm advisers and researchers in the design of effective and efficient policies, programmes and projects which can affect the adoption of irrigation technology and market participation.
- Format
- 388 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Science and Agriculture
- Language
- English
- Rights
- University of Fort Hare
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UFH Department of Agricultural Economics and Extension
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