Analysis of the challenges and opportunities for smallholder farmer value chain integration in the Western Cape : a public and private sector organisation perspective

Shange, Nikiwe (2014-12)

Thesis (MBA)--Stellenbosch University, 2014.


Access to markets is an essential requirement for smallholder farmer development. The limited access to formal value chains for smallholder farmers in South Africa is a key challenge that is facing both public and private value chain actors. Despite the substantial investments by government, the performance of smallholder farmers in South Africa remains poor. Several studies have been done to understand the key challenges facing smallholder farmer value chain integration. This study takes a unique view by understanding the challenges and opportunities facing farmer integration from a public and private stakeholder perspective, specifically analysing the Western Cape. The study showed that the most influential constraints for smallholder farmer value chain integration are access to informal and formal markets, resources and infrastructure, and the functioning of local institutions. The study also showed that the key opportunities to improve value chain integrations are in improving the non-financial and financial support provided to smallholder farmers. The results of the study are in line with the value chain theory around integration of smaller producers.

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