Sustainability of smallholder cattle production and its vertical integration into the formal beef market value chain in South Africa

Marandure, Tawanda (2015-12)

Thesis (MSc)--Stellenbosch University, 2015.

Thesis

ENGLISH ABSTRACT: A survey to assess the sustainability and marketing opportunities for smallholder cattle production systems was conducted by consulting with a total of 95 smallholder cattle producers in Ncorha and Gxwalibomvu communities in the Eastern Cape Province (ECP) of South Africa. In addition, a total of 18 surrounding beef retailers, 5 abattoirs that supplied beef to these retailers and 155 beef consumers who bought beef from these retailers between February 2013 and February 2014 were also interviewed using pretested structured questionnaires. The surveys established the perception of beef traders and consumers on the development of a Natural beef (NB) brand and indicated the willingness of participants to support the development of a NB brand. The results indicated that a smallholder beef cattle production system was socially and environmentally conditionally sustainable but economically not sustainable. Overall, the system was conditionally sustainable. Cattle herd size was bigger in Ncorha than in Gxwalibomvu (13.7±1.9 vs. 11.3 ± 1.9 heads of cattle, respectively). Smallholder producers from both sites sold an average of two cattle per year. Young farmers (<40 years old), Christians and small households (<5 members) had a greater potential to sell cattle than adults (>40 years old), traditionalists and larger households (>5 members). Similarly, households with access to extension services, owners of smaller cattle herds (<10 cattle) and from a lower income bracket (<R3000) had a bigger potential to sell cattle. More than 70% of consumers were willing to buy a NB brand once it is available on the market but were not willing to pay a premium for the beef brand. Consumers’ willingness to buy and pay a premium for a NB product was influenced by gender, age, income source, with meat preference and meat consumption frequency playing the biggest role in decision making. On the other hand, retailers were not willing to participate in the development of a NB brand. Beef traders, however, suggested that communal feedlotting, group marketing and characterization of beef from cattle fed natural pasture-based diets to identify unique quality attributes of such beef, can potentially improve offtake and economic sustainability of smallholder cattle production systems. The study concluded that smallholder cattle production systems in the ECP is conditionally sustainable, and opportunities for the integration of smallholder cattle producers into the formal beef market value chain lies in the characterization of natural pasture-fed beef, feedlotting and group marketing.

AFRIKAANSE OPSOMMING:'n Opname om die volhoubaarheid en bemarkingsgeleenthede vir kleinboer vleisbeesproduksiestelsels te evalueer, is deur middel van konsultasie met 'n totaal van 95 kleinboere vee produsente in Ncorha en Gxwalibomvu gemeenskappe in die Oos-Kaap Provinsie van Suid-Afrika, uitgevoer. Daarbenewens is altesame 18 omliggende vleis kleinhandelaars, 5 abattoirs wat beesvleis verskaf aan hierdie kleinhandelaars en 155 beesvleis verbruikers wat vleis gekoop het van die kleinhandelaars tussen Februarie 2013 en Februarie 2014, met behulp van vooraf-getoetste gestruktureerde vraelyste ondervra. Die opnames het die mening van beesvleis handelaars en -verbruikers oor die ontwikkeling van 'n natuurlike weiding-geproduseerde beesvleis (NPB) handelsmerk ingewin en ook die bereidwilligheid van die deelnemers om die ontwikkeling van 'n NPB handelsmerk te ondersteun, aangedui. Die bevindinge dui daarop dat 'n kleinskaalse vleisbees produksiestelsel sosiaal en omgewingsvriendelik voorwaardelik volhoubaar is, maar nie ekonomies volhoubaar is nie. In geheel is hierdie tipe produksiestelsel as voorwaardelik volhoubaar beskou. Beestrop grootte was groter in die Ncorha as in die Gxwalibomvu gemeenskappe (13.7 ± 1.9 beeste vs. 11.3 ± 1.9 beeste, onderskeidelik). Kleinboer produsente van beide areas het 'n gemiddeld van twee beeste per jaar verkoop. Jong boere (<40 jaar oud), Christene en klein huishoudings (<5 lede) het 'n beter potensiaal gehad om beeste te verkoop as volwassenes (> 40 jaar oud), tradisionele boere en groter huishoudings (> 5 lede). Net so het huishoudings met toegang tot voorligtingsdienste, eienaars van klein troppe (<10 beeste) en boere wat aan die laer inkomstegroep behoort het (<R3000), ʼn groter potensiaal gehad om vee te verkoop. Meer as 70% van verbruikers was bereid om vir 'n NPB produk te betaal sodra dit beskikbaar is op die mark, maar was nie bereid om 'n premie vir die NPB handelsmerk te betaal nie. Verbruikers se bereidwilligheid om NPB produkte te koop en ʼn premie te betaal vir die handelsmerk was deels beïnvloed deur geslag, ouderdom, bron van inkomste en die meeste deur vleis voorkeur en frekwensie van vleis verbruik. Kleinhandelaars was nie bereid om deel te neem aan die ontwikkeling van ʼn NPB handelsmerk nie. Bees handelaars het egter voorgestel dat kommunale voerkrale, groepsbemarking en karakterisering van vleis van beeste gevoer op natuurlike weiding om die unieke kwaliteitseienskappe van die tipe vleis vas te stel, potensieel afsette en ekonomiese volhoubaarheid van kleinboere produksie beeste stelsels kan verbeter. Die studie het bevind dat kleinboer veeproduksiestelsels in die Oos-Kaap Provinsie voorwaardelik volhoubaar is en dat geleenthede vir die integrasie van kleinboer beesprodusente in die formele vleisbeesmark waardeketting in die karakterisering van beesvleis geproduseer op natuurlike weiding, voerkrale en groepsbemarking, vervat is.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/97974
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