Masters Degrees (Agricultural Economics)

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    A discrete-time survival analysis of smallholder contract farmers in Malawi
    (Stellenbosch : Stellenbosch University, 2023-04) Pretorius, Hendrik Stephanus; Greyling, Jan; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: This study investigates the durability and dynamics of smallholder participation in contract farming arrangements (CFAs) in Malawi, which are seen as a potential way to increase smallholder commercialisation and participation in modern high-value markets. The study finds that while CFA participation can offer benefits, there is considerable variation in participation durations, and high rates of smallholder exit. Factors related to productive resources and farmer performance have a large influence on the likelihood and timing of exit. Policymakers should have a realistic view of what can be expected from CFAs and consider differentiated policy responses for farmers likely to sustain participation versus those at high risk of exit. Developing farmers' capacities, particularly those factors that raise the propensity for sustained participation, should be prioritized to improve smallholder commercialisation through more durable modern-market participation. Furthermore, efforts should be made to further develop Malawi’s non-physical resources.
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    Farmer preferences for climate change adaptation policies in the Breede Valley : Western Cape
    (Stellenbosch : Stellenbosch University, 2023-03) Naude, Wilhelm Heinrich; Jooste, André; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
    AFRIKAANSE OPSOMMING: Klimaatsverandering het beduidende negatiewe impakte, insluitend toenemende omgewingstemperature, verhoogde risiko van droogtes, asook 'n verhoogde frekwensie van hittegolwe en erge vloede. Klimaatsverandering maak dit ook moeiliker om toekomstige weerpatrone te voorspel. Die wereldgemeenskap het die beduidende bedreiging wat klimaatsverandering vir alle lewe op aarde inhou besef, en het daarom die afgelope drie dekades meer aandag gegee aan beleidsaksies oor klimaatsverandering. Verskeie studies het ook tot die gevolgtrekking gekom dat klimaatsverandering ’n ernstige bedreiging vir boere in Suid-Afrika is en reeds oesverliese tot gevolg gehad het. Die primere doel van hierdie tesis was om te ondersoek watter waterverwante-beleide boere in die Sentrale Breedevallei die nuttigste ag om by klimaatsverandering aan te pas. In die studie is uitdagings geidentifiseer wat boere tans in die gesig staar om by klimaatsverandering aan te pas en voorkeure vir klimaatsaanpassings-beleidsopsies, geidentifiseer. Variasies in beleidsopsies wat boere verkies is ook verduidelik. Betrokkenheid van belanghebbendes kan 'n belangrike rol speel in suksesvolle aanpassingsopsies en beleide vir klimaatsverandering. Verskeie belanghebbendes is voor die ontwerp van die vraelys ondervra om, onder andere, verskillende beleidsmaatreels van die Nasionale Water Wet van 1998 te identifiseer, deur unieke en waardevolle insigte te verskaf. Die uitkoms van die onderhoude was vier beleidskenmerke, (i) infrastruktuur, (ii) instellings, (iii) ontginning en (iv) besoedeling. Daarbenewens is drie vlakke onder elkeen van die beleidskenmerke geidentifiseer wat vir boere nuttig kan wees om by klimaatsverandering aan te pas. Nege verskillende kombinasies van vrae met 4 vlakke elk is gegenereer om die vraelys saam te stel. Die sneeubalsteekproeftegniek is gebruik om met honderd boere in die Sentrale Breedevallei in gesprek te tree om die vraelys te voltooi. Die ‘Best-Worst Scaling’ (BWS) tegniek en 'n voorwaardelike ‘logit’-model is vir hierdie studie gebruik om boere se voorkeure vir beleidsimplementering te bepaal. Die BWS-tegniek is 'n nuwe benadering wat gebruik word om belanghebbendes se voorkeure in Suid-Afrika te vind. Die vyf sleuteluitdagings wat deur die gesprekke met belanghebbendes geïdentifiseer is, was: (i) staatsinstellings funksioneer nie behoorlik nie, (ii) oneerlike onttrekking van water, (iii) onvoldoende opvolging ten opsigte van watermeters deur die munisipaliteit, (iv) gebrek aan regeringslisensie goedkeuring vir die bou van damme, en (v) onvoldoende staatsondersteuning vir die onderhoud van infrastruktuur. Die resultate van die BWS-tegniek toon dat boere infrastruktuurverbeterings in die area beskou as die opsie met die beste potensiaal om tot meer doeltreffende waterbestuur in die area te lei, en dat verbeterings wat aan besoedeling in die gebied aangebring kan word, die minste potensiaal het om tot meer doeltreffende waterbestuur te lei. Die resultate van die voorwaardelike ‘logit’-model toon dat boere meer daarin belangstel om fisiese infrastruktuurverbeterings te sien, finansiele ondersteuningsmeganismes in waterbesparingstegnologie te bele, en hulle verkies dat die BGCMA by opruimingsaktiwiteite betrokke raak in die geval van besoedeling. Verder verkies boere die uitreiking van boetes op boere wat te veel water onttrek en op boere wat betrokke is by aktiwiteite wat moontlik tot waterbesoedeling kan lei. Laastens verkies boere ook dat die Watergebruikersverenigings (WGV's) verantwoordelik moet wees vir watertoewysing. Om waterbestuursfunksie in die Breedevallei te verbeter om te verseker dat die gebied meer bestand is teen klimaatsverandering, word vier oplossings voorgestel, naamlik: Publiek-Private Vennootskappe (PPP's) om waterinfrastruktuur in stand te hou en te ontwikkel, die ontwikkeling van meer effektiewe maniere om damlisensies toe te ken aan boere, die WGV's/Besproeiingsrade behoort by die besluitnemingsprosesse betrek te word wanneer nuwe water vir toekenning beskikbaar word, en 'n metode moet ontwikkel en geimplementeer word wat die boetestelsel meer funksioneel sal maak.
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    Assessing technical efficiency of traditional and hybrid maize farmers in Malawi
    (Stellenbosch : Stellenbosch University, 2023-03) Shakankale, Kabanga Tabo; Mungatana, Eric Dada; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY: The productivity of smallholder maize farmers in Malawi has remained relatively stagnant in recent years, despite the implementation of policies aimed at increasing production through the use of hybrid seed. This study aims to identify the factors that contribute to the productivity and efficiency of smallholder maize farmers in Malawi, with a focus on the role of hybrid seed adoption. Data from the Fifth Integrated Household Survey (IHS5) conducted in 2019-2020 was used, including information on output and input data for maize production as well as socio-economic variables. The study found that there was a significant difference in technical efficiency between hybrid and local maize seed farmers. Land, seed, and fertiliser were found to be output inelastic, suggesting that expanding the use of these inputs alone will have limited impact on increasing output. However, there was potential for increasing productivity by shifting production resources from local to hybrid maize. The inefficiency model revealed that several factors can contribute to increasing maize production efficiency in Malawi. These include addressing the gender gap in productivity by offering training and extension services specifically for female maize farmers and enhancing their access to credit and markets. Policy should also focus on supporting and encouraging younger or inexperienced farmers, as well as addressing any factors that may be contributing to a decline in technical efficiency among older farmers, such as age-related health issues, access to training and information, and limited access to markets. Overall, the study concludes that policy in Malawi should support the transition of maize farmers from local to hybrid production, such as providing access to improved seed and fertiliser, and promoting the benefits of hybrid maize production. Investments in education, infrastructure, and support services that improve market, extension, and credit access are also needed. In addition, more accurate measurement of labour input is needed to fully understand its contribution to output production. By addressing these issues, it is possible to increase the productivity and efficiency of smallholder maize farmers in Malawi, leading to increased food security and economic growth.
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    Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa
    (Stellenbosch : Stellenbosch University, 2023-03) Mkhabela, Lonhlanhla Samantha; Punt, Cecilia; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY: The aim of the study was to determine whether cooperative membership improved technical efficiency for small-scale sugarcane farmers in the Nkomazi Local Municipality, in order to test the relevance of the motivation surrounding cooperative formation. The study analysed technical efficiency of small-scale sugarcane farming in order to identify the potential increase in sugarcane output using the available inputs and to determine if cooperative membership reduces technical inefficiency, in order to improve farming activities. 100 small-scale sugarcane farmers in the Nkomazi Local Municipality were selected and telephonically interviewed with regard to the 2018/19 sugarcane production season. The Stochastic Frontier Approach (SFA) was employed for data analysis. Results indicated that technical efficiency of cooperative member farmers ranged from 19.81 % to 93.10% with the mean technical efficiency of 70.77%. For non-member farmers’ technical efficiency ranged from 14.08% to 95.76% with a mean of 69.57%. From the empirical results it was concluded that there is no statistically significant difference in mean technical efficiency between cooperative member farmers and non-member farmers in the Nkomazi Local Municipality. The results from the Cobb-Douglas stochastic frontier production model confirmed that an increased use of inputs increases sugarcane output, because the coefficients of all the explanatory variables (farm size, permanent labour and fertiliser) were positive. Only farm size and permanent labour were found to be statistically significant. The results of the inefficiency sub-model showed that only farmers’ experience had a statistically significant (at 10%) contribution in increasing technical efficiency. Results further indicated that being a member of a producer cooperative reduces technical inefficiency in sugarcane production, but the estimated coefficient was not statistically significant. Hence, one can conclude that being a member of an agricultural cooperative in the study area does not serve as a beneficial factor to increase technical efficiency. This finding is in line with the work of Ortmann and King (2007a) who argue that agricultural cooperatives serving small-scale famers in South Africa did not contribute to improving agricultural development and the economic well-being of its members. However, it contrasts with work of Jaime and Salazar (2011) who stated that participating in cooperatives improves technical efficiency. This suggests that cooperatives’ quality and ability to respond to market failures should also be taken into account. Given that the experience of small-scale sugarcane farmers was found to increase technical efficiency, the study recommends that new entrants should learn from the older farmers before the latter exit, in order for them to gain practical farming knowledge. The study further recommends that those farmers that achieved high sugarcane output as well as high technical efficiencies, can be used to demonstrate the benefit of good agricultural practices in reducing the gap between actual and potential sugarcane output. The results show that there is an opportunity to increase sugarcane output with current input use and technology. Given the result that cooperative member farmers were not found to be significantly more technically efficient compared to non-members, cooperatives in the Nkomazi Local Municipality should carefully consider how they can improve their service to their members.
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    Productivity growth in the South African soybean industry : 2001-2021
    (Stellenbosch : Stellenbosch University, 2023-03) Van der Linde, Karen; Punt, Cecilia; Kirsten, Johann; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY: In the last two decades (2001-2021), the scale of soybean production in South Africa has expanded significantly, becoming one of the country’s “biggest agricultural and agro-processing success stories” (BFAP, 2021a). Although a number of studies have commented on the successful expansion of domestic soybean production, relatively few studies have focused on, or aimed to quantify, the extent and drivers of this growth, as well as the degree to which productivity growth encouraged further expansion of the industry. As a result, this study aimed to gain a better understanding of the relationship between productivity and production growth, as well as the drivers of said growth, by measuring and analysing productivity growth in the domestic soybean industry between 2001-2021. Using secondary data obtained from, amongst others, Grain SA, the Protein Research Foundation (PRF) and the Abstract of Agricultural Statistics, the study employed a combination of quantitative and qualitative analysis to test the following three hypotheses. Firstly, it is expected that the domestic soybean sector experienced productivity growth throughout the period under review largely due to technical progress. Secondly, a positive relationship exists between productivity growth in one season, and the expansion of the total area planted to soybeans in the next season. Thirdly, growth in the domestic soybean sector were driven by factors such as the commercialisation and use of genetically modified cultivars, increased awareness of the benefits of planting soybeans in rotation with maize, and the investment in the country’s crushing capacity. The constructed total factor productivity (TFP) index indicates that, on average, TFP increased with roughly 16% between 2001-2021, suggesting that technological progress played a role in the successful expansion of the domestic soybean industry. This progress most likely encompasses factors such as research and development, the implementation of improved farming methods (such as no to minimum tilling practices and crop rotation systems), and the adoption of improved varietals and GMO cultivars. The study also found seasonal rainfall to be an important determinant of productivity and production growth; and that, in the short-run, no real statistically significant relationship existed between productivity growth and area expansion. In terms of the determinants of TFP growth, the regression analysis found that the use of pesticides and herbicides, labour, and rainfall had a positive impact on TFP; whereas seed, fuel, crop insurance, and other costs had a negative impact. Furthermore, the hypothesis regarding the specific drivers of growth, was to an extent, confirmed by the qualitative analysis.