A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa
Date
2021-06-24
Journal Title
Journal ISSN
Volume Title
Publisher
Public Library of Science
Abstract
Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializing smallholder livestock producers. The Limpopo Industrial Development Corporation (IDC) Nguni Cattle Development Project is an example of such effort. The economic performance of these efforts needs to be evaluated. We use gross margin analysis to evaluate the performance of the Limpopo IDC Nguni Cattle Development Project. Additionally, we use regression analysis to identify factors influencing gross margins. Our results indicate that although smallholders show potential to commercialize, they lack commercial farming experience and require that a strong extension support system be used as one of the strategies to improve profitability. We also noted that individual farmers were more profitable than group farmers. Multiple regression analysis shows that three variables could be used to stimulate gross margin among the Limpopo IDC Nguni Cattle Development Project farmers. These are herd size, distance to market and farm size. Since farm size is a given, policy should focus on assisting farmers to build their herds and to have better access to markets.
Description
CITATION: Nkadimeng, M. V. et al. 2021. A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. PLoS ONE, 16(6):e0253657, doi:10.1371/journal.pone.0253657.
The original publication is available at https://journals.plos.org
The original publication is available at https://journals.plos.org
Keywords
Nguni cattle -- South Africa -- Limpopo Province, Beef cattle breeds -- South Africa -- Limpopo Province, Animal industry -- South Africa -- Limpopo Province, Nguni cattle farmers
Citation
Nkadimeng, M. V. et al. 2021. A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. PLoS ONE, 16(6):e0253657, doi:10.1371/journal.pone.0253657.