FACTORS INFLUENCING VALUE-ADDITION AGRICULTURAL CHOICE WITHIN SMALLHOLDER FARMING AGRIBUSINESSES OF GAUTENG PROVINCE IN SOUTH AFRICA
Abstract
This paper investigated factors influencing value addition agricultural choices of smallholder farming agribusinesses in the Gauteng Province, South Africa, using the Ordinary Least Squares regression model. The study used randomly sampled data collected from 102 smallholder farmers by the National Agricultural Marketing Council and the Gauteng Department of Agriculture and Rural Development. Four types of value addition were identified, namely postharvest, food preservation, milling, and post-slaughter. The results revealed that the number of people in the household, permanent workers, and access to training influences smallholder farmers’ choice of post-harvest, food preservation, and post-slaughter value addition. Besides, milling value addition is influenced by the size of the farm, grain, and livestock production, together with access to information and training. These results call for government intervention in promoting agro-processing and value addition activities to encourage farmer participation, income generation, and poverty alleviation, thus improving the farmers’ livelihoods.
Keywords
agro-processing; ordinary least squares; small holder farmers; value addition; Gauteng
References
Abdulai, A., Huffman, W. (2014). The adoption and impact of soil and water conservation technology: An endogenous switching regression application. Land Econ., 90(1), 26–43.
Abend, G. (2018). The limits of decision and choice. Theo. Soc., 47, 805–841.
ACET (African Centre for Economic Transformation). (2017). Agriculture, powering Africa’s economic transformation. African Transformation Report 2017, Ghana.
Adzitey, F., Sulleyman, K.W., Mensah, S.S. (2018). Knowledge and practices of meat safety by meat sellers in the Kumasi Metropolis of Ghana. J. Food Sci. Technol., 7(2), 34–41.
Akudugu, M.A., Guo, E., Dadzie, S.K. (2012). Adoption of modern agricultural production technologies by farm households in Ghana: What factors influence their decisions? J. Biol. Agric. Health., 2(3), 1–13.
Amsalu, A., De Jan, G. (2007). Determinants of adoption and continued use of stone terraces for soil and water conservation in an Ethiopian highland watershed. Ecol. Econ., 61, 294–302
Beyene, H.G. (2014). Socio-economic factors as causes and remedies for conflict of the San community in Platfontein. J. Transdiscip. Res. South Afr., 10(4), 99–119.
Bisht, I.S., Rana, J.C., Ahlawat, S.P. (2020). The future of smallholder farming in India: Some sustainability considerations. Sustainability, 12, 3751.
Chappelow, J. (2018). Variance inflation factor definition. Investopedia. https://www.investopedia.com/terms/v/variance-inflation-factor.asp
Croppenstedt, A., Demeke, M., Meschi, M.M. (2003). Technology adoption in the presence of constraints: The case of fertilizer demand in Ethiopia. Rev. Dev. Econ., 7(1), 58–70.
DAFF (Department of Agriculture, Forestry and Fisheries). (2008). Evaluation of agricultural education and training curricula in South Africa. DAFF Report, South Africa.
Dube, S.C., das Nair, R., Nkhonjera, M., Tempia, N. (2018). Structural transformation in agriculture and agro-processing value chains. Centre for Competition, Regulation and Economic Development, Working paper 8. University of Johannesburg, South Africa.
Ememwa, L., Nungo, R.A., Obiero, H.M., Ndolo, P.J. (2008). Challenges and Experiences in Transfer of post-harvest Technologies to Farming Communities in western Kenya: A case of cassava and sweet potato processing. In Biennial scientific conference and 3rd agricultural forum, 10th-13th November.
Etwire, P.M., Dogbe, W., Wiredu, A.N., Marty, E., Etwire, E., Owusu, R.K., Wahaga, E. (2013). Factors influencing farmer’s participation in agricultural projects: The case of agricultural value chain mentorship project in the Northern Region of Ghana. J. Econ. Sust. Dev., 10(4), 36–43.
Evans, E. (2006). Value added agriculture: is it right for me? Gainesville: Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida.
FAO (Food and Agriculture Organization of the United Nations). (2015). The economic lives of smallholder farmers: An analysis based on household data from nine countries. Rome.
FAO (Food and Agriculture Organization of the United Nations). (2017). The future of food and agriculture: Trends and challenges. Rome.
Holton, R. (2006). The art of choice. Philos. Imp., 6(3), 1–15.
Hutcheson, G.D. (2011). Categorical Explanatory variables. J. Model. Manag., 6(2), 225–236.
ITACSA (International Trade Administration Commission of South Africa). (2016). Agro-processing markets and related trade trends: Opportunities and challenges for South Africa. Report.
Jayne, T.S., Chamberlin, J., Headey, D.D. (2014). Land pressures, the evolution of farming systems, and development strategies in Africa: A synthesis. Food Polic., 48, 1–17.
Kaguongo, W.P., Nganga, N.M., Muthoka, N., Muthami, F., Maingi, G. (2010). Seed potato subsector master plan for Kenya (2009–2014). Seed potato study sponsored by GTZ-PSDA, USAID, CIP and Government of Kenya. Ministry of Agriculture, Kenya.
Khoza, T.M., Senyolo, G.M., Mmbengwa, V.M., Soundy, P. (2019). Socio-economic factors influencing smallholder farmers’ decision to participate in agro-processing industry in Gauteng Province, South Africa. Cogent Soc. Sci., 5(1), 1664193.
Kruska, R.L., Reid, R.S., Thornton, P.K., Henninger, N., Kristjanson, P.M. (2003). Mapping livestock-oriented agricultural production systems for the developing world. Agric. Syst., 77, 39–63.
Liebenberg, F. (2013). South African agricultural production, productivity and research performance in the 20th century. University of Pretoria, South Africa.
MacDonald, R., Reitmeier, C. (2017). Understanding Food Systems: In agriculture, food science and nutrition in the United States (1st ed., pp. 179–225).
Mahaboob, B., Venateswarlu, B., Narayana, C., Ravisanker, J., Balasiddamuni, P. (2018). A treatise on ordinary least squares estimation of parameters of linear model. Int. J. Eng. Technol., 7(10), 518–522.
Mapiye, C., Chimonyo, M., Muchenje, V., Dzama, K., Marufu, M.C., Raats, J.G. (2007). Potential for value-addition of Nguni cattle products in the communal areas of South Africa: A review. Afr. J. Agric. Res., 2(10), 488–495.
Mariano, M.J., Renato, V., Euan, F. (2012). Factors influencing farmers’ adoption of modern rice technologies and good management practices in the Philippines. Agric. Syst., 110(C), 41–53.
Mbugua, F. (2011). An analysis of factors influencing adoption of the recommended maize technology’s package in Makuyu Division, Murang’a South District, Kenya. Doctoral dissertation. Kenya: Kenyatta University.
McElwee, G., Bosworth, G. (2010). Exploring the strategic skills of farmers across a typology of farm diversification approaches. J. Farm Manag., 13(12), 819–838.
Melembe, T., Senyolo, G.M., Mmbengwa, V.M. (2020). Patterns of smallholder farmers’ choice of value addition in Gauteng Province, South Africa. J. Human Ecol., 70, 9–14.
Mmbengwa, V.M., Khoza, T.M., Rambau, K., Rakuambo, J. (2018). Assessment of the participation of smallholder farmers in agro-processing industries of Gauteng Province. Int. J. Sust. Dev., 11(20), 12–18.
Mukarumbwa, P. (2017). Determinants of smallholder vegetable farmers’ participation on post-harvest practices and market access: evidence from Mashonaland East Province of Zimbabwe. Doctoral dissertation. University of Fort Hare, South Africa
Ngombe, J., Kalinda, T., Tembo, G., Kuntashula. E. (2014). Econometric analysis of the factors that affect adoption of conservation farming practices by smallholder farmers in Zambia. J. Sust. Dev., 7(4): 124–139.
Ngore, P.M. (2010). Evaluation of factors influencing value addition by butchery agribusiness in Igembe North District, Kenya. Master Dissertation. Egerton University, Kenya.
Nhundu, N., Paelo, A., Thosago, M., Vilakazi, T. (2017). Growth and strategies of large and leading firms – Food production and processing sector assessment. Centre for Competition, Regulation and Economic Development. Working Paper 10. University of Johannesburg, South Africa.
OECD (Organization for Economic Co-operation and Development). (2018). The future of education and skills, Education 2030. Position Paper.
Paremoer, T. (2018). Regional value chains: exploring linkages and opportunities in the agroprocessing sector across five SADC countries. CCRED Working Paper No. 4.
Parsons, P. (2018). Smart choices in agriculture. Cornhus. Econ., 402, 472–1911.
Queirós, A., Faria, D., Almeida, F. (2017). Strengths and limitations of qualitative and quantitative research methods. Eur. J. Educ. Stud., 3(9), 369–386.
Rahman, M.S. (2020). The advantages and disadvantages of using qualitative and quantitative approaches and methods in language “testing and assessment” research: A literature review. J. Edu. Learn., 6(1), 102–112.
Roy, R., Shivamurthy, M., Radhakrshna, R.B. (2013). Impact of value addition training on participants of farmers’ training institutes. World Appl. Sci. J., 22(10), 1401–1411.
Schouten, G., Vellema, S. (2019). Partnering for inclusive business in food provisioning. Curr. Opin. Env. Sust., 41, 38–42.
Tadesse, B., Bakala, F., Mariam, L.W. (2018). Assessment of post-harvest loss along potato value chain: the case of Sheka zone, South West Ethiopia. Agric. Food Sec., 7(1), 18.
Thindisa, L.M.V. (2014). Participation by smallholder farming entrepreneurs in agro-processing activities in South Africa. Masters Dissertation. University of Witwatersrand, South Africa.
Tura, M., Aredo, D., Tsegaye, W., Rovere, R., Kassie, G., Mwangi, W., Mwabu, G. (2010). Adoption and continued use of improved maize seeds: Case study of Central Ethiopia. Afr. J. Agric. Res., 5(17), 2350–2358.
USDA (United States Department of Agriculture). (2010). A national information resource for value added agriculture. USDA Report, United States of America.
Wangu, J., Mangnus, E., van Westen, A.C.M. (2020). Limitations of inclusive agribusiness in contributing to food and nutrition security in a smallholder community. A case of mango initiative in Makueni County, Kenya. Sustainability, 12(14), 1–23.
Werquin, P. (2010). Recognition of non-formal and informal learning: Country practices. Organization for Economic Co-operation and Development Report.
Wildman, M.L., Torres, R.M. (2002). Factors influencing choice of major in agriculture. North Am. Coll. Teach. Agric., 46(3), 4–9.
Zalk, N. (2017). Multi-year expert meeting on enhancing economic environment at all levels in support of inclusive and sustainable development, and the promotion of economic integration and cooperation. Departmen
Abend, G. (2018). The limits of decision and choice. Theo. Soc., 47, 805–841.
ACET (African Centre for Economic Transformation). (2017). Agriculture, powering Africa’s economic transformation. African Transformation Report 2017, Ghana.
Adzitey, F., Sulleyman, K.W., Mensah, S.S. (2018). Knowledge and practices of meat safety by meat sellers in the Kumasi Metropolis of Ghana. J. Food Sci. Technol., 7(2), 34–41.
Akudugu, M.A., Guo, E., Dadzie, S.K. (2012). Adoption of modern agricultural production technologies by farm households in Ghana: What factors influence their decisions? J. Biol. Agric. Health., 2(3), 1–13.
Amsalu, A., De Jan, G. (2007). Determinants of adoption and continued use of stone terraces for soil and water conservation in an Ethiopian highland watershed. Ecol. Econ., 61, 294–302
Beyene, H.G. (2014). Socio-economic factors as causes and remedies for conflict of the San community in Platfontein. J. Transdiscip. Res. South Afr., 10(4), 99–119.
Bisht, I.S., Rana, J.C., Ahlawat, S.P. (2020). The future of smallholder farming in India: Some sustainability considerations. Sustainability, 12, 3751.
Chappelow, J. (2018). Variance inflation factor definition. Investopedia. https://www.investopedia.com/terms/v/variance-inflation-factor.asp
Croppenstedt, A., Demeke, M., Meschi, M.M. (2003). Technology adoption in the presence of constraints: The case of fertilizer demand in Ethiopia. Rev. Dev. Econ., 7(1), 58–70.
DAFF (Department of Agriculture, Forestry and Fisheries). (2008). Evaluation of agricultural education and training curricula in South Africa. DAFF Report, South Africa.
Dube, S.C., das Nair, R., Nkhonjera, M., Tempia, N. (2018). Structural transformation in agriculture and agro-processing value chains. Centre for Competition, Regulation and Economic Development, Working paper 8. University of Johannesburg, South Africa.
Ememwa, L., Nungo, R.A., Obiero, H.M., Ndolo, P.J. (2008). Challenges and Experiences in Transfer of post-harvest Technologies to Farming Communities in western Kenya: A case of cassava and sweet potato processing. In Biennial scientific conference and 3rd agricultural forum, 10th-13th November.
Etwire, P.M., Dogbe, W., Wiredu, A.N., Marty, E., Etwire, E., Owusu, R.K., Wahaga, E. (2013). Factors influencing farmer’s participation in agricultural projects: The case of agricultural value chain mentorship project in the Northern Region of Ghana. J. Econ. Sust. Dev., 10(4), 36–43.
Evans, E. (2006). Value added agriculture: is it right for me? Gainesville: Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida.
FAO (Food and Agriculture Organization of the United Nations). (2015). The economic lives of smallholder farmers: An analysis based on household data from nine countries. Rome.
FAO (Food and Agriculture Organization of the United Nations). (2017). The future of food and agriculture: Trends and challenges. Rome.
Holton, R. (2006). The art of choice. Philos. Imp., 6(3), 1–15.
Hutcheson, G.D. (2011). Categorical Explanatory variables. J. Model. Manag., 6(2), 225–236.
ITACSA (International Trade Administration Commission of South Africa). (2016). Agro-processing markets and related trade trends: Opportunities and challenges for South Africa. Report.
Jayne, T.S., Chamberlin, J., Headey, D.D. (2014). Land pressures, the evolution of farming systems, and development strategies in Africa: A synthesis. Food Polic., 48, 1–17.
Kaguongo, W.P., Nganga, N.M., Muthoka, N., Muthami, F., Maingi, G. (2010). Seed potato subsector master plan for Kenya (2009–2014). Seed potato study sponsored by GTZ-PSDA, USAID, CIP and Government of Kenya. Ministry of Agriculture, Kenya.
Khoza, T.M., Senyolo, G.M., Mmbengwa, V.M., Soundy, P. (2019). Socio-economic factors influencing smallholder farmers’ decision to participate in agro-processing industry in Gauteng Province, South Africa. Cogent Soc. Sci., 5(1), 1664193.
Kruska, R.L., Reid, R.S., Thornton, P.K., Henninger, N., Kristjanson, P.M. (2003). Mapping livestock-oriented agricultural production systems for the developing world. Agric. Syst., 77, 39–63.
Liebenberg, F. (2013). South African agricultural production, productivity and research performance in the 20th century. University of Pretoria, South Africa.
MacDonald, R., Reitmeier, C. (2017). Understanding Food Systems: In agriculture, food science and nutrition in the United States (1st ed., pp. 179–225).
Mahaboob, B., Venateswarlu, B., Narayana, C., Ravisanker, J., Balasiddamuni, P. (2018). A treatise on ordinary least squares estimation of parameters of linear model. Int. J. Eng. Technol., 7(10), 518–522.
Mapiye, C., Chimonyo, M., Muchenje, V., Dzama, K., Marufu, M.C., Raats, J.G. (2007). Potential for value-addition of Nguni cattle products in the communal areas of South Africa: A review. Afr. J. Agric. Res., 2(10), 488–495.
Mariano, M.J., Renato, V., Euan, F. (2012). Factors influencing farmers’ adoption of modern rice technologies and good management practices in the Philippines. Agric. Syst., 110(C), 41–53.
Mbugua, F. (2011). An analysis of factors influencing adoption of the recommended maize technology’s package in Makuyu Division, Murang’a South District, Kenya. Doctoral dissertation. Kenya: Kenyatta University.
McElwee, G., Bosworth, G. (2010). Exploring the strategic skills of farmers across a typology of farm diversification approaches. J. Farm Manag., 13(12), 819–838.
Melembe, T., Senyolo, G.M., Mmbengwa, V.M. (2020). Patterns of smallholder farmers’ choice of value addition in Gauteng Province, South Africa. J. Human Ecol., 70, 9–14.
Mmbengwa, V.M., Khoza, T.M., Rambau, K., Rakuambo, J. (2018). Assessment of the participation of smallholder farmers in agro-processing industries of Gauteng Province. Int. J. Sust. Dev., 11(20), 12–18.
Mukarumbwa, P. (2017). Determinants of smallholder vegetable farmers’ participation on post-harvest practices and market access: evidence from Mashonaland East Province of Zimbabwe. Doctoral dissertation. University of Fort Hare, South Africa
Ngombe, J., Kalinda, T., Tembo, G., Kuntashula. E. (2014). Econometric analysis of the factors that affect adoption of conservation farming practices by smallholder farmers in Zambia. J. Sust. Dev., 7(4): 124–139.
Ngore, P.M. (2010). Evaluation of factors influencing value addition by butchery agribusiness in Igembe North District, Kenya. Master Dissertation. Egerton University, Kenya.
Nhundu, N., Paelo, A., Thosago, M., Vilakazi, T. (2017). Growth and strategies of large and leading firms – Food production and processing sector assessment. Centre for Competition, Regulation and Economic Development. Working Paper 10. University of Johannesburg, South Africa.
OECD (Organization for Economic Co-operation and Development). (2018). The future of education and skills, Education 2030. Position Paper.
Paremoer, T. (2018). Regional value chains: exploring linkages and opportunities in the agroprocessing sector across five SADC countries. CCRED Working Paper No. 4.
Parsons, P. (2018). Smart choices in agriculture. Cornhus. Econ., 402, 472–1911.
Queirós, A., Faria, D., Almeida, F. (2017). Strengths and limitations of qualitative and quantitative research methods. Eur. J. Educ. Stud., 3(9), 369–386.
Rahman, M.S. (2020). The advantages and disadvantages of using qualitative and quantitative approaches and methods in language “testing and assessment” research: A literature review. J. Edu. Learn., 6(1), 102–112.
Roy, R., Shivamurthy, M., Radhakrshna, R.B. (2013). Impact of value addition training on participants of farmers’ training institutes. World Appl. Sci. J., 22(10), 1401–1411.
Schouten, G., Vellema, S. (2019). Partnering for inclusive business in food provisioning. Curr. Opin. Env. Sust., 41, 38–42.
Tadesse, B., Bakala, F., Mariam, L.W. (2018). Assessment of post-harvest loss along potato value chain: the case of Sheka zone, South West Ethiopia. Agric. Food Sec., 7(1), 18.
Thindisa, L.M.V. (2014). Participation by smallholder farming entrepreneurs in agro-processing activities in South Africa. Masters Dissertation. University of Witwatersrand, South Africa.
Tura, M., Aredo, D., Tsegaye, W., Rovere, R., Kassie, G., Mwangi, W., Mwabu, G. (2010). Adoption and continued use of improved maize seeds: Case study of Central Ethiopia. Afr. J. Agric. Res., 5(17), 2350–2358.
USDA (United States Department of Agriculture). (2010). A national information resource for value added agriculture. USDA Report, United States of America.
Wangu, J., Mangnus, E., van Westen, A.C.M. (2020). Limitations of inclusive agribusiness in contributing to food and nutrition security in a smallholder community. A case of mango initiative in Makueni County, Kenya. Sustainability, 12(14), 1–23.
Werquin, P. (2010). Recognition of non-formal and informal learning: Country practices. Organization for Economic Co-operation and Development Report.
Wildman, M.L., Torres, R.M. (2002). Factors influencing choice of major in agriculture. North Am. Coll. Teach. Agric., 46(3), 4–9.
Zalk, N. (2017). Multi-year expert meeting on enhancing economic environment at all levels in support of inclusive and sustainable development, and the promotion of economic integration and cooperation. Departmen
Melembe, T., Mmatsatsi Senyolo, G., & Mbulaheni Mmbengwa, V. (2021). FACTORS INFLUENCING VALUE-ADDITION AGRICULTURAL CHOICE WITHIN SMALLHOLDER FARMING AGRIBUSINESSES OF GAUTENG PROVINCE IN SOUTH AFRICA. Journal of Agribusiness and Rural Development, 60(2), 183-191. https://doi.org/10.17306/J.JARD.2021.01374
Tumiso Melembe
tumisomelembe@gmail.com
Student South Africa
https://orcid.org/0000-0001-6746-0237
Student South Africa
https://orcid.org/0000-0001-6746-0237
Student, Master of Agricultural Science (Economics).
Grany Mmatsatsi Senyolo
Victor Mbulaheni Mmbengwa
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This journal permits and encourages authors to post items submitted to the journal on personal websites or institutional repositories both prior to and after publication, while providing bibliographic details that credit, if applicable, its publication in this journal.
