Socio-economic impact of agricultural and agro-processing co-operatives on food security and incomes in Limpopo Province, South Africa

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Date
2016-09
Authors
Dagada, Maanda Caiphus
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University of the Free State
Abstract
English: Food security is central to the policy of the new democratic government in South Africa. An estimated 70 percent of rural populations are classed as poor with most of them still locked into poverty and subsistence farming. However, there is a growing realization and acceptance that agricultural and processing co-operatives can be both productive and efficient at alleviating poverty through a food security strategy. Most smallholder farmers have established co-operatives to help themselves. Co-operativesā€˜ policies and strategies are currently being put in place to redress past neglect of smallholder farmers, who are predominately black in Limpopo Province. The rural traditional system is dependent on rural institutions for a livelihood. Agricultural and processing co-operatives are central to the supply of farm inputs, farm tillage, marketing, product value adding and provision of much needed finance. However, their sustainability beyond the period they have government funding is questionable. The co-operative enterprise plays a major role in food production. Records show that in 1993 to 1994, 180 million people were members of 330 000 agricultural co-operatives in 47 countries. Also, in developing countries co-operative membership is high. In Ivory Coast 827 000 small farmers are members, in Nicaragua 78% of maize and 59% of beans are marketed by co-operatives. Present trade, marketing, and institutional policies in South Africa make limited provision for the unique interests of emerging small-scale farmers. Furthermore, the current institutions involved in promoting market access are not well co-ordinated. Co-operatives have direct linkage with extension services. The extension services play a vital role on the development of co-operatives. It was noted that where there is strong link between co-operatives and extension, those co-operatives are still surviving and able to provide enough food in their families. Market access is another factor that determine the sustainability of the co-operative and its ability to have significant potential to contribute to the reduction of poverty and are better able to mobilise wide participation and can reduce costs, enhance incomes and improve the viability of business activities. The co-operative model which was developed and practiced by LADEP showed how co-operatives can be developed and be sustainable even in the rural province of Limpopo. As part of the model, production of market oriented crops could be encouraged via contract production, whereby processors provide financial, technical and marketing services to smallholders. To make the plan viable and to ensure beneficiation throughout the value chain, co-operatives should have a stake at all levels of the value chain. This can possibly be done by establishing primary, secondary and tertiary co-operatives. It is difficult for smallholders to penetrate the monopoly of market fraternity individually - clubbing together as co-operatives can give them enough bargaining power and solve the economics of scale challenge. This way they can enhance and improve their production which, will resulted in poverty reduction and increase income.
Afrikaans: Voedsel sekuriteit is sentraal tot die nuwe demokratiese regering se beleid in Suid Afrika. Na beraming is 70 persent van die landelike gemeenskap steeds geklasifiseer as arm en is die meeste van hulle ook vas gevang in armmoede en bestaans boerdery. Daar is egter n groeiende tendens van besef en aanvaarding dat landbou en vervaardigings ko-operatiewe as produktiewe en effektiewe meganismes kan dien in die oplossing van armmoede deur dit deel te maak van n voedsel sekuriteits strategie. Klein boerdery eienare het kooperasies gevorm om hulle self te help en word beleids rigtings en strategiee tans in plek gestel om die historiese uitsluiting van swart kleinboere in Limpopo Provinsie aan te spreek Die tradisionele sisteme in landelike omgewings is afhanklik van instellings wat bydra tot die voortbestaan van die stelsel en daarom is landbou en verwerkings kooperasies midde in die proses deur die voorsiening van dienste soos finansiering, plaas insette, ploeg dienste, bemarking en waarde toevoeging. Kommer bestaan wel oor die finansieele stabiliteit van die entiteite as regerings fondse nie meer beskikbaar is nie. Ko-operasies het histories n integrale deel gevorm van voedsel produksie en bewys bestaan dat gedurende 1993 en 1994 nagenoeg 180 miljoen mense lede was van 330 000 landbou ko-operasie in 47 lande. In ontwikkelde lande is die lede talle ook steeds hoog. In die Ivoorkus is 827 000 kleinboere lede van ko-operasies en word 78% van mielies en 59% van die bone in Nicaragua deur kooperasies bemark. In plaaslike handel, bemarking en institutionele beleids rigtings word min voorsiening gemaak vir die unieke behoeftes van onwikkelende klein boere en is die instellings verantwoordelik vir mark blootstelling van Suid Afrika nie goed gekoordineerd nie. Kooperasies en voorligtings dienste vorm n hegte band met mekaar en speel voorligting n belangrike doel ten opsigte van die ontwikkeling van kooperasies. Dit is meldbaar dat waar voorligting en kooperasies sterk bande het daar steeds produksie plaas vind wat huishoudings van voldoende voedsel voorsien vir hulle voort bestaan. Mark toegang is n ander belangrike faktor wat bydra tot die stabilitiet van kooperasies en kan n beduidende impak he op armoeds verligting deur die mobilisering van deelnemers deur koste te verlaag van produksie en dus meer geld beskikbaar stel aan huishoudings en die besighede meer stabiliseer en lewensvatbaar maak. Die kooperatiewe model wat deur LADEP ontwikkel en toegepas is, is bewys hoe kooperasies kan werk en volhoubaar voortbestaan in n Landelike Provinsie soos Limpopo. Deel van die model is waar mark georienteerde produksie van gewasse plaas vind in die vorm van gekontrakteerde boere, proseseerders voorsien finansieele. tegniese en bemakings ondersteuning aan die klein boere as deel van die packet. Om die plan volhoubaar en voordelig te maak moet klein boere deel wees van die verskillende aktiviteite van waarde toevoeging in die kooperasie en kan bewerstelling word deur die totstankoming van primere, sekondere en tersieere kooperasies In die heersende monopolistiese market in landbou is dit feitlik onmoontlik vir individuele klein boer om impak te maak en kan die saamstaan in die vorm van n kooperasie die boere beduidende bedingings magte gee wat die beperkinge in skaal van operasie aanspreek. Dit kan moontlik bydra om produktiviteit te verhoog wat kan bydra tot armoeds verligting en verhoogde verdienste.
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Keywords
Cooperatives, Socio-economic, Agro-processing, Agriculture, Market, Operator, Produce, Profit, Income, Co-operative development models, Food security -- South Africa -- Limpopo, Thesis (Ph.D. (Centre for Sustainable Agriculture, Rural Development and Extension ))--University of the Free State, 2016
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