A metafrontier analysis of sheep production in the N8 development corridor

dc.contributor.advisorMatthews, Nicolette
dc.contributor.advisorBahta, Yonas T.
dc.contributor.authorNyam, Yong Sebastian
dc.date.accessioned2017-08-30T09:32:33Z
dc.date.available2017-08-30T09:32:33Z
dc.date.issued2017-06
dc.description.abstractEnglish: In South Africa, sheep enterprises play an important role as a source of livelihood for many farmers, especially smallholder farmers. The productivity of sheep farmers in South Africa is very low. The lack of analytical evidence on efficiency levels of smallholder sheep farmers in the different sheep production systems limits policy-making on optimal allocation of resources. In addition, these smallholder farmers are faced with numerous constraints regarding production, which is considered to be one of the many factors impeding their productivity and livelihood. Very little is known empirically about the constraints faced by these farmers and how they can be overcome. This study analysed the factors that influence the productivity of sheep production to enhance the livelihoods of smallholder sheep producers in the N8 development corridor and to identify and rank the constraints faced by smallholder sheep farmers along the N8 development corridor. Data for this study was collected with the use of structured questionnaires. A sample size of 217 smallholder sheep farmers comprising 157 from Thaba Nchu and 60 from Botshabelo was used. The stochastic metafrontier model was used to estimate technical efficiency and technology gaps across the different farms in the study areas. The Kendall’s coefficient of concordance was used to identify and rank the constraints faced by smallholder farmers. The empirical results of the study revealed that farmers in both Thaba Nchu and Botshabelo are technically inefficient. The empirical results show that herd size and feed cost had significant positive effects on sheep output in Thaba Nchu municipal district, indicating that these variables are vital for enhancing sheep production in Thaba Nchu. However, land size and sheep loss were found to have a significant negative effect on sheep output in Thaba Nchu. The negative effect of land size on sheep output was completely unexpected. It is assumed that these farmers have relatively small herds, and increasing land size will only add to the cost of managing the land. On the other hand, land and transport costs had significant positive effects on sheep output Botshabelo, indicating that these inputs are vital to enhancing sheep production in this district municipality. Sheep loss had the expected significant negative effect on sheep production in Botshabelo. In the pooled sample, herd size, feed cost and labour were found to have significant positive effects on sheep production in the study areas. However, land size and sheep loss were found to have a significant negative effect on sheep output in the pooled sample. The gamma value of 0.679 means that about 67.9% of the variation in sheep output in Thaba Nchu is explained by technical inefficiency, while 32.10% of the variation is due to random shocks and statistical noise. For Botshabelo, the gamma value (0.779) was relatively higher than in Thaba Nchu, indicating that the effects of inefficiency on variation of the sheep output is far larger than that of random shocks. The pooled sample had a gamma value of 0.799. This means that 79.9% of the variation in sheep production in the study areas is due to inefficiency and 11.1% is due to random shocks. The variation in sheep production for the study areas is generally due to technical inefficiency on the part of the sheep farmers. The stochastic production frontier analysis showed that the average technical efficiency of Thaba Nchu farmers was 67.3% and 65.7% for farmers in Botshabelo. This result indicates that there is 32.7% potential for Thaba Nchu farmers to expand their production by operating at full technical efficiency level, while the scope for Botshabelo to increase the level of efficiency using available farm resources and technologies is about 34.3%. The variables that influence the technical efficiency level of Thaba Nchu farmers are indigenous sheep breed, education level, veterinary services and market distance. Indigenous sheep and market distance had a significant negative effect on technical efficiency in Botshabelo while farm experience and crossbreeding method had significant positive effects on technical inefficiency. Theft, lack of capital, diseases and parasite were found to be the most severe constraints facing the sheep farmers. The average technical efficiency scores estimated relative to the metafrontier (TEm) for Thaba Nchu was 0.495 while for Botshabelo was 0.442. The results indicate further that a regional production frontier is necessary to advise farmers in each district on ways to improve the productivity and efficiency of sheep production. It can be concluded from the results of the study that farmers in the study area are producing well below the production frontier. This means that farmers have the potential to increase their productivity and efficiency in order to produce at full capacity. The policy recommendation arising from this study is that farmers should be trained on proper farm management techniques and that proper market channels should be developed for farmers to sell their products. Building new fences and improving old ones will help prevent theft and will increase sheep outputs.en_ZA
dc.description.abstractAfrikaans: In Suid-Afrika speel ondernemings wat by skaapboerdery betrokke is 'n belangrike rol as bron van lewensonderhoud, veral onder kleinboere. Die produktiwiteit van skaapboere in Suid-Afrika is baie laag. Daar is 'n tekort aan analitiese inligting oor die doeltreffendheid van kleinboere, wat verskillende skaapproduksiestelsels vir skaapboerdery toepas. Dit beperk beleidmaking oor optimale toewysing van hulpbronne. Verder word hierdie kleinboere deur 'n verskeidenheid beperkings ten opsigte van produksie gekonfronteer, en dit is een van die baie faktore wat hulle produktiwiteit en lewensbestaan strem. Baie min empiriese inligting is bekend oor die beperkinge wat dié boere konfronteer en hoe hulle oorkom kan word. Hierdie studie ontleed die faktore wat die produktiwiteit van skaapproduksie beïnvloed, met die doel om die lewensbestaan van kleinboere wat in die N8 ontwikkelingskorridor met skape boer, te verbeter, en om die beperkinge wat die klein- skaapboere in die N8 ontwikkelingskorridor konfronteer, te rangorden. Data vir hierdie studie is deur middel van 'n gestruktureerde vraelys, in Engels, versamel. 'n Datastel bestaande uit 217 klein- skaapboere is gebruik: 157 van Thaba Nchu en 60 van Botshabelo. Die stogastiese metagrensmodel is gebruik om tegniese doeltreffendheid en tegnologiegapings by die verskillende plase in die studieareas te beraam. Kendall se koëffisiënt van konkordansie is gebruik om die beperkinge wat kleinboere konfronteer, te identifiseer en rangorden. Die resultate van die studie dui aan dat boere in sowel Thaba Nchu as Botshabelo tegnies ondoeltreffend is. Die empiriese resultate dui aan dat kuddegrootte en die koste van veevoer 'n beduidende positiewe effek het op skaapuitset in die Thaba Nchu munisipale distrik, wat beteken dat hierdie veranderlikes noodsaaklik is om skaapproduksie in Thaba Nchu te verbeter. Daar is bevind dat grondgrootte en skaapverliese 'n beduidende negatiewe effek op skaapuitset in Thaba Nchu het. Dit beteken dat 'n toename in die gebruik van of die grootte van grond, en groter skaapverliese, skaapuitset sal verminder. Die negatiewe effek van grondgrootte op skaapuitset was heeltemal onverwags. Daar word aanvaar dat hierdie boere se kuddes relatief klein is, en as hulle meer grond vir boerdery het sal dit die koste van bestuur van 'n groot gebied met 'n klein kudde, verhoog. Aan die ander kant het grond en vervoerkoste 'n beduidende positiewe effek op skaapuitset in Botshabelo, wat beteken dat hierdie insette noodsaaklik is vir die verbetering van skaapproduksie in dié distriksmunisipaliteit. Skaapverliese het 'n beduidende negatiewe effek op skaapproduksie in Botshabelo. 'n Toename in skaapverliese sal skaapuitset in die distriksmunisipaliteit verminder. Ten opsigte van die volledige datastel is bevind dat kuddegrootte, koste van voer en arbeid 'n beduidende positiewe uitwerking op skaapproduksie in die studieareas het, wat beteken dat 'n toename in die gebruik van enige van dié veranderlikes sal veroorsaak dat skaapuitset in die studieareas sal toeneem. Daar is egter bevind dat grondgrootte en skaapverliese 'n beduidende negatiewe effek op skaapuitset van die totale datastel het. Die beraamde gammawaarde vir Thaba Nchu was 0.679 beteken dat ongeveer 67.9% van die variasie in skaapuitset deur tegniese ondoeltreffendheid verduidelik word, terwyl 32.10% van die variasie te wyte is aan willekeurige skokke en statistiese geraas. Vir Botshabelo was die gammawaarde (0.779) relatief hoër as in Thaba Nchu, wat aandui dat die effekte van ondoeltreffendheid op variasie van skaapuitset baie groter is as dit wat deur willekeurige skokke veroorsaak word. Die saamgestelde datastel het ‘n gammawaarde van 0.799 gehad. Dit beteken dat 79.9% van die variasie in skaapproduksie in die studieareas te wyte is aan ondoeltreffendheid en 11.1% is weens willkeurige skokke. Die variasie in skaapproduksie vir die studieareas is oor die algemeen te wyte aan tegniese ondoeltreffendheid aan die kant van die skaapboere. Die stogastiese produksiefgrensanalise toon dat die gemiddelde tegniese doeltreffendheid van boere in Thaba Nchu 67.3% was -- hoër as dié van Botshabelo, wat 'n gemiddelde tegniese doeltreffendheid van 65.7% gehad het. Hierdie bevinding toon dat daar 'n potensiaal van 32.7% is vir boere in Thaba Nchu om hulle produksie uit te brei deur teen volle tegniese doeltreffendheid te werk. Die moontlikheid vir boere in Botshabelo om hulle vlak van doeltreffendheid te verhoog deur beskikbare plaashulpbronne en tegnologie te gebruik, is ongeveer 34.3%. Die veranderlikes wat die tegniese doeltreffendheidsvlak van Thaba Nchu se boere beïnvloed is inheemse skaaprasse, opvoedingsvlak, veeartsenydienste en afstand van die mark af. Inheemse skaaprasse, opvoeding en afstand van die mark af het 'n beduidende negatiewe uitwerking op tegniese ondoeltreffendheid van skaapboere in Thaba Nchu, wat aandui dat hierdie veranderlikes nodig is om doeltreffendheidsvlakke in die distrik te verhoog. Veeartsenydienste het 'n beduidende positiewe invloed op tegniese ondoeltreffendheid, wat suggereer dat hierdie veranderlike geneig is om die doeltreffendheidsvlak van die boere te verlaag. Inheemse skape en afstand van die mark af het 'n beduidende negatiewe effek op tegniese doeltreffendheid in Botshabelo terwyl ervaring van boer en kruisteelmetode ‘n beduidende positiewe effek op tegniese ondoeltreffendheid het. Diefstal, tekort aan kapitaal, siektes en Die gemiddelde tegniese doeltreffendheid, wat ten opsigte van die metagrens bereken is, is vir Thaba Nchu (TEm) 0.495, terwyl die gemiddelde TEm vir Botshabelo 0.442 was. Die resultate dui aan data ‘n produksiegrens vir die streek nodig om boere in elke distrik te adviseer oor hoe om die produktiwiteit en doeltreffendheid van skaapproduksie te verbeter. Die gevolgtrekking uit die resultate is dat boere in die studiearea ver onder die produksiegrens presteer. Dit beteken dat boere die potensiaal het om hulle produktiwiteit en doeltreffendheid te verhoog ten einde teen volle kapasiteit te produseer. Die beleidsaanbeveling wat uit dié studie voortvloei is dat boere opgelei moet word om behoorlike boerderybestuurstegnieke toe te pas, en dat die regte markkanale ontwikkel moet word waar boere hulle produkte kan verkoop. Diefstal kan beperk word en skaapuitsette kan verhoog word as nuwe heinings opgerig word en oues herstel word.af
dc.description.sponsorshipIntra-ACP Scholarship Schemeen_ZA
dc.identifier.urihttp://hdl.handle.net/11660/6708
dc.language.isoenen_ZA
dc.publisherUniversity of the Free Stateen_ZA
dc.rights.holderUniversity of the Free Stateen_ZA
dc.subjectTechnical efficiencyen_ZA
dc.subjectDeterminants of technical inefficiencyen_ZA
dc.subjectSouth Africaen_ZA
dc.subjectN8 development corridoren_ZA
dc.subjectMetafrontieren_ZA
dc.subjectProductivityen_ZA
dc.subjectSmallholder sheep productionen_ZA
dc.subjectTechnology gap ratioen_ZA
dc.subjectStochastic metafrontier modelen_ZA
dc.subjectSheep -- South Africaen_ZA
dc.subjectSheep -- Productivityen_ZA
dc.subjectFarmers -- South Africa -- Thaba Nchuen_ZA
dc.subjectFarmers -- South Africa -- Botshabeloen_ZA
dc.subjectDissertation (M.Sc.Agric. (Agricultural Economics))--University of the Free State, 2017en_ZA
dc.titleA metafrontier analysis of sheep production in the N8 development corridoren_ZA
dc.typeDissertationen_ZA
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