http://ageconsearch.umn.edu/handle/35036 Search the Channel search http://ageconsearch.umn.edu/simple-search http://ageconsearch.umn.edu/handle/19075 Title: AN ECONOMETRIC MODEL OF THE SADC MAIZE SECTOR <br/> <br/>Authors: Cutts, M.; Hassan, R. <br/> <br/>Abstract: In almost all of the Southern Africa Development Community (SADC) countries maize is cropped on a commercial basis except in Mauritius and Seychelles. Maize meal is the most important food staple in Southern and Eastern Africa. This is one of the main reason many governments in the region implement various policies to protect the maize sector. With adoption of the Uruguay Round Agreement on Agriculture (URAA) in the late 1990s, there has been a wave of market liberalization in the region. Maize production and marketing have seen major reforms with the URAA, market liberalization, and the Structural Adjustment Programs (SAPs). Private sector participation in the supply of maize inputs (improved seed and fertilizer) and grain marketing has steadily increased during this same period (Hassan et al., 2000). The pace of change differed however from country to country, as did the impacts of the reforms. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19076 Title: CREATING AGRIBUSINESS OPPORTUNITIES FOR SMALL SCALE FARMERS IN THABA NCHU BY INTRODUCING WATER HARVESTING TECHNIQUES: A PROFITABILITY AND RISK ANALYSIS <br/> <br/>Authors: Baiphethi, M.; Viljoen, M.F.; Kundhlande, G. <br/> <br/>Abstract: Thaba Nchu is a semi-arid area with low and erratic annual rainfall not exceeding 600mm. Various dryland crops are produced with relatively low yields and high risk of failure. Lack of appropriate technology and other constraints has led to most of the arable land being unused thus restricting agribusiness opportunities in an area where unemployment and food insecurity are thriving. Rainwater harvesting has a huge potential to increase crop yields in Thaba Nchu and reduce the risk of losses, and thus improve food security and enhance sustainability. Different in-field rainwater harvesting (IRWH) techniques have been tested and applied at Glen and Thaba Nchu. This paper gives comparative results for three crops produced with regard to relative profitability and risk of failure. This is done by integrating crop enterprise budgets with crop yield simulations models to calculate per hectare profits over an 81-year period and developing and analyzing cumulative probability functions. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19077 Title: INSTITUTIONAL PERSPECTIVES OF ENHANCING SMALLHOLDER MARKET ACCESS IN SOUTH AFRICA. <br/> <br/>Authors: Magingxa, Litha L.; Kamara, Abdul B. <br/> <br/>Abstract: There is growing evidence that many smallholder farmers can benefit from market-oriented agriculture. However, smallholders often face a number of barriers to accessing the markets. Smallholder market access is much cited as a factor that exacerbates the smallholder situation but little researched. This issue cannot be addressed completely without taking a holistic perspective that also takes into account the global trends in economic transformation that have a direct bearing on the current smallholder market access situation. A growing number of scholars advocate the need for an institutional analysis in trying to understand these issues Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19078 Title: INTERNET USE AND FACTORS AFFECTING ADOPTION OF INTERNET APPLICATIONS BY SUGARCANE FARM BUSINESSES IN THE KWAZULU-NATAL MIDLANDS <br/> <br/>Authors: Ferrer, S.R.D.; Schroder, D.H.; Ortmann, G.F. <br/> <br/>Abstract: Regression analysis is used to delineate significant determinants associated with the use of Internet applications by commercial sugarcane farm businesses in the KwaZulu-Natal Midlands. Eighty-six percent of farm businesses surveyed had Internet connections and 83 percent used Internet applications (including e-mail, on-line banking and gathering information from the World Wide Web) for business purposes. Results indicate that significant determinants of the range of Internet applications by farm businesses include a) the period of time for which the farm business has been connected to the Internet, b) the principal farm decision-maker's education, time available to spend on the Internet and his or her perceptions of the Internet as a source of information, and c) characteristics of other farm computer users. Activities that may promote use of the Internet applications by farm businesses include the development of policies and software to reduce risks of Internet use, and improving the Internet skills of farmers. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19079 Title: MEASURING THE SUPPLY RESPONSE FUNCTION OF TOBACCO IN ZIMBABWE <br/> <br/>Authors: Leaver, Rosemary <br/> <br/>Abstract: This paper presents an estimate of the price elasticity of supply for tobacco output in Zimbabwe using an adapted Nerlovian model. The results indicate a short-run elasticity of +0.34 and a long-run elasticity of +0.81, suggesting that tobacco farmers are highly unresponsive to price changes. These estimates are similar to those obtained for tobacco in supply response studies conducted in other developing African countries. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19080 Title: INEFFICIENCIES OF INSTITUTIONAL ARRANGEMENTS IN INTERNATIONAL WHEAT TRADE – A PRELIMINARY INVESTIGATION OF EASTERN EUROPE AND SOUTH AFRICA <br/> <br/>Authors: Lemmer, Wessel; Onegina, Victoria <br/> <br/>Abstract: The beginning of the new century marked important changes in the world wheat market. These changes relate to traditional wheat export countries. In future, non-traditional wheat export countries in Eastern Europe, such as the Ukraine, may increasingly put pressure on traditional wheat suppliers in the world market. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19081 Title: IMPACT OF CAPITAL ON THE GROWTH PROCESS OF A SUGARCANE FARM IN MPUMALANGA <br/> <br/>Authors: Haile, B.O.; Grove, B.; Oosthuizen, L.K. <br/> <br/>Abstract: The research was conducted for a representative 50 ha farm in the Onderberg region in Mpumalanga province, where farmers use a combination of centre-pivot, drip, and dragline systems of different sizes to grow sugarcane. The main intention was to establish a multi-period linear programming model capable of economically evaluating a farm expansion decision making process for farmers faced with investment decisions in alternative irrigation systems, taking in to account the available initial capital of the farm. A linear programming (LP) model was used to assign a mainline for a total of twelve irrigation system combinations based on the assumption that the farmer wishes to start with a 30 ha centre-pivot investment. Generalized Algebraic Modelling System (GAMS) was used to formulate the farm growth model as mixed integer dynamic linear programming (MIDLP) for a 15 year planning horizon. Based on the results, farmers are initially forced to invest in lower cost irrigation systems when they lack capital to start a farm business due to the time value of money. They only consider lowering operating costs by investing in expensive irrigation systems when they have more own capital or borrowing capacity. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19082 Title: IDENTIFYING PROBLEMS AND POTENTIAL OF THE CONVERSION TO ORGANIC FARMING IN SOUTH AFRICA <br/> <br/>Authors: Niemeyer, Katharina; Lombard, Jan <br/> <br/>Abstract: The world-wide trend of a growing organic sector is also detectable in South Africa. From 2000 to 2002 the number of farmers who had converted to organic farming in South Africa increased sixfold, and although organic farming still accounts only for a minute percentage of the total number agricultural producers, the increasing importance of this sector is apparent. Based on survey results, information was gathered about organic farmers in South Africa concerning socio-demographic aspects, farming operations, motivations and problems of the conversion process. These results were analysed in the context of possibilities to support the organic farming movement theoretically and practically. With respect to the findings it is recommended that the conversion to organic farming should be supported, not necessarily via direct financial support to the organic farmers, but by means of different instruments such as the development of an improved infrastructure for marketing, networking and information exchange. Several areas for future research are identified to increase our understanding of organic farming in the South African context. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19083 Title: MULTINOMIAL LOGIT ANALYSIS OF HOUSEHOLD COOKING FUEL CHOICE IN RURAL KENYA: A CASE OF KISUMU DISTRICT <br/> <br/>Authors: Pundo, Moses O.; Fraser, Gavin C.G. <br/> <br/>Abstract: The study uses multinomial logit model to investigate the factors that determine household cooking fuel choice between firewood, charcoal, and kerosene in Kisumu, Kenya. Empirical results indicate that level of education of wife, the level of education of husband, type of food mostly cooked, whether or not the household owns the dwelling unit, and whether or not the dwelling unit is traditional or modern type are important factors that determine household cooking fuel choice. Implications for regional and national fuel policies are discussed. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19084 Title: TECHNICAL EFFICIENCY OF RESETTLEMENT FARMERS OF ZIMBABWE <br/> <br/>Authors: Mushunje, Abbyssinia; Belete, Abenet; Fraser, Gavin <br/> <br/>Abstract: This paper examines the technical efficiency of the resettlement sector of the agricultural system in Zimbabwe. The land reform programme aims to redistribute land from large-scale commercial farmers to the small-scale peasantry sector so as to reduce rural poverty. Since such an agrarian reform could result in higher output, higher labour absorption, and a more equitable distribution of income, it is important to assess the level of efficiency of the beneficiaries of this programme. The stochastic frontier function model of the Cobb-Douglas type was used to determine the technical efficiency of a group of 44 cotton farmers from Mutanda resettlement scheme of Manicaland province. Technical inefficiency effects are estimated and are assumed to be a function of other observable variables related to the farming operations. The results reveal some technical efficiency levels of the sample farmers that are varied widely, ranging from 22 per cent to 99 percent, with a mean value of about 71%. The technical inefficiency effects are found to be significant at the 25 per cent level. Technical inefficiency of cotton production decreased with increased family size and age of the head of household, but increased with farm size and education level of head of household. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19085 Title: MODELLING THE IMPACTS OF MACROECONOMIC AND TRADE POLICIES ON THE SOUTH AFRICAN AGRICULTURAL SECTOR <br/> <br/>Authors: Letsoalo, Anthony; Kirsten, Johann <br/> <br/>Abstract: The purpose of this paper is to investigate the importance of macroeconomic and trade polices on the agricultural sector in South Africa. Macroeconomic and trade policies are determined outside the agricultural sector and since the 1990s South Africa has been moving towards deregulation and trade liberalization. Structural econometric model was applied to determine the impacts of changes in macroeconomic and trade policies on the agricultural sector. Two Stage Least Squares (TSLS) was the technique used because of the simultaneous nature of the equations in the model. The results of the study shows that 10 percent reduction in import tariffs will lead to 11.44 percent increase in the degree of openness of the South African economy. Furthermore, the appreciation of the Rand will raise the domestic prices received by farmers. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19086 Title: THE ROLE OF TRUST IN THE PERFORMANCE OF SUPPLY CHAINS: A DYAD ANALYSIS OF SMALLHOLDER FARMERS AND PROCESSING FIRMS IN THE SUGAR INDUSTRY IN SWAZILAND <br/> <br/>Authors: Masuku, M.B.; Kirsten, J.F. <br/> <br/>Abstract: The purpose of this paper was to investigate the role of trust in the performance of the sugar industry supply chain in Swaziland. The study utilized perceptions of 124 smallholder cane growers in the sugar industry in Swaziland. Items presented in a likert type scale were used to measure cane growers' trust in the millers. Descriptive statistics involving cross tabs was used to determine the impact of trust on the performance of the cane growers, which in turn has an influence in the performance of the whole sugar chain.The results indicate that farmers who have trust in the millers perform better than those without trust, and hence they contribute to the performance of the whole chain, in terms of more and good quality sugarcane supplied to the mill and that implies more sugar to be produced and increased income to the industry as a whole. The results imply that a relationship founded on trust, mutual respect is more likely to succeed than a relationship of convenience supported by legal contingencies. Therefore, there is a need for honesty, fairness and absence of opportunistic behaviour between millers and cane growers, for the industry to improve its performance Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19087 Title: THE IMPACT OF MIGRATION AND REMITTANCES TO RURAL MIGRATION-SENDING HOUSEHOLDS: THE CASE OF THE LIMPOPO PROVINCE, SOUTH AFRICA <br/> <br/>Authors: Rwelamira, Juliana; Kirsten, Johann <br/> <br/>Abstract: The research question is to assess the contribution of migration to rural livelihoods through remittances to the migration – sending rural households. The paper presents empirical findings from a household survey conducted in the Limpopo Province of South Africa in 1999/2000.The survey covering 585 households in 24 villages. The results indicate that migration is prevalent, and is a source of support for households to supplement their livelihood. The majority of migrants moved away from home to look for a job, with the first period of migration taking place between the ages of 15 and 30 (mean of 23). Remittances form a significant proportion (32%) of the total rural household income, surpassed only by salary and wage earnings (46%). Even though the amounts of remittances and their uses are extremely varied within and between countries, regions and even villages, they provide one of the important means through, which migrants maintain close links with the households left behind, and contribute significantly to the livelihood of a large proportion of the rural population. On the average, local wage and salary income contribute almost R17 230 per annum. This is by far the dominant source of income; it is followed by migrant remittances (cash and goods), which average R14,342 per annum. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19088 Title: A Linearized Almost Ideal Demand System (LA/AIDS) Estimation of the Demand for Meat in South Africa <br/> <br/>Authors: Taljaard, P.R.; Alemu, Z.G.; van Schalkwyk, H.D. <br/> <br/>Abstract: A linear approximated Almost Ideal Demand System (LA/AIDS), estimated in first differences, were used to estimate the demand relations for meat (beef, chicken, pork and mutton) in South Africa from 1970 –2000. Two tests for weak separability, including an F and Likelihood ratio version, failed to reject the null hypothesis of weak seperability, confirming that the four meat products are separable, and should be modelled together. According to the Hausman exogeneity test, the expenditure term in the South African meat demand model is exogenous. As a result, a Restricted Seemingly Unrelated Regression (RSUR) was used to estimate the model, whereafter the estimated parameters were used to estimate compensated, uncompensated and expenditure elasticities. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19089 Title: THE EFFECT AND PERSISTENCE OF MAJOR CHANGES IN ECONOMIC POLICIES ON THE LONG-TERM PERFORMANCE (TREND) OF ETHIOPIAN AGRICULTURE <br/> <br/>Authors: Alemu, Z.G.; Oosthuizen, L.K.; van Schalwyk, H. <br/> <br/>Abstract: Agriculture in the Ethiopian economy has survived three major structural breaks, namely the 1974 change of policy in favour of a command-based economic system, the 1984 famine and the 1992 change of policy that introduced a market economy. A regression procedure was applied to analyze the effect of these breaks on the slope and intercept of agricultural GDP. In addition, statistical properties were studied to measure the degree of persistence of shocks in agricultural GDP. In the regression equation, only the 1984 famine was found to be significant. The non-significance of policy parameters in the regression equation could be associated with a lack of infrastructural facilities and the subsistence nature of Ethiopian agriculture. The study of the statistical property of agricultural GDP revealed that agricultural GDP is a trend stationary process, which implies that fluctuations on agricultural GDP series, which mostly occur due to good or bad weather conditions, are temporary and dissipate in a short period of time. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19090 Title: THE ECONOMICS OF USING MANURE STORED UNDER TWO DIFFERENT SYSTEMS FOR CROP PRODUCTION BY SMALL-SCALE FARMERS IN KWAZULU-NATAL <br/> <br/>Authors: Mkhabela, T.S. <br/> <br/>Abstract: Several manure use options were analysed for profitability using results from research and farmer participatory trials that were conducted in the small-scale farming sector in KwaZulu-Natal, South Africa. The options analysed for profitability were a) not using any manure b) using aerobically composted (heap stored) manure, c) using manure improved through anaerobic storage (pit-stored), d) different manure application methods i.e. banding, broadcasting and station placement and the use of manure in combination with inorganic fertiliser. The use of manure provided a marginal rate of return (MRR) of at least 600% compared to not using manure. The marginal rate of return on manure use was increased significantly by composting manure in pits. Financial benefits obtained from pit- stored manure were much higher in the first year of manure application compared to those of heap- stored manure. Higher returns from heap- stored manure were obtained in the second and third season after manure application. Overall undiscounted financial benefits for the three years were marginally higher for heap- stored manure. Using a discount rate of 100% financial benefits from using pit-stored manure were much higher than those of heap stored manure as pit-stored manure provided much higher returns in the first year of application. Higher financial benefits were obtained from supplementing manure with inorganic fertiliser compared to using manure alone. Banding and placing manure on-station (applying the manure to the hill of maize) increased returns from using both pit and heap stored manure. The conventional practice of broadcasting manure was found not to be profitable. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19091 Title: THE ETHICS OF INFORMAL SETTLEMENTS IN FLOOD PLAINS: INSIGHTS GAINED FROM A STUDY TESTING THE MERITS OF PALAEOFLOOD AND CONVENTIONAL FLOOD HYDROLOGY IN FLOOD CONTROL PLANNING AT SOWETO-ON-SEA <br/> <br/>Authors: Solomon, Mompati; Viljoen, M.F. <br/> <br/>Abstract: Adhering to planning ethics is especially relevant when flood control planning of communities who settled in flood plains is at stake. Soweto-On-Sea (SOS) is an informal settlement in the flood plain of the Lower Chatty River near Port Elizabeth. As part of a research project which compared palaeoflood and conventional flood hydrology in the planning of flood control measures for SOS within a Cost Benefit Analytical (CBA) framework attention was also given to some ethical considerations. This paper, inspired by the conduct, rules and principles that govern the informal settlement of SOS evaluates some flood plain development and planning issues with a code of ethical conduct for planners and comes up with explanations for "unethical" conduct of and towards flood plain residents as well as some suggestions for improving future planning and developmental endeavours. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19092 Title: ARE WINE CO-OPS CREATING VALUE? <br/> <br/>Authors: Hall, J.H.; Geyser, J.M. <br/> <br/>Abstract: This article examines introducing Economic Value Added (EVA) as a performance measure for wine cooperatives in South Africa to determine whether member's value have been created. After a thorough explanation and calculation of the components of EVA, the EVA of a number of co-operatives were calculated and analyzed. Important trends were identified, conclusions drawn and recommendations made from these results. Finally, potential improvement opportunities resulting from using EVA as a performance measure in wine cooperatives are discussed. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19093 Title: A THEORETICAL PERSPECTIVE ON AGRIBUSINESS AND ETHICS IN A SOUTH AFRICAN CONTEXT <br/> <br/>Authors: Kirsten, Johann <br/> <br/>Abstract: The theme of this conference provides an ideal opportunity to take this argument and the case I made for cross disciplinarity, a bit further. Last year I have argued that agricultural economists need to utilise the strengths of sociology, anthropology and political analysis in order to be better equipped to tackle the challenge of black empowerment in South African agriculture. This year I will show how we need these disciplines and also philosophy if we want to address 'ethics' in business. The point that was made throughout my earlier paper is that economic theory sacrifices far too much relevance in its pursuit of ever-greater rigour. Given the challenges in agricultural sector in Africa, we need to see much stronger efforts to integrate the building of theory in economics with the study of reality. Tue, 29 Oct 2002 22:58:59 GMT http://ageconsearch.umn.edu/handle/19094 Title: AN INSTITUTIONAL ECONOMIC APPRAISAL OF WORKER EQUITY SCHEMES IN AGRICULTURE: <br/> <br/>Authors: Karaan, Mohammad <br/> <br/>Abstract: The institutional economic appraisal conducted in this paper confirms that equity schemes are subject to institutional incompleteness as proposed in ICT. The incompleteness stem from the lack of verifiability related to social capital, embeddedness, governance and micro performance. In addition, they lack the requisite ex ante incentives to enable ex post adaptation, counterveilance over opportunism, and the distribution of residual claims and control. The first reason for incompleteness emanate from the motivations of the initiators, which is opportunism by landowners to secure their assets in the face of uncertainty and/or enhance their returns in the marketplace. The lack of worker effort and options in the early stages raises credible commitment questions. Examining the governance aspects of equity schemes reveal that they are consistent with modern trends to separate ownership and control. However, a key concern is the asymmetry in human capital and subsequently in power, residual control, gratification, and ultimately economic empowerment. The analysis is aimed at identifying the incentives and innovations required to make equity schemes, as a type of shareholder contract, more complete and credible in an empowerment context. Recommendations towards institutional innovation are offered. Tue, 29 Oct 2002 22:58:59 GMT