Socio-economic factors influencing smallholder farmers’ decision to participate in agro-processing industry in Gauteng province, South Africa

Abstract

Smallholder farmers in South Africa have not been linked successfully to sustainable agro-processing value chains. This study aimed to identify factors influencing smallholder farmers' decision to participate in the agro-processing industry, as well as the extent of their participation in the Gauteng Province. Data was collected through a structured questionnaire that was administered face-toface to respondents in a randomly purposive selected sample of 102 smallholder farmers. A double-hurdle model was used to analyse factors influencing the decision to participate and the level of participation in agro-processing. The results show that very few (19%) smallholder farmers participate in the agro-processing industry of the Gauteng Province. The results also revealed that factors such as educational level, land tenure, agro-processing training and information have a positive influence on the decision to participate. Distance to market and off-farm income negatively influence the decision to participate. The level of participation is ABOUT THE AUTHORS Ms Thulisile M. Khoza holds a Master's degree from Tshwane University of Technology, South Africa and an economist at the National Agricultural Marketing Council. The primary research interests include agro-processing, smallholder development, marketing and agricultural education.

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“…South African Government has found it challenging to transform the agro industries to include smallholder-farming entrepreneurs. Thus, Khoza et al (2019) reported that smallholder farmers in South Africa had not been linked successfully to sustainable agro-processing value chains. Currently, commercial agriculture is the leading player in the agro-processing industries in South Africa, whereas smallholder farmers play a limited role despite receiving support from the Government (Khoza et al, 2019 andMmbengwa et al, 2011).…”

“…Thus, Khoza et al (2019) reported that smallholder farmers in South Africa had not been linked successfully to sustainable agro-processing value chains. Currently, commercial agriculture is the leading player in the agro-processing industries in South Africa, whereas smallholder farmers play a limited role despite receiving support from the Government (Khoza et al, 2019 andMmbengwa et al, 2011). The lack of linkages to these chains had various productive and economic implications for the whole smallholder farming fraternity, including the extension advisory services whose critical roles are to advise the farmers to access opportunities in their respective commodity sub-sectors.…”