Effect of enterprise development support programme on market participation and profitability of indigenous vegetable farmers in South Africa

Abstract

African indigenous vegetables play a very significant role in food security of poor households in both urban and rural settings. Such vegetables provide vital energy, micronutrients and act as medicinal plants to some households. Recently, some African indigenous vegetables have been underutilised. The aim of this study was to analyse the effect of enterprise development support programme on market participation and profitability of indigenous vegetable farmers in South Africa. The population of the study consisted of 86 farmers engaged in the marketing of African leafy indigenous vegetables in South Africa. Probit regression, and stochastic frontier profit inefficiency estimate were employed in the study to test for market participation and profitability respectively. The results revealed that most farmers who received support from ARC also received support from other organisations. A lot of ARC farmers (51 % ) were females while 58% of non-ARC farmers were males. Both groups were dominated by farmers aged 41 years and above, being all married. Farm size for both ARC and non-ARC famers was between 0.5 - 5 hectares held by 61 and 62% of farmers respectively. Most ARC farmers received support from different organisations and participated in the informal market. 34% of farmers received production training, 27% received input support while 83% received market linkage. For Non-ARC farmers who received similar support, participation was more in the formal market: production training represented 42%, input support (47%), extension support (62%) and market linkage (40%). It was found that support from the Department of Agriculture through infrastructure, assisted farmers to improve participation in markets. (37% of ARC and 58% non-ARC farmers involved in informal markets). Probit regression model was used to identify factors that influence fanners ' participation in markets. The results showed that the type of vegetable increased the probability off armers' participation in the informal market by (3.64: P<0.005) for spinach and (3.08608: P<0.038) for amaranth. A significance level of 5% was recorded for revenue, gender, cooperative membership as well as being an ARC farmer. In the second analysis, determinants of indigenous vegetable farmers' profit was tested in the study. From the results, it was established that seed and land had a negative effect on profit but were statistically significant at 10 and 1 % respectively. Interaction of variables revealed a significance level of 5% (fertiliser*fertiliser), 1 % (seed*seed) and 10% (fertiliser*seed). From the results of the study, it is recommended that enterprise development support be enhanced as it is of great help to farmers. It is further recommended that enterprise support programmes be enhanced, and for input support, profitability and smallholder profit efficiency to be improved.