Developing an agribusiness growth model for emerging farmers in Amajuba District Municipality in KwaZulu-Natal

Abstract

The strategies used for developing and nurturing the growth of agribusiness entities are critical for leveraging the viability and sustainability of the agribusinesses initiated by emerging farmers. It is in that context that this research explored the agribusiness development and growth framework which is suitable for emerging farmers in Amajuba District Municipality. The fundamental aim of the study was to identify the major impediments and the improvement strategies that can be adopted. To accomplish that, the study uses an interpretivist research paradigm as well as a case study blended with an exploratory research design aa nd qualitative research method to evaluate the real-world experiences of thirty emerging farmers in Amajuba District Municipality t the agribusiness development and growth approaches that they use as well as their associated impediments. Using ATLAS 8.2 of 9 Software, thematic analysis of the emerging qualitative findings revealed most of the agribusiness development approaches used by emerging farmers in Amajuba District to chronologically unfold according to certain three main phases. Such three main phases were reiterated to include phase 1: land access and acquisition, phase 2: farming and phase three: marketing. Certainly, such three-phases’ approach contrast the theoretical articulations that highlight the four critical stages for emerging farmers’ agribusiness development and growth to include agribusiness-market analysis, agribusiness ideation and conceptualisation, establishment of farming structure and facilities and subsequently farm products’ commercialisation. However, as different emerging farmers undergo such different phases of establishing their farming businesses, empirical findings still indicated that there are challenges that still mar the capabilities of most of the emerging farmers inthe Amajuba District to grow and become sustainable. Such impediments were found to arise from poor quality seeds, fertilizers and pesticides. Other constraints were narrated to emerge from poor farming methods and equipment as well as market dynamics and complexities as

instigated by failure to meet quality needs as well as difficulty to understand and respond to market dynamics. In the context of such empirical findings, it is recommended that emerging farmers and government must adopt a combination of agribusiness development and growth improvement strategies that include having Land Bank to offer low interest or even interest free loans to emerging farmers. It also suggested the essence for fast-tracking land reform Programmes, establishment of Agricultural Cooperatives for emerging farmers and improvement of the efficacy of agricultural extension programmes. But however as emerging farmers gain and improve their internal capabilities, the study also recommends that it is still critical that they adhere to the four stages for managing successful agribusiness development and growth that encompass agribusiness-market analysis, agribusiness ideation and conceptualisation, the establishment of farming structure and facilities and subsequently farm products’ commercialisation. Against that backdrop, future research can consider exploring the efficacy of agricultural quality management as a determinant for effective performance of emerging farmers’ agribusinesses in South Africa.