Competitiveness and welfare of smallholder vegetable farmers in Nkangala District, Mpumalanga Province, South Africa

Abstract

Smallholder vegetable gardening is critical for income, food security, and rural development in South Africa. However, competitiveness limits limit market access and business viability. Using Porter's Diamond Model, this study analysed the competitiveness and well-being of smallholder vegetable growers in Nkangala District, Mpumalanga Province. A mixed methods technique was used to poll 93 farmers across two towns. The data was analysed using descriptive statistics, reliability testing, principal component analysis, and stochastic profit frontier modelling. The data revealed that the typical farmer was 44 years old, with an equal gender distribution. The majority of farmers had a secondary or tertiary education, and 66.7% worked primarily in agriculture. According to principal component analysis, market factors had the biggest impact on competitiveness, accounting for 32% of the variance, followed by production factors at 19%. The stochastic profit frontier model assessed mean profit efficiency at 68%, implying a potential 32% increase in competitiveness. Age, education, group membership, off-farm income, market access, and extension services were all significant predictors of profit efficiency. Therefore, an integrated approach is necessary to increase the competitiveness of smallholder vegetable farmers, with an emphasis on productivity, risk reduction, market linkages, value addition, social capital, and institutional assistance. The study discovered that increasing competitiveness can improve the economic well-being and overall human development of smallholder vegetable growers by providing greater, sustained incomes. The primary policy recommendations are to improve market access, provide targeted extension services, and promote farmer organisation and collective action. These insights can help to shape evidence-based policies and programmes for the sector.