Masters Degrees (Agricultural Economics)

Permanent URI for this collection

https://scholar.sun.ac.za/handle/10019.1/515

Browse

Browsing Masters Degrees (Agricultural Economics) by browse.metadata.advisor "Greyling, Jan"

Now showing 1 - 5 of 5
  • Thumbnail Image
    Item
    Comparing hail risk management strategies through whole-farm multi-period stochastic budgeting for avocado production in South Africa
    (Stellenbosch : Stellenbosch University, 2020-03) Steyn, Theunis Christian; Hoffmann, Willem H.; Greyling, Jan; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: This dissertation compares hail risk management strategies for avocado production in South Africa. Avocado producers in South Africa aim to produce fruit of high quality suited for the export market to earn a price premium. To manage abiotic stress factors, which are seen as production risks, producers implement risk management strategies. The main abiotic stress factor investigated in this study is hail damage. Three strategies that can be used by producers are evaluated and compared from an economic point of view. The three strategies are: erecting a fixed shade netting construction over orchards, purchasing hail insurance, and self-insurance. The self-insurance strategy consists of producers carrying the risk within their enterprise and not implementing any risk management strategy. Shade netting alters the microclimate and can lead to secondary benefits, such as increased quality of fruit. To evaluate the risk management strategies, a whole-farm multi-period stochastic budget model is used to represent a typical avocado farm. The key output variables (KOVs) used in the stochastic budget model are yield, quality, price, hail insurance premiums and hail risk. These KOVs are used as they have been identified as the variables that will most likely influence the financial performance of the avocado farm system when choosing a risk management strategy. Empirical data and methods proposed by Richardson (2000) are used to simulate multivariate empirical probability distributions for the KOVs. Hail risk is an exception and is modelled by using a Bernoulli discrete probability distribution in combination with a triangular probability distribution. The stochastic budget model runs 500 iterations of net present values (NPVs) for each risk management strategy using Simetar. The 500 NPVs of the three risk management strategies are then converted into cumulative distribution functions (CDFs). Stochastic dominance is used to compare each strategy. The results of this study indicate that, as a risk management strategy only, shade nets are not economically viable and hail insurance is seen as the less risky strategy compared to self-insurance. Using the empirical data of a typical producer with an expected yield of 13.6 ton per hectare (average yield potential), shade nets will not be justifiable, even with an increase in the quality of the fruit. Self-insurance and hail insurance are stochastically dominant of first order over shade nets for all scenarios. Furthermore, self-insurance does not dominate hail insurance in terms of first- or second-order stochastic dominance in any scenario, meaning that it is a riskier management strategy. The simulated results based on empirical data from a top producer with an expected yield of 18.4 ton per hectare (high yield potential) show that shade nets are stochastically dominant (of first order) over all other strategies when there is an increased quality of fruit without a decline in yield. If there is no increase in quality of fruit cultivated under shade nets, hail insurance and self-insurance will have first-degree stochastic dominance over the shade net strategy. As with the typical producer, there is no scenario where self-insurance is stochastically dominant (of first or second order) over hail insurance. It is possible for hail insurance to have second-degree stochastic dominance over self-insurance.
  • Thumbnail Image
    Item
    A discrete-time survival analysis of smallholder contract farmers in Malawi
    (Stellenbosch : Stellenbosch University, 2023-04) Pretorius, Hendrik Stephanus; Greyling, Jan; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: This study investigates the durability and dynamics of smallholder participation in contract farming arrangements (CFAs) in Malawi, which are seen as a potential way to increase smallholder commercialisation and participation in modern high-value markets. The study finds that while CFA participation can offer benefits, there is considerable variation in participation durations, and high rates of smallholder exit. Factors related to productive resources and farmer performance have a large influence on the likelihood and timing of exit. Policymakers should have a realistic view of what can be expected from CFAs and consider differentiated policy responses for farmers likely to sustain participation versus those at high risk of exit. Developing farmers' capacities, particularly those factors that raise the propensity for sustained participation, should be prioritized to improve smallholder commercialisation through more durable modern-market participation. Furthermore, efforts should be made to further develop Malawi’s non-physical resources.
  • Thumbnail Image
    Item
    Factors influencing the degree of smallholder farmer’s market participation : the case study of uMkhanyakude and Zululand districts, KwaZulu Natal Province of South Africa
    (Stellenbosch : Stellenbosch University, 2021-03) Mashaya, Rufaro Talent; Greyling, Jan; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY : This study uses a multiple regression model to analyse the factors affecting the level of market participation of smallholder farmers in the two districts, uMkhanyakude, and Zululand, in the KwaZulu Natal province of South Africa. The data was collected from a total of 229 commercially orientated smallholder farms from the two districts using a questionnaire-based household survey. Multi-stage sampling was used in selecting the smallholder farmers, whereas purposive sampling was used at provincial and district level to select the study area. The study revealed that participants have a low crop market participation of 33 percent, a very low livestock market participation of nine percent, and overall market participation of 39 percent. Channels for marketing were investigated in relation to market participation. Marketing channels for livestock had no significant difference and effect on the level of market participation. For crops, marketing channels had a substantial difference given a statistically significant effect. The smallholder farmers who mostly sold their output to their neighbour and/or local traders had a lower market participation rate compared to those who sold their crop products to a cooperative. It was found that age and field size had a statistically significant impact on the level of market participation. Age exhibited a negative relationship with market participation and field size had a positive relationship with market participation. Income was found to have a statistically insignificant impact on market participation. Based on the findings highlighted above, it is recommended that effective policy interventions that create and sustain an enabling environment that encourages greater market participation should be put in place. Since market participation in the area is influenced by cooperative membership, age and field size, efforts should be directed to increasing land portions or sizes for younger smallholder farmers. Policies that encourage the establishment of cooperatives should also be put in place.
  • Thumbnail Image
    Item
    Farm-level barriers to the adoption of precision agriculture technologies in the South African maize industry : variable rate application, section control, and guidance
    (Stellenbosch : Stellenbosch University, 2021-03) Blaker, Timothy Nigel; Greyling, Jan; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY : This research focuses on the farm level barriers to precision agriculture, specifically guidance/auto-steer, section control, and variable-rate application. The research was focused on the summer rainfall maize producing areas of South Africa. The first objective was to identify adoption rates of PA technology in South Africa, the second objective of the study was to identify the farm level barriers, the third was to quantify the perceived benefits of these three forms of precision agriculture (PA) and the fourth was to establish how farmers manage their machine data and view privacy considerations. In response to the farm problem as the continual cost-price squeeze, farmers must continually strive to increase their productivity and reduce their input costs. A key component of the response by maize farmers to counteract the farm problem is the adoption of PA technologies. In my sample, the adoption rates were found to be at 65% for guidance, 51% for section control, and 49% for variable-rate application. This compares favourably to the international literature which estimates the aggregate adoption of these technologies at between 29% for VRA and 59% for guidance in maize production. However, the South African adoption rates still leave ample room for improvement especially amongst smaller farms that were underrepresented in this study. Concerning the drivers of adoption this study had inconclusive and, in some instances, contradictory results (e.g., age and education) relative to the international literature. However, I found that farmers who use PA technologies have the perception that the latter technology has clear benefits for productivity and efficiency. Concerning the farmers not using PA, responses were mixed to the extent that it created the impression that this subset of farmers is uninformed about the extent of the benefits and for some farmers the suitability of the technology given the computer literacy of their operators. The results from the surveys indicate that the perceived benefits of PA technology outweigh that of the farm-level barriers. Farmers should depreciate their capital cost over five to ten years, in terms of feasibility, instead of looking at the initial capital outlay. It is difficult to measure the efficiency improvements in terms of increased productivity and reduced driver fatigue, these variables although intangible, do play a big role in equipment management.
  • Thumbnail Image
    Item
    Potential of Amaranthus in improving urban farmers’ livelihoods in Kampala
    (Stellenbosch : Stellenbosch University, 2021-03) Akoth, Brenda; Greyling, Jan; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY : During the last couple of decades, the importance of urban agriculture has increased. There is, however, substantial knowledge gap on agriculture as practised in urban spaces. This study investigates the potentials of amaranthus to improve urban livelihood in Kampala. Amaranthus is an under-valued crop, faces low participation, and the urban farmers do not fully exploit its potential opportunities in Kampala, and yet the awareness of the health benefits has contributed to the increase in the consumption in Kampala. Previous studies on Uganda have focused on promoting grain amaranthus production as a way to improve food security, nutrition and household income. Few other studies gave an insight on cultivation in urban areas, particularly in utilising small spaces. The literature is, however, still sparse and mostly focussed on production in general and did not focus on urban agriculture specifically. The study was conducted in Kampala across four divisions among 120 urban growing households and 82 amaranthus growing households. Four key informant interviews were also obtained from the institutional structures involved/governing urban farming in Kampala. Sustainable Livelihoods Approach (SLA) were used to assess the potential of growing amaranthus in enhancing household livelihoods. Contrary to other findings on urban farming, it was observed in this study that more male farmers are engaging in amaranthus growing than female, this could be a new trend. Similarly, more maleheaded households are seen participating compared to female-headed households. It was also observed that female farmers took up growing amaranthus for own consumption while male farmers were mainly doing it for income. Amaranthus had the least opportunity cost compared to other crops thus a more competitive crop compared to other crops. The study concluded that amaranthus has the potential to enhance household livelihoods since household can obtain their desired outcome like more food supply, income and health benefits from the production of this crop. However, this could be improved through more favourable ordinances and policies towards urban farming. Various potentials were observed in this study, i.e. economic potentials, incomegenerating potentials, employment potentials and social impacts. Therefore, accept the hypothesis that growing amaranthus could enhance urban farmers household livelihood.