Browsing by Author "Thomas, Benisiu"

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    The development of the horticultural industry in Namibia : an assessment of the determinants of the global market competitiveness of table grape production
    (Stellenbosch : Stellenbosch University, 2007-12) Thomas, Benisiu; Vink, Nick; Stellenbosch University. Faculty of Agrisciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: The declaration of Namibia’s independence from South Africa in 1990 has seen the Namibian government aim to plan and implement development programmes that enhance a growing agricultural sector. The new government is facing challenges regarding the addressing of inequalities of income and the allocation and distribution of resources, which have resulted in implementation of the land reform programmes. On the international front, Namibia is a member country of various trade arrangements, such as the WTO, the SADC and SACU. The main driving force behind Namibia’s joining the international communities chiefly has been market access and trade policy reforms. The country’s agricultural sector, in particular the horticultural industry, in regards to table grape production, has been significantly affected by both domestic and regional policies, as well as by the WTO rules. The aim of this study is to determine the environmental factors that create a competitive advantage for the Namibian table grape industry in the international market. A detailed supply-chain analysis, augmented by Porter’s ‘diamond’ model, is used in this study to assess the determinants of the competitiveness of fresh table grapes. Interviews were conducted in informal, semi-structured questions. The questionnaires were mailed to several producers within the table grape-growing industry. Secondary information was obtained from reports, articles and research publications, among other sources. An expert assessment was used to verify information based on the reference methods. Consultations took place in the form of office visits and, in some cases, telephone interviews were held with different experts. The finding of the study shows that Namibia can supply the European markets during the northern hemisphere off-season with quality fresh table grapes. However, industry growth in the European Union (EU) market is constrained by limited free import quotas and high tariffs, specifically as regards seeded fresh table grapes, which are not exempt from such duties. Such constraints are in place despite Namibia’s meeting of international set quality standards, such as EUREPGAP. Moreover, there is potential for increasing supplies to the regional and Asian markets as well as the US market albeit to the lesser extent. Finally, Namibian fresh table grapes profitability is significantly affected by the high production and transaction costs incurred, as well as by the decline in business and the depreciation of the US Dollar against the Namibian Dollar. The study makes the general recommendation that producers should significantly reduce their transaction costs within the chain, by means of vertical co-ordination and integration.
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    The development of vegetable enterprises in the presence of transaction costs among farmers in Omusati Region of Namibia : an assessment
    (Elsevier, 2020) Vink, Nick; Thomas, Benisiu
    The paper investigates how transaction characteristics influence the development of vegetable enterprises among smallholder farmers in north-central Namibia. As transaction costs are difficult to measure the theoretical framework of analysis is based on transaction costs economics of new institutional economics. The results revealed that the spot market-based governance structure was the most preferred market arrangements by smallholders farmers in north-central Namibia because vegetable farmers struggle to meet the quality and quantity standards as required by the contractors market-based and commission market-based arrangements. The results also suggest that due to incomplete information, farmers and market agents suffer from high transaction costs. Skewed information distribution between farmers and marketing agents leads to slow development of vegetable enterprises. The study recommends that information shared to farmers must be packaged in an adequate manner to minimise transaction costs in the vegetable value chain.
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    Dynamics of institutional arrangements for small-scale vegetable farmers in Namibia: An analysis of the market, state and community institutions
    (Stellenbosch : Stellenbosch University, 2020-12) Thomas, Benisiu; Vink, N.; Kirsten, Johann; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY : In developing countries, especially in Africa, the commercialisation of agriculture has proven to be a means of increasing the income of farm households and productivity, resulting in poverty reduction at the household level. The principal research question addressed by this study was why it would make sense for the government to invest in services for small-scale fruit or vegetable farmers if these farmers could not increase production because of a lack of market access unless they could make a profit, which would probably imply heavy subsidisation of marketing infrastructures by taxpayers. A vegetable industry development case study was conducted in north-central Namibia. A Probit model was used to determine the factors that influence farmers to supply to the formal markets. The model results indicated that ownership of a vehicle and distance from farm to water source were statistically significant determinants of a farmer’s decision to participate in the commercialisation of high-value crops at p=0.009 and p=0.073 respectively. In addition, the results indicate that water rights are not clearly defined, and there is no land market and limited access to credit for the farmers. Moreover, a transaction cost analysis demonstrated that small-scale high-value crop production in the study area is experiencing high transaction costs that make the vegetable industry to be globally less competitive. The principal reason for high transaction costs is that the commercialisation of vegetables is constrained by information asymmetries or principal-agent problems among actors in the value chain, resulting in the failure of the market, state, and community institutional arrangements. The study introduced a new approach incorporating insights from transaction cost economics in exploring the interrelationship of the market, state, and community institutions in agricultural development in developing countries to understand the influence of transaction costs on economic performance. The model introduces a public-private partnership as a policy instrument linking small-scale farmers to input and output markets through contract production. The model identifies and minimises transaction costs among value chain actors, to overcome the challenges of the market, state, and community institutions. The study concluded that poor implementation of agricultural development initiatives as introduced by the state or the private sector (the market) and cultural embeddedness may limit agricultural development as community values, norms or beliefs take long to adjust to external ideas or technologies due to inadequate information in developing countries. The study recommends that there is a need for policy intervention that addresses water rights and improved access to credit as well as encouraging production and marketing cooperative to reduce costs of accessing input and output markets. An amendment of the Communal Land Reform Act No. 5 of 2002 would enable the introduction of land markets and rentals in communal areas of Namibia enable farmers to use their land as collateral to obtain credit from financial institutions. Amendments to the Communal Land Reform Act should also specify how to protect vulnerable and poor people such as women and the youth in communities and to ensure that land rights are available as a social safety net.