The accessibility of smallholder farmers of South Africa in high value markets.
THE ACCESSIBILITY OF SMALLHOLDER FARMERS OF SOUTH AFRICA IN HIGH VALUE MARKETS.
1.0 INTRODUCTION
1.1 Background
Agricultural markets are promoted as a possible pathway to rural development, as they are seen as important for economic growth and addressing poverty (IFAD 2010). As agriculture and society develops, marketing becomes more important in South Africa and other developing nations in the world. In subsistence agriculture, a farmer will mainly be feeding himself and his family. The local community’s taste and requirements are well understood. As the populations of the cities increase, farmers have the added responsibility of feeding not only the rural market but also the growing distant urban markets (Monde, 2007).
According to Obi and Van Schalkwyk (2011), markets continue to be seen as the means for ensuring that smallholder producers of agricultural products are effectively integrated into the mainstream of national economies, especially in developing countries. Importantly, markets provide the opportunity for farm production to contribute to poverty reduction through the cash income realised from sales of farm produce. In turn, markets drive production as farmers strive to meet the demands of consumers and end-users in terms of quantity and quality. But their very existence, or how effectively they function, cannot be guaranteed in many developing countries. In South Africa, there is a certain urgency to address the real concern that, in spite of considerable investments into restructuring the smallholder agricultural sector since 1994 and directly tackle agrarian and land reform, poverty is still rife and there is the clear indication that much of this arises from farmers not being able to sell produce at a profit (Obi et al 2011). Unlocking markets for this group of farmers is therefore considered a crucial developmental necessity.
1.2 Problem Statement
Where poverty reduction is a central goal of economic policy, market access for smallholder
1.0 INTRODUCTION
1.1 Background
Agricultural markets are promoted as a possible pathway to rural development, as they are seen as important for economic growth and addressing poverty (IFAD 2010). As agriculture and society develops, marketing becomes more important in South Africa and other developing nations in the world. In subsistence agriculture, a farmer will mainly be feeding himself and his family. The local community’s taste and requirements are well understood. As the populations of the cities increase, farmers have the added responsibility of feeding not only the rural market but also the growing distant urban markets (Monde, 2007).
According to Obi and Van Schalkwyk (2011), markets continue to be seen as the means for ensuring that smallholder producers of agricultural products are effectively integrated into the mainstream of national economies, especially in developing countries. Importantly, markets provide the opportunity for farm production to contribute to poverty reduction through the cash income realised from sales of farm produce. In turn, markets drive production as farmers strive to meet the demands of consumers and end-users in terms of quantity and quality. But their very existence, or how effectively they function, cannot be guaranteed in many developing countries. In South Africa, there is a certain urgency to address the real concern that, in spite of considerable investments into restructuring the smallholder agricultural sector since 1994 and directly tackle agrarian and land reform, poverty is still rife and there is the clear indication that much of this arises from farmers not being able to sell produce at a profit (Obi et al 2011). Unlocking markets for this group of farmers is therefore considered a crucial developmental necessity.
1.2 Problem Statement
Where poverty reduction is a central goal of economic policy, market access for smallholder
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