IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i6p2241-d1353102.html
   My bibliography  Save this article

The Role of Cooperatives in Improving Smallholder Participation in Agri-Food Value Chains: A Case Study of One Local Municipality in Eastern Cape, South Africa

Author

Listed:
  • Mzuyanda Christian

    (School of Agricultural Sciences, University of Mpumalanga, Cnr R40 and D725 Roads, Mbombela 1200, South Africa)

  • Ajuruchukwu Obi

    (College of Agriculture and Environmental Sciences, University of South Africa, Private Bag X7, Florida Campus, Johannesburg 1709, South Africa)

  • Siphe Zantsi

    (Agricultural Research Council-Central Office, Economic Analysis Unit, 1134 Park Street, Hatfield, Pretoria 0028, South Africa)

  • Lelethu Mdoda

    (Discipline of Agricultural Economics, School of Agriculture, Earth and Environmental Sciences, University of Kwa-Zulu-Natal, Private Bag X01 Scottsville, Pietermaritzburg 3209, South Africa)

  • Phiwe Jiba

    (Department of Agricultural Economics and Extension, North-West University, Mmabatho 2790, South Africa)

Abstract

Increases in demand for food, product development, and agribusiness growth provide new opportunities for smallholder farmers in the developing world. Yet, the smallholder farming sector is still confronted by numerous constraints, including low quality and lower levels of produce. Agricultural cooperatives and other farmer organisations have been identified as crucial vehicles to link smallholder farmers with the evolving food systems. However, little is known about their contribution to enhancing their members’ participation in sustainable agri-food chains. This paper aims to explore the effectiveness of agricultural cooperatives in empowering smallholder farmers to participate in sustainable agri-food chains in Eastern Cape, South Africa. In achieving this, the study adopted a multi-stratified sampling procedure to select 119 cooperative members in the study area. Data were analysed using descriptive statistics and a binary regression model. Our findings revealed that the majority (70%) of cooperatives were participating in crop production. Most (75%) of the cooperative members were old, with a mean average of 52 years. Additionally, the majority (93%) of members reported that agricultural cooperatives contributed positively to their livelihoods. The results of the probit model established that quality, quantity, level of education, and access to information influenced the level of participation in storage, processing, and distribution levels at different levels of significance. Although the findings of this research reported a positive contribution of cooperatives to their members, the study identifies a greater need for cooperatives to be inclusive of young people and improve government support. Also, the study recommends a blended financing model that will cater to smallholder farmers who do not have collateral. Finally, the study recommends that the current extension and advisory services be tailored to cater to the training needs of smallholder farmers.

Suggested Citation

  • Mzuyanda Christian & Ajuruchukwu Obi & Siphe Zantsi & Lelethu Mdoda & Phiwe Jiba, 2024. "The Role of Cooperatives in Improving Smallholder Participation in Agri-Food Value Chains: A Case Study of One Local Municipality in Eastern Cape, South Africa," Sustainability, MDPI, vol. 16(6), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2241-:d:1353102
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/6/2241/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/6/2241/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lelethu Mdoda & Ajuruchukwu Obi & Nthabeleng Tamako & Denver Naidoo & Raesetse Baloyi, 2023. "Resource Use Efficiency of Potato Production among Smallholder Irrigated Farmers in the Eastern Cape Province of South Africa," Sustainability, MDPI, vol. 15(19), pages 1-23, October.
    2. Ortmann, Gerald F. & King, Robert P., 2007. "Agricultural Cooperatives I: History, Theory and Problems," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-29, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thembi Xaba & Nyankomo Marwa & Babita Mathur-Helm, 2018. "Efficiency and Profitability Analysis of Agricultural Cooperatives in Mpumalanga, South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 1-10.
    2. Bagchi, Niladri Sekhar & Mishra, Pulak & Behera, Bhagirath, 2021. "Value chain development for linking land-constrained farmers to markets: Experience from two selected villages of West Bengal, India," Land Use Policy, Elsevier, vol. 104(C).
    3. Isaac Zúñiga Aguilar, 2022. "Neuroeconomics in Cooperatives: Hierarchy of Emotional Patterns in the Collective Decision-Making Process for Sustainable Development," Sustainability, MDPI, vol. 14(12), pages 1-31, June.
    4. Pawlak Karolina & Kołodziejczak Małgorzata & Xie Yumei, 2019. "Horizontal Integration in the Agricultural Sector as a Factor Increasing Its Competitiveness – Experience from Poland," Eastern European Countryside, Sciendo, vol. 25(1), pages 195-232, December.
    5. Poizat, Axelle & Duvaleix-Treguer, Sabine & Bonnet-Beaugrand, Florence, 2018. "Vertical integration and health control measures in the French young bull sector," Working Papers 273145, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    6. Chibanda, M. & Ortmann, Gerald F. & Lyne, Michael C., 2009. "Institutional and governance factors influencing the performance of selected smallholder agricultural cooperatives in KwaZulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-14, September.
    7. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    8. Margitta Minah, 2022. "What is the influence of government programs on farmer organizations and their impacts? Evidence from Zambia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 29-53, March.
    9. Soviadan, Mawussi Kossivi & Enete, Anselm Anibueze & Okoye, Chukwuemeka Uzoma & Kubik, Zaneta, 2023. "Determinants of Farmers' Participation in the Agricultural Sector Support Project for the Adoption of Improved Technology in Traditional Poultry Farming: Evidence from Rural Togo," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 116(2), pages 87-108.
    10. Nowak, Piotr & GORLACH, KRZYSZTOF, 2015. "Rolnicy I Spółdzielczość W Polsce: Stary Czy Nowy Ruch Społeczny?," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 1(166.1).
    11. Liang, Q.X. & Hendrikse, G.W.J., 2012. "Cooperative CEO Identity and Efficient Governance: Member or Outside CEO?," ERIM Report Series Research in Management ERS-2012-019-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    12. Nazik Beishenaly & Frédéric Dufays, 2023. "Entrepreneurial ecosystem for cooperatives: The case of Kyrgyz agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1173-1198, December.
    13. Nguyen Nguyen, 2017. "Farmers’ Poverty Eradication Policies and Resolution of Developing Countries," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 10(2), pages 1-57, March.
    14. Alsemgeest, L. & Smit, A.v.A., 2012. "Customer satisfaction of agricultural business units: The case of a major South African agricultural business," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 51(1), February.
    15. Dobbelstein Thomas & Mason Roger B. & Kamwendo Andrew, 2020. "Consumer Perceptions of Critical Success Factors for Small Local Consumer Brands," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 65(2), pages 65-89, August.
    16. S. Marimuthu & C. Vanitha & U. Surendran & Salah El-Hendawy & Mohamed A. Mattar, 2024. "Conception of Improved Blackgram ( Vigna mungo L.) Production Technology and its Propagation among Farmers for the Development of a Sustainable Seeds Production Strategy," Sustainability, MDPI, vol. 16(11), pages 1-16, June.
    17. Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A Theory of Agricultural Marketing Cooperatives with Direct selling," Working Papers halshs-00906894, HAL.
    18. Zahir Dossa, 2012. "Cooperatives: A Development Strategy? An Analysis of Argan Oil Cooperatives in Southwest Morocco," Euricse Working Papers 1229, Euricse (European Research Institute on Cooperative and Social Enterprises).
    19. Ševarlić, Miladin M. & Nikolić, Marija M., 2013. "Agricultural Cooperatives – Examples Of Good Practise In The World And Serbia," 50th Anniversary Seminar, Agriculture and Rural Development -Challenges of Transition and Integration Processes, September 27, 2013 161799, University of Belgrade, Department of Agricultural Economics, Faculty of Agriculture.
    20. repec:ags:ijag24:345074 is not listed on IDEAS
    21. Amiquero, K. (Katty) Sanchez & Wubben, E.F.M. (Emiel) & van Dam, Y.K. (Ynte) & Trienekens, J.H. (Jacques), 2023. "Success and failure factors in agricultural cooperatives," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 14(01), January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2241-:d:1353102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.