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New Institutional Arrangements for Rural Development: The Case of Local Woolgrowers' Associations in the Transkei Area, South Africa

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  • Marijke D'haese
  • Wim Verbeke
  • Guido Van Huylenbroeck
  • Johann Kirsten
  • Luc D'haese

Abstract

Until recently, smallholder farmers in the Transkei area had very limited access to a profitable market outlet for their wool. In response, the South African wool industry built shearing sheds, managed by a local association that sells directly to the brokers. This article investigates the effect of joint wool marketing through the shearing shed on the farmers' revenue from wool. A three-step regression model of the revenue from wool indicates that the farmers selling through the shearing shed obtain better financial results as compared to those who use alternative channels. This analysis shows how new institutional arrangements may contribute to economic development.

Suggested Citation

  • Marijke D'haese & Wim Verbeke & Guido Van Huylenbroeck & Johann Kirsten & Luc D'haese, 2005. "New Institutional Arrangements for Rural Development: The Case of Local Woolgrowers' Associations in the Transkei Area, South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1444-1466.
    • Handle: RePEc:taf:jdevst:v:41:y:2005:i:8:p:1444-1466
    DOI: 10.1080/00220380500187810
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    References listed on IDEAS

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    2. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, vol. 37(6), pages 700-709.
    3. Baeuml, Theresa & Möllers, Judith & Dufhues, Thomas & Wolz, Axel & Traikova, Diana, 2021. "What Motivates Commercial Small-Scale Farmers to Collaborate? Modelling the Intention to Join a Producer Organisation," 2021 Conference, August 17-31, 2021, Virtual 315034, International Association of Agricultural Economists.
    4. Mujawamariya, Gaudiose & D’Haese, Marijke & Speelman, Stijn, 2013. "Exploring double side-selling in cooperatives, case study of four coffee cooperatives in Rwanda," Food Policy, Elsevier, vol. 39(C), pages 72-83.

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