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An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa

Dissertation (MSc)--University of Pretoria, 2015.

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Other Authors: Kirsten, Johann F.
Format: Thesis
Language:English
Published: University of Pretoria 2016
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access_status_str Open Access
author2 Kirsten, Johann F.
author_browse Kirsten, Johann F.
author_facet Kirsten, Johann F.
collection Thesis
dc_rights_str_mv © 2016, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.
description Dissertation (MSc)--University of Pretoria, 2015.
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institution University of Pretoria (South Africa)
language English
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license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2016
publishDateRange 2016
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publisher University of Pretoria
publisherStr University of Pretoria
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spelling oai:repository.up.ac.za:2263/53492 An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa Kirsten, Johann F. fakudzebhekiwe@yahoo.com Ngqangweni, Simphiwe Syneon Fakudze, Bhekine Delisile UCTD communal farmers market opportunities market opportunities National Red Meat Development Programme (NRMDP) income generation commercialization market participation Natural and agricultural sciences theses SDG-01 SDG-01: No poverty Natural and agricultural sciences theses SDG-02 SDG-02: Zero hunger Natural and agricultural sciences theses SDG-08 SDG-08: Decent work and economic growth Natural and agricultural sciences theses SDG-09 SDG-09: Industry, innovation and infrastructure Dissertation (MSc)--University of Pretoria, 2015. There are substantial and unexploited market opportunities for communal farmers in the Eastern Cape, yet they own 3.3 million head of cattle. ComMark embarked on the Eastern Cape Red Meat Project in 2005 with the aim of increasing participation in formal markets by communal farmers. With the closure of ComMark in 2008, the National Agricultural Marketing Council (NAMC) was approached to take over the project since it had made a significant contribution to communal farmers through improved participation in formal markets. NAMC embraced the opportunity by accepting the proposal, and that was the birth of the National Red Meat Development Programme (NRMDP). NRMDP was established to improve income from animal husbandry and to create opportunities for communal farmers to commercialise, as well as participate in the formal markets. This research therefore 1) assesses the factors that contribute to improved market participation of communal farmers as a result of the NRMDP; 2) estimate household income of communal red meat farmers since the implementation of the NRMDP and 3) determine if the programme has a positive economic and social return. Using primary data obtained from 150 farmers, both purposively and randomly sampled in the Eastern Cape of South Africa, the analysis of the performance of the programme showed an increase in market participation over the years since the inception of the NRMDP. The results of the study suggested that incomes received by the farmers have increased, which means that the farmers are beginning to understand the requirements of the market, and they have increased their asset bases. From the analysis, it can be deduced that farmers with larger livestock herds are more likely to sell their livestock to formal markets than those with smaller herds. The off-take rate has increased after the implementation of the NRMDP from 5 % to an approximated average of 12.5 %. However, this rate is still far below the 25 % for commercial farmers. In determining the factors that influence household incomes of communal farmers, participating in the NRMDP was found to be statistically significant at 5 % level. It was observed that most of the farmers that participate in the NRMDP are aware of the requirements of the market, and that they produce high-value products and comply by delivering cattle of good quality. For that reason, the programme is essential in improving household incomes for communal farmers, and in consequence, improving rural livelihoods. A cost benefit analysis was also performed to test the viability and worth of the programme. The calculated NPV was found to be positive, suggesting that the public funds invested in the programme have a good social and economic return. Nevertheless, there are some hurdles that influence participation of communal farmers in high-value markets. To improve the impact of the programme, it was recommended that such programmes should be aligned with other initiatives implemented by government to maximise formal market participation and prevent duplication of similar programmes. It is envisaged that this alignment will enable farmers to be competitive in formal markets and enjoy the benefits of participating in high-value markets. es2025 Agricultural Economics, Extension and Rural Development MSc Unrestricted SDG-01: No poverty SDG-02: Zero hunger SDG-08: Decent work and economic growth SDG-09: Industry, innovation and infrastructure 2016-07-01T10:32:57Z 2016-07-01T10:32:57Z 2016-04-15 2015 Dissertation Fakudze, BD 2016, An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa, MSc Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/53492> A2016 http://hdl.handle.net/2263/53492 en © 2016, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria
spellingShingle UCTD
communal farmers
market opportunities
market opportunities
National Red Meat Development Programme (NRMDP)
income generation
commercialization
market participation
Natural and agricultural sciences theses SDG-01
SDG-01: No poverty
Natural and agricultural sciences theses SDG-02
SDG-02: Zero hunger
Natural and agricultural sciences theses SDG-08
SDG-08: Decent work and economic growth
Natural and agricultural sciences theses SDG-09
SDG-09: Industry, innovation and infrastructure
An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa
title An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa
title_full An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa
title_fullStr An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa
title_full_unstemmed An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa
title_short An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province South Africa
title_sort economic evaluation of the national red meat development programme in the eastern cape province south africa
topic UCTD
communal farmers
market opportunities
market opportunities
National Red Meat Development Programme (NRMDP)
income generation
commercialization
market participation
Natural and agricultural sciences theses SDG-01
SDG-01: No poverty
Natural and agricultural sciences theses SDG-02
SDG-02: Zero hunger
Natural and agricultural sciences theses SDG-08
SDG-08: Decent work and economic growth
Natural and agricultural sciences theses SDG-09
SDG-09: Industry, innovation and infrastructure
url http://hdl.handle.net/2263/53492