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Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa
Thesis (MScAgric)--Stellenbosch University, 2023.
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Stellenbosch : Stellenbosch University
2023
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| _version_ | 1867614083796172800 |
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| access_status_str | Open Access |
| author | Mkhabela, Lonhlanhla Samantha |
| author2 | Punt, Cecilia |
| author_browse | Mkhabela, Lonhlanhla Samantha Punt, Cecilia |
| author_facet | Punt, Cecilia Mkhabela, Lonhlanhla Samantha |
| author_sort | Mkhabela, Lonhlanhla Samantha |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (MScAgric)--Stellenbosch University, 2023. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/127315 |
| institution | Stellenbosch University (South Africa) |
| language | en_ZA |
| last_indexed | 2026-06-10T12:46:23.902Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/127315 Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa Mkhabela, Lonhlanhla Samantha Punt, Cecilia Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics. Sugarcane industry -- Mpumalanga (South Africa) Sugar growth -- Mpumalanga (South Africa) Sugarcane farmers -- Mpumalanga (South Africa) Thesis (MScAgric)--Stellenbosch University, 2023. ENGLISH SUMMARY: The aim of the study was to determine whether cooperative membership improved technical efficiency for small-scale sugarcane farmers in the Nkomazi Local Municipality, in order to test the relevance of the motivation surrounding cooperative formation. The study analysed technical efficiency of small-scale sugarcane farming in order to identify the potential increase in sugarcane output using the available inputs and to determine if cooperative membership reduces technical inefficiency, in order to improve farming activities. 100 small-scale sugarcane farmers in the Nkomazi Local Municipality were selected and telephonically interviewed with regard to the 2018/19 sugarcane production season. The Stochastic Frontier Approach (SFA) was employed for data analysis. Results indicated that technical efficiency of cooperative member farmers ranged from 19.81 % to 93.10% with the mean technical efficiency of 70.77%. For non-member farmers’ technical efficiency ranged from 14.08% to 95.76% with a mean of 69.57%. From the empirical results it was concluded that there is no statistically significant difference in mean technical efficiency between cooperative member farmers and non-member farmers in the Nkomazi Local Municipality. The results from the Cobb-Douglas stochastic frontier production model confirmed that an increased use of inputs increases sugarcane output, because the coefficients of all the explanatory variables (farm size, permanent labour and fertiliser) were positive. Only farm size and permanent labour were found to be statistically significant. The results of the inefficiency sub-model showed that only farmers’ experience had a statistically significant (at 10%) contribution in increasing technical efficiency. Results further indicated that being a member of a producer cooperative reduces technical inefficiency in sugarcane production, but the estimated coefficient was not statistically significant. Hence, one can conclude that being a member of an agricultural cooperative in the study area does not serve as a beneficial factor to increase technical efficiency. This finding is in line with the work of Ortmann and King (2007a) who argue that agricultural cooperatives serving small-scale famers in South Africa did not contribute to improving agricultural development and the economic well-being of its members. However, it contrasts with work of Jaime and Salazar (2011) who stated that participating in cooperatives improves technical efficiency. This suggests that cooperatives’ quality and ability to respond to market failures should also be taken into account. Given that the experience of small-scale sugarcane farmers was found to increase technical efficiency, the study recommends that new entrants should learn from the older farmers before the latter exit, in order for them to gain practical farming knowledge. The study further recommends that those farmers that achieved high sugarcane output as well as high technical efficiencies, can be used to demonstrate the benefit of good agricultural practices in reducing the gap between actual and potential sugarcane output. The results show that there is an opportunity to increase sugarcane output with current input use and technology. Given the result that cooperative member farmers were not found to be significantly more technically efficient compared to non-members, cooperatives in the Nkomazi Local Municipality should carefully consider how they can improve their service to their members. AFRIKAANSE OPSOMMING: Die doel van die studie was om vas te stel of kooperatiewe lidmaatskap tegniese doeltreffendheid vir kleinskaalse suikerrietboere in die Nkomazi Plaaslike Munisipaliteit verbeter het, ten einde te toets of die motivering rondom kooperasievorming relevant is. Die studie het tegniese doeltreffendheid van kleinskaalse suikerrietboerdery ontleed ten einde die potensiele toename in suikerrietuitset met behulp van die beskikbare insette te identifiseer en om te bepaal of kooperatiewe lidmaatskap tegniese ondoeltreffendheid verminder, ten einde boerderyaktiwiteite te verbeter. 100 kleinskaalse suikerrietboere in die Nkomazi Plaaslike Munisipaliteit is gekies en telefonies ondervra met betrekking tot die 2018/19 suikerriet produksieseisoen. Die Stogastiese Grensbenadering (SFA) is vir data analise aangewend. Resultate het aangedui dat tegniese doeltreffendheid van kooperatiewe lidboere gewissel het van 19.81% tot 93.10% met die gemiddelde tegniese doeltreffendheid van 70.77%. Vir nie-lid boere het tegniese doeltreffendheid gewissel van 14.08% tot 95.76% met 'n gemiddeld van 69.57%. Uit die empiriese resultate is tot die gevolgtrekking gekom dat daar geen statisties betekenisvolle verskil in gemiddelde tegniese doeltreffendheid tussen kooperatiewe lid boere en nie-lid boere in die Nkomazi Plaaslike Munisipaliteit is nie. Die resultate van die Cobb-Douglas stogastiese grensproduksiemodel het bevestig dat 'n verhoogde gebruik van insette suikerrietuitset verhoog, omdat die koeffisiente van al die verklarende veranderlikes (plaasgrootte, permanente arbeid en kunsmis) positief was. Slegs plaasgrootte en permanente arbeid was statisties betekenisvol. Die resultate van die ondoeltreffendheid-submodel het getoon dat slegs boere se ervaring 'n statisties betekenisvolle (teen 10%) bydrae in die verhoging van tegniese doeltreffendheid gehad het. Resultate het verder aangedui dat om 'n lid van 'n produsentekooperasie te wees verminder tegniese ondoeltreffendheid in suikerrietproduksie, maar die beraamde koeffisient was nie statisties betekenisvol nie. Daarom kan 'n mens tot die gevolgtrekking kom dat lidmaatskap van 'n landboukooperasie in die studiegebied nie as 'n voordelige faktor dien om tegniese doeltreffendheid te verhoog nie. Hierdie bevinding is in ooreenstemming met die werk van Ortmann en King (2007a) wat aanvoer dat landboukooperasies wat kleinskaalse boere in Suid-Afrika bedien nie bygedra het tot die verbetering van landbou-ontwikkeling en die ekonomiese welstand van sy lede nie. Dit kontrasteer egter met werk van Jaime en Salazar (2011) wat gese het dat deelname aan kooperasies tegniese doeltreffendheid verbeter. Dit dui daarop dat kooperasies se kwaliteit en vermoe om op markmislukkings te reageer ook in ag geneem moet word. Aangesien gevind is dat die ondervinding van kleinskaalse suikerrietboere tegniese doeltreffendheid verhoog, beveel die studie aan dat nuwe toetreders by die ouer boere moet leer voor laasgenoemde uittree, sodat hulle praktiese boerderykennis kan opdoen. Die studie beveel verder aan dat daardie boere wat hoe suikerrietuitset sowel as hoe tegniese doeltreffendheid behaal het, ingespan kan word om die voordeel van goeie landboupraktyke te demonstreer om die gaping tussen werklike en potensiele suikerrietuitset te verklein. Die resultate toon dat daar 'n geleentheid is om suikerrietuitset te verhoog met huidige insetgebruik en tegnologie. Gegewe die gevolg dat daar nie gevind is dat kooperatiewe lede boere aansienlik meer tegnies doeltreffend is in vergelyking met nie-lede nie, moet kooperasies in die Nkomazi Plaaslike Munisipaliteit deeglik oorweeg hoe hulle hul diens aan hul lede kan verbeter. Masters 2023-03-06T10:50:57Z 2023-05-18T07:15:40Z 2023-03-06T10:50:57Z 2023-05-18T07:15:40Z 2023-03 Thesis http://hdl.handle.net/10019.1/127315 en_ZA Stellenbosch University xii, 99 pages : illustrations (some color), maps, includes annexures application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Sugarcane industry -- Mpumalanga (South Africa) Sugar growth -- Mpumalanga (South Africa) Sugarcane farmers -- Mpumalanga (South Africa) Mkhabela, Lonhlanhla Samantha Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa |
| title | Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa |
| title_full | Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa |
| title_fullStr | Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa |
| title_full_unstemmed | Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa |
| title_short | Comparison of technical efficiency between cooperative member and non-member farmers : a case of small-scale sugarcane farmers in the Nkomazi Local Municipality, Mpumalanga province, South Africa |
| title_sort | comparison of technical efficiency between cooperative member and non member farmers a case of small scale sugarcane farmers in the nkomazi local municipality mpumalanga province south africa |
| topic | Sugarcane industry -- Mpumalanga (South Africa) Sugar growth -- Mpumalanga (South Africa) Sugarcane farmers -- Mpumalanga (South Africa) |
| url | http://hdl.handle.net/10019.1/127315 |
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