Unlocking Markets to Smallholders
Herman D. van Schalkwyk
Unlocking Markets to Smallholders

This book assesses the institutional, technical and market constraints as well as opportunities for smallholders, notably, emerging farmers in disadvantaged areas such as the former homelands of South Africa. Emerging farmers are previously disadvantaged black people who started or will start their business with the support of special government programs. Public support programs have been developed as part of the Black Economic Empowerment strategy of the South African government. These programs aim to improve the performance of emerging farmers. This requires, first and foremost, upgrading the emerging farmers skills by providing access to knowledge about agricultural and entrepreneurial practices. To become or to remain good farmers they also need access to suitable agricultural land and sufficient water for irrigation and for feeding their cattle. Finally, for emerging farmers to be engaged in viable farming operations, various factors need to be in place such as marketing and service institutions to give credit for agricultural inputs and investments; input markets for farm machinery, farm implements, fertilizers and quality seeds; and accessible output markets for their end products. This book develops a policy framework and potential institutional responses to unlock the relevant markets for smallholders.

Tabble of contents
1. Market access, poverty alleviation and socio-economic sustainability in South Africa
Ajuruchukwu Obi, Herman D. van Schalkwyk and Aad van Tilburg
1.1 Introduction
1.2 Problem context
1.3 Relevance of study to development in South Africa
1.4 Objectives, research questions and research methodology
1.5 Description of selected study areas
1.6 Data collection and data analysis
1.7 Organisation of the book
2. Strategies to improve smallholders’ market access
Aad van Tilburg and Herman D. van Schalkwyk
2.1 Introduction
2.2 Theoretical constructs on the analysis of market access
2.3 Bottlenecks for smallholder market access and the lessons learnt
2.4 Stakeholder strategies to improve smallholders’ market access
2.5 Conclusions
Appendix 2.1. Case study 1: a marketing design study
Appendix 2.2. Case study 2: sugarcane production by smallholders in KwaZulu, Natal
Appendix 2.3. Case study 3: TEMO Agri Services
Appendix 2.4. Case study 4: linking emerging farmers to the agribusiness sector – the case of the Golden Fleece project in the wool industry
Appendix 2.5. Case study 5: emerging rooibos farmers in the Heiveld community on the South Bokkeveld plateau
Appendix 2.6. Case study 6: mentorship alliance between South African farmers
3. Influence of institutional and technical factors on market choices of smallholder farmers in the Kat River Valley
Bridget Jari and Gavin Fraser
3.1 Introduction
3.2 Importance of smallholder farmers
3.3 The study area: Kat River Valley
3.4 Data collection and analysis
3.5 Empirical results
3.6 Conclusions and recommendations
4. Technical constraints to market access for crop and livestock farmers in Nkonkobe Municipality, Eastern Cape province
Ajuruchukwu Obi and Peter Pote
4.1 Introduction and problem context
4.2 The study area and research methodology
4.3 The variables
4.4 Results and discussion
4.5 Model adequacy
4.6 Conclusions and recommendations
5. Smallholders and livestock markets
Jan A. Groenewald and André Jooste
5.1 Historical context
5.2 Evolution of the beef sub-sector
5.3 Livestock keeping in tribal areas
5.4 Case studies
5.5 Strategies to improve livestock marketing
5.6 Conclusion
6. Unlocking markets to smallholder farmers: the potential role of contracting
Jan A. Groenewald, Jacobus Klopper and Herman D. van Schalkwyk
6.1 Introduction
6.2 Changes in agricultural marketing
6.3 Contracting as a means to overcome barriers to market entry
6.4 Experience with contracting: case studies
6.5 Recommendations
6.6 Conclusion
7. Food retailing and agricultural development
Lindie Stroebel and Herman D. van Schalkwyk
7.1 Introduction
7.2 Supermarket diffusion into Africa
7.3 Food retailing in South Africa
7.4 Developments in the South African food retailing environment
7.5 Impact of the rise of the supermarket industry on the agricultural sector
7.6 Conclusion
8. Unlocking credit markets
Jan A. Groenewald and Andries J. Jordaan
8.1 Introduction
8.2 The supply-led approach to credit
8.3 The demand-led approach
8.4 The Grameen Bank
8.5 Informal financial markets (microcredit)
8.6 Alternative finance sources in South Africa
8.7 Recommendations
8.8 Conclusion
9. Governance structures for supply chain management in the smallholder farming systems of South Africa
Ajuruchukwu Obi
9.1 Introduction and problem context
9.2 Methodology and focus areas
9.3 Needs and aspirations of chain participants
9.4 Resources and opportunities in the food supply chains
9.5 Distribution and retail outlets
9.6 Chain activities
9.7 Conclusion
10. Smallholder market access and governance in supply chains
Aad van Tilburg, Litha Magingxa, Emma V. Kambewa, Herman D. van Schalkwyk and Alemu Zeruhin Gudeta
10.1 Background
10.2 Framework of analysis
10.3 Case studies on domestic and international distribution
10.4 Reflection on the questions posed
10.5 Recommendations for institutional changes
11. Factors unlocking markets to smallholders: lessons, recommendations and stakeholders addressed
Aad Van Tilburg and Ajuruchukwu Obi
11.1 Objectives and research questions of the book
11.2 Results of the analysis in the chapters of the book
11.3 Recommendations in relation to stakeholders addressed
About the authors
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