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2 South Africa's Agricultural Sector David Neves and Cyriaque Hakizimana Faculty of Economic and Management Sciences Research Report 47 Space, Markets and Employment in Agricultural Development: South Africa Country Report David Neves and Cyriaque Hakizimana Published by the Institute for Poverty, Land and Agrarian Studies, Faculty of Economic and Management Sciences, University of the Western Cape, Private Bag X17, Bellville 7535, Cape Town, South Africa Tel: +27 21 959 3733 Fax: +27 21 959 3732 Email: [email protected] Institute for Poverty, Land and Agrarian Studies Research Report no. 47 June 2015 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior permission from the publisher or the authors. Copy Editing and Proofreading: Liz Sparg Series Editor: Rebecca Pointer Photographs: David Neves Typeset in Frutiger Thanks to the UK’s Department for International Development (DfID) and the Economic and Social Research Council’s (ESRC) Growth Research Programme/ ESRC grant ES/J009261/1 Contents List of tables ............................................................................................................................................................... ii List of figures ............................................................................................................................................................iii Acronyms and abbreviations.............................................................................................................................. iv 1 Introduction ...................................................................................................................................................... 1 2 South Africa’s agricultural sector ........................................................................................................... 5 3 The study site .................................................................................................................................................18 4 Presenting the case studies ..................................................................................................................... 28 5 On-farm employment ............................................................................................................................... 69 6 Upstream (input) production networks: Employment and livelihoods ................................ 83 7 Downstream (output) market linkages: Employment and livelihoods ................................ 90 8 The rural non-farm economy: Employment and livelihoods ................................................... 108 9 Conclusion .................................................................................................................................................... 128 References ............................................................................................................................................................... 129 Appendices............................................................................................................................................................... 133 i List of tables Table 1: Summary of area, population and population density for Weenen subplaces ............ 19 Table 2: Racial distribution within Weenen ............................................................................................... 19 Table 3: Employment status (percentage of people) summarised for geographic units .......... 19 Table 4: Use of fertilizer by farmers in the Weenen district ............................................................... 37 Table 5: Use of Omnia Fertilizer by farmers in the Weenen district ................................................ 38 Table 6: Use of Kynoch Fertilizer by farmers in the Weenen district .............................................. 38 Table 7: Use of fuel and agrochemicals by farmers in the Weenen district .................................. 39 Table 8: Use of Vryheid Petroleum by farmers in the Weenen district .......................................... 39 Table 9: Use of AFGRI agrochemicals by farmers in the Weenen district .......................................41 Table 10: Use of FAC by farmers in the Weenen district ....................................................................... 42 Table 11: Use of Weenen Agri by farmers in the Weenen district ...................................................... 44 Table 12: Use of Imbewu Agricultural Supply Store by farmers in the Weenen district .......... 45 Table 13: Use of Umbumbano Co-op by farmers in the Weenen district .......................................46 Table 14: Use of seed and seedlings by farmers in the Weenen district ......................................... 47 Table 15: Use of Pannar Seed by farmers in the Weenen district ...................................................... 47 Table 16: Use of SPC seedlings by farmers in the Weenen district ...................................................49 Table 17: Use of FCI seed potatoes by farmers in the Weenen district ............................................ 50 Table 18: Use of Premium Crops seedlings by farmers in the Weenen district ............................ 51 Table 19: Use of mechanical equipment and repairs by farmers in the Weenen district ........ 52 Table 20: Use of Estcourt Mechanical Services by farmers in the Weenen district ................... 53 Table 21: Use of Mascor by farmers in the Weenen district ................................................................ 54 Table 22: Use of Motorquip Estcourt by farmers in the Weenen district....................................... 54 Table 23: Use of independent mechanics by farmers in the Weenen district .............................. 55 Table 24: Use of Papadopoulos Trading by farmers in the Weenen district ................................ 60 Table 24: Annual income in rands at 2000 prices: Agricultural and non-agricultural households . ............................................................................................................................................................................. 70 Table 25: Schematic table of employment categories within Weenen (farm and RNFE combined) ............................................................................................................................................................................ 118 ii List of figures Figure 1: Map of Umtshezi municipality .......................................................................................................18 Figure 2: Map showing Weenen and environs, overlaid with geographic units used in the 2011 census ................................................................................................................................................................ 22 Figure 3: Detailed map showing Weenen and environs, overlaid with geographic units used in the 2011 census .................................................................................................................................................. 22 Figure 4: Farmer Mr DF’s links to second- and third- level tiers ....................................................... 28 Figure 5: Farmer Mr MT’s links to second- and third- level tiers ...................................................... 30 Figure 6: Farmer Mr SGF’s links to second- and third- level tiers ..................................................... 32 Figure 7: Farmer Mr RS’s links to second- and third- level tiers ........................................................ 33 Figure 8: Farmer Mr LS’s links to second- and third- level tiers ........................................................ 35 Figure 9: Farmer Mr MN’s links to second- and third- level tiers ..................................................... 36 Figure 10: Regional map showing Weenen and surrounding towns ................................................ 42 Figure 11: Map of linkages from large-scale commercial farmers to tier 2 input suppliers for cabbages .................................................................................................................................................................. 139 Figure 12: Map of linkages from large-scale commercial farmers to tiers 2 and tier 3 input suppliers for cabbages .................................................................................................................................................................... 140 Figure 13: Map of linkages for large-scale commercial farmers to tiers 2 and 3 (and beyond) input suppliers for cabbages ............................................................................................................................ 141 Figure 14: Map of linkages from SSFs to tier 2 input suppliers for cabbages ..............................142 Figure 15: Map of linkages for SSFs to tiers 2 and 3 input suppliers for cabbages ....................143 Figure 16: Map of linkages from small-scale commercial farmers to tiers 1, 2, 3 (and beyond) input suppliers for cabbages ........................................................................................................................... 144 iii Acronyms and abbreviations BEE Black Economic Empowerment EHU household enterprise unit FAC Farmers Agri-Care FPMs fresh produce markets GMO genetically modified organism KZN KwaZulu-Natal NSDP National Spatial Development Plan OEM original equipment manufacturer PBR plant breeders’ rights R&D research and development RGLT regional growth
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