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Downloads/Vc/Sustainable Livelihoods.Pdf Assessment of sources of livelihoods and opportunities to improve the contribution of farming within available food chains. Submitted By Mbusi Nontembeko 200601445 Project in Agricultural Economics Submitted in Fulfilment for the Degree of Masters in Agricultural Economics Department of Agricultural Economics and Extension School of Agriculture and Agribusiness Faculty of Science and Agriculture SUPERVISOR: PROFESSOR A. OBI January 2013 i DECLARATION I, Nontembeko Mbusi, hereby declare that this dissertation is my own original work and that it has not been submitted, and will not be presented at any other University for a similar or any other degree award. To the best of my knowledge, the works of other scholars referred to here have been duly acknowledged. Signature …………………………………………… Nontembeko Mbusi i ACKNOWLEDGEMENT Special thanks go to the WRC for the financial support as well as providing the environment for accessing the vital resources for producing the required documentation for this dissertation. This study forms part of a Water Research Commission (WRC) project entitled: “Water use productivity associated with appropriate entrepreneurial development paths in the transition from homestead food gardening to smallholder irrigation crop farming in the Eastern Cape Province of South Africa, K5/2178//4”. It must be mentioned that some of the information in this dissertation formed part of the specific deliverables already submitted to WRC during 2012. The contributions of the project‟s reference group members are gratefully acknowledged. I wish to express my sincere gratitude to everyone who contributed towards the success of this thesis. It would not have been possible without your input, time and support; I really appreciate your help. Professor A. Obi, my supervisor, provided mentorship, support, and motivation throughout my programme. It would have been difficult to accomplish this study without his help. I thank him most sincerely. To all the persons who provided information for this thesis. I am thankful. Your contribution made all these possible. I was assisted for the data collection by Douglas Kibirige, Akhona Zweni and Lungile Gidi to whom I am grateful. Last but not the least, I would like to thank you, GOD ALMIGHTY for leading me through this, You had it all planned and let your glory be seen through this work. ii Abstract Official statistics suggest that as many as 40% to 60% of people in South Africa are living in poverty, and the 15% poorest are in a desperate struggle for survival. Since 1994, Government has been making an effort to help smallholder agriculture through numerous programmes, including those that address land ownership and provide credit and grants for farms and households, but very little change has taken place. Understanding the sources of livelihood and opportunities to improve the contribution of farming within available food chains is therefore an important practical need. The study investigated sources of livelihood and mapped the livelihoods profile of the farming households in parts of the Eastern Cape. The study was conducted in the Alice and Peddie communities in the Amathole district municipality. A set of structured questionnaires were used to interview the sample of 80 farming households selected through a random process within two irrigation schemes and communities that were selected purposively in line with the focus of the larger project on which this study is based. The resulting data were analyzed by means of descriptive statistics and multiple linear regression. The descriptive results indicated that members of most rural households were old, married, uneducated and unemployed. Farming was primary livelihood strategy employed in these areas. Rural households were also dependent on remittances, social grants and pension funds because the farming strategy could not meet all their household needs. The major crops that were grown for income and food security to sustain their livelihoods included maize, potatoes, onions and butternut. Factors that had significant influences on outcomes were extension services, grants, pension and remittances, land productivity, type of irrigation system, market accessibility, output price difference and value adding. The available opportunities were land productivity, irrigation facilities, government or NGO programmes and working as a group. For improved livelihood of rural communities in Alice and Peddie, government needs to strengthen agricultural activities and equip farmers with market information, improve their access to irrigation schemes, provide training on value adding and also improve access to extension services. iii Keywords: livelihood strategies, outcomes, poverty, farming, employment TABLE OF CONTENTS DECLARATION ..................................................................................................................................... i ACKNOWLEDGEMENT ...................................................................................................................... ii ABSTRACT ............................................................................................................................................ ii LIST OF FIGURES ............................................................................................................................... ix ACRONYMS ......................................................................................................................................... xi CHAPTER ONE ..................................................................................................................................... 1 INTRODUCTION .................................................................................................................................. 1 1.1 Background of the study ............................................................................................................... 1 1.2 Problem Statement ........................................................................................................................ 8 1.3 Objectives ................................................................................................................................... 11 1.4 Justification of the Study ............................................................................................................ 11 1.5 Outline of the study ..................................................................................................................... 12 CHAPTER TWO .................................................................................................................................. 13 LITERATURE REVIEW ..................................................................................................................... 13 2.2. Rural livelihoods strategies ........................................................................................................ 13 2.3 Government Efforts to alleviate Poverty through Agriculture .................................................... 21 2.4 Available Technologies in rural Areas ........................................................................................ 26 2.5 A Review of Available Food Value Chains ................................................................................ 30 .2.6 Sustainable Livelihoods ............................................................................................................. 33 2.6.1 Sustainable Livelihoods Concept ................................................................................................. 34 2.6.2 Sustainable Livelihoods Approach .............................................................................................. 34 2.6.3 Sustainable Livelihoods Framework ............................................................................................ 35 2.6.4 Comparison of Sustainable Livelihood Frameworks ................................................................... 36 2.6.4.1The United Nations Development Programme Framework ....................................................... 40 2.6.4.2 CARE Framework .................................................................................................................... 40 2.6.4.3 DFID Framework ...................................................................................................................... 40 2.6.5 Sustainable livelihoods framework analysis ............................................................................ 42 2.6.5.1 The vulnerability context .......................................................................................................... 42 2.6.5.2 Livelihoods assets ..................................................................................................................... 45 2.6.5.3 Policies, institutions and processes ........................................................................................... 50 2.6.5.4 Livelihood strategies ................................................................................................................. 51 iv 2.6.5.5 Livelihoods Outcomes .............................................................................................................. 53 CHAPTER THREE .............................................................................................................................. 56 METHODOLOGY ............................................................................................................................... 56 3.1 Introduction ................................................................................................................................
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