Factors that account for survivability of Black small-scale sugarcane growers in Ugu District Municipality.
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Date
2015
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Abstract
This research sought to determine survivability of Black Small-Scale Sugarcane
Growers (BSSSGs) in Ugu District Municipality amid the severe decline in the
sugarcane industry using two Sugarcane Growers Associations existing within the
District Municipality namely, Qhubekani Farmers Association and Umnini-Mfume
Farmers Sugarcane Farmers Association, designated by the researcher as streams
A and B respectively, as a case study. The objectives of the study were to ascertain
BSSSGs’ perception of the overall sugarcane industry, to ascertain BSSSGs’
perception of farm specific/micro-economic attributes that make them susceptible to
failure, to ascertain whether they employ deliberate strategies to mitigate the causes
and or effects of the decline and to ascertain BSSSGs’ perception of land tenure and
farm size effects on their survivability.
The sampling procedure employed in the study was a convenience sampling
technique for the first two respondents from Streams A and B respectively, followed
by a snowballing sample until the total target respondents of 15 are reached. The
study revealed among other things that the majority of respondents were optimistic
about the future of the industry and as such, were planning to add to the existing
hectares of sugarcane planted. Notwithstanding evidence of the decline in
profitability, which is advanced as the driver of the industry decline, most BSSSGs
stated profit as the motive for the planned increase in hectares.
In terms of adoption of agronomic practices, the majority of BSSSGs appeared to be
implementing these measures and in some instances attributed these to the survival
of their business or alternatively attributing these as underlying reasons for tangible
improvements to farming operations e.g. improved yields and profitability. Regarding
major changes that BSSSGs had introduced in the 10 years prior to the study, which
is considered the most difficult period during which the sugarcane industry decline
started to manifest, the research didn’t reveal any implementation of any
groundbreaking changes by BSSSGs.
On the causes for the industry decline, only a handful of farmers linked this to
international competitiveness, while others indicated transport costs as one of the
drivers of the decline. A significant number of respondents blamed the Recapitalization
Program and its sponsors as having contributed to the decline.
Furthermore, the RDP Housing Scheme and the Land Restitution Programme were
also mentioned by farmers as contributing significantly to loss of productive cane
land to competing uses for reasons discussed in detail in the study.
In general, the key findings of the research highlighted two categories of BSSSGs,
namely those that were fairly successful and belonged to a small percentage of a
relatively high income bracket, and these BSSSGs’ farm operations tended to have
relatively high capitalization and they generally exhibited better knowledge of
farming, had forged relationships with White commercial farmers and in some
instances had taken it upon themselves to assist other fellow BSSSGS, hence some
of them were participating in the Recapitalization Program as contractors. Overall,
these farmers were generally more aware of the industry situation and their
survivability was judged to be at a high level.
On the other extreme, the study elicited a group of farmers who were engaged in
passive farming, which was an unintended consequence of the Recapitalization
Program, which was exacerbated by contract farming. Contract farming and to a
lesser degree passive farming were severely criticised by some respondents during
the research and findings show that, the contrary to the original noble intentions of
the program sponsors, this may be causing further discontentment among its
intended recipients and also inadvertently promoted a culture of hand-outs.
The fairly successful group as identified by the study is deemed by the researcher as
more survivable compared to the other, and farmers constituting this group can
serve as a model of successful farming, and more importantly that key lessons can
be learned from this group and replicated to enhance survivability within the industry.
Another important aspect elicited by the research is BSSSGs comprise mainly
farmers who are beyond the age of 60 which is a cause for concern.
Description
Master of Commerce in Leadership and management. University of KwaZulu-Natal, Westville 2015.
Keywords
Sugar growing--South Africa--Ugu District Municipality., Sugarcane industry--South Africa--Ugu District Municipality., Farms, Small--South Africa--Ugu District Municipality., Theses--Leadership and management., Black sugarcane growers--Survival., Sugarcane growers.