Dynamics of institutional arrangements for small-scale vegetable farmers in Namibia: An analysis of the market, state and community institutions

Thesis (PhD)--Stellenbosch University, 2020.ENGLISH SUMMARY : In developing countries, especially in Africa, the commercialisation of agriculture has proven to be a means of increasing the income of farm households and productivity, resulting in poverty reduction at the household level. The principal research question addressed by this study was why it would make sense for the government to invest in services for small-scale fruit or vegetable farmers if these farmers could not increase production because of a lack of market access unless they could make a profit, which would probably imply heavy subsidisation of marketing infrastructures by taxpayers. A vegetable industry development case study was conducted in north-central Namibia. A Probit model was used to determine the factors that influence farmers to supply to the formal markets. The model results indicated that ownership of a vehicle and distance from farm to water source were statistically significant determinants of a farmer’s decision to participate in the commercialisation of high-value crops at p=0.009 and p=0.073 respectively. In addition, the results indicate that water rights are not clearly defined, and there is no land market and limited access to credit for the farmers. Moreover, a transaction cost analysis demonstrated that small-scale high-value crop production in the study area is experiencing high transaction costs that make the vegetable industry to be globally less competitive. The principal reason for high transaction costs is that the commercialisation of vegetables is constrained by information asymmetries or principal-agent problems among actors in the value chain, resulting in the failure of the market, state, and community institutional arrangements. The study introduced a new approach incorporating insights from transaction cost economics in exploring the interrelationship of the market, state, and community institutions in agricultural development in developing countries to understand the influence of transaction costs on economic performance. The model introduces a public-private partnership as a policy instrument linking small-scale farmers to input and output markets through contract production. The model identifies and minimises transaction costs among value chain actors, to overcome the challenges of the market, state, and community institutions. The study concluded that poor implementation of agricultural development initiatives as introduced by the state or the private sector (the market) and cultural embeddedness may limit agricultural development as community values, norms or beliefs take long to adjust to external ideas or technologies due to inadequate information in developing countries. The study recommends that there is a need for policy intervention that addresses water rights and improved access to credit as well as encouraging production and marketing cooperative to reduce costs of accessing input and output markets. An amendment of the Communal Land Reform Act No. 5 of 2002 would enable the introduction of land markets and rentals in communal areas of Namibia enable farmers to use their land as collateral to obtain credit from financial institutions. Amendments to the Communal Land Reform Act should also specify how to protect vulnerable and poor people such as women and the youth in communities and to ensure that land rights are available as a social safety net.AFRIKAANSE OPSOMMING : In ontwikkelende lande, veral dié in Afrika, is daar bewys dat die kommersialisering van landbou ’n manier is om die inkomste van plaashuishoudings te verhoog en produktiwiteit te verhoog as gevolg van die vermindering van armoede op die huishoudelike vlak. Die oorhoofse navorsingsvraag wat hier aangespreek word, is hoekom die staat sou belê in ondersteuning aan kleinskaalse vrugte- of groenteprodusente in die geval waar hulle nie produksie kon verhoog as gevolg van ontoeganklike markte of die onvermoë om wins te maak nie, aangesien die staat in sulke gevalle waarskynlik boonop grootskaals sal moet investeer in bemarkingsinfrastruktuur. Hierdie studie stel ’n nuwe benadering voor wat insigte van ’n transaksiekoste-ekonomie inkorporeer in die verkenning van die verhoudings tussen mark-, staats- en gemeenskapsinstellings in landbou-ontwikkeling in ontwikkelende lande om die invloed van transaksiekostes op ekonomiese prestasie te verstaan. ’n Gevallestudie wat die ontwikkeling van ’n groentebedryf in noord-sentraal Namibië behels, is onderneem. Die resultate stel voor dat die kommersialisasie van landbou beperk word deur faktore soos ’n gebrek aan grondbesit, beperkte toegang tot infrastruktuur en markte (inset, uitset en krediet), ongereelde besoeke deur voorligtingsbeamptes, kulturele verandering, gebrekkige tegnologieë en onvolledige inligting onder akteurs in die waardeketting. Die resultate demonstreer ook dat kleinskaalse hoë-waarde gewasproduksie in die studiegebied hoë transaksiekostes ervaar, wat die groentebedryf globaal minder mededingend maak. Die vernaamste rede vir die hoë transaksiekostes is dat die kommersialisasie van groente beperk word deur inligtingsassimetrieë of hoof-agent probleme onder die akteurs in die waardeketting, wat ’n mislukking van institusionele reëlings in die mark-, staat en gemeenskap veroorsaak. Gegewe die mislukking van die kommersialisasie van landbou in die studiegebied, is ’n model ontwikkel wat vir die verdere ontwikkeling van die groentebedryf gebruik kan word. Hierdie model stel ’n openbare-private vennootskap voor as ’n beleidsinstrument wat kleinskaalse produsente deur kontrakproduksie aan inset- en uitsetmarkte verbind. ’n Vername kenmerk van die model is die identifisering en minimalisering van transaksiekostes onder akteurs in die waardeketting as gevolg van die oorkoming van die mislukking van mark-, staats- en gemeenskapsinstellings. Die studie stel ook ’n strategiese beleidsopsie voor om die Gemeenskaplike Grondhervormingswet (Communal Land Reform Act) Nr. 5 van 2002 te wysig om dit moontlik te maak om grondmarkte en grondverhuring in die gemeenskaplike gebiede van Namibië in te voer. Dít sal verseker dat boere grondregte in die gebruiklike grondbesitstelsel kan bekom, wat hulle die vermoë sal bied om hulle grond as aanvullende sekuriteit te gebruik om krediet vanaf finansiële instellings te bekom. Wysigings tot bogenoemde wet moet ook spesifiseer hoe om kwesbare en arm mense, soos vrouens en die jeug in gemeenskappe, te beskerm, en om te verseker dat grondregte as ’n maatskaplike veiligheidsnet beskikbaar is vir hierdie mense in die gemeenskaplike gebiede. Die studie kom tot die slotsom dat swak implementering van landbou-ontwikkelingsinisiatiewe soos deur die staat of die privaatsektor (die mark) ingevoer word, asook kulturele inbedding, die ekonomiese aktiwiteit vir landbou-ontwikkeling kan beperk omdat gemeenskapswaardes, norme en gemeenskapsoortuigings lank neem om in ontwikkelende lande by eksterne ideës of tegnologieë aan te pas as gevolg van onvoldoende inligting. Hierdie faktore moet in toekomstige landboubesigheidstudies in ag geneem word.Doctora

The development of the horticultural industry in Namibia : an assessment of the determinants of the global market competitiveness of table grape production

Thesis (MScAgric)--University of Stellenbosch, 2007.ENGLISH ABSTRACT: The declaration of Namibia’s independence from South Africa in 1990 has seen the Namibian government aim to plan and implement development programmes that enhance a growing agricultural sector. The new government is facing challenges regarding the addressing of inequalities of income and the allocation and distribution of resources, which have resulted in implementation of the land reform programmes. On the international front, Namibia is a member country of various trade arrangements, such as the WTO, the SADC and SACU. The main driving force behind Namibia’s joining the international communities chiefly has been market access and trade policy reforms. The country’s agricultural sector, in particular the horticultural industry, in regards to table grape production, has been significantly affected by both domestic and regional policies, as well as by the WTO rules. The aim of this study is to determine the environmental factors that create a competitive advantage for the Namibian table grape industry in the international market. A detailed supply-chain analysis, augmented by Porter’s ‘diamond’ model, is used in this study to assess the determinants of the competitiveness of fresh table grapes. Interviews were conducted in informal, semi-structured questions. The questionnaires were mailed to several producers within the table grape-growing industry. Secondary information was obtained from reports, articles and research publications, among other sources. An expert assessment was used to verify information based on the reference methods. Consultations took place in the form of office visits and, in some cases, telephone interviews were held with different experts. The finding of the study shows that Namibia can supply the European markets during the northern hemisphere off-season with quality fresh table grapes. However, industry growth in the European Union (EU) market is constrained by limited free import quotas and high tariffs, specifically as regards seeded fresh table grapes, which are not exempt from such duties. Such constraints are in place despite Namibia’s meeting of international set quality standards, such as EUREPGAP. Moreover, there is potential for increasing supplies to the regional and Asian markets as well as the US market albeit to the lesser extent. Finally, Namibian fresh table grapes profitability is significantly affected by the high production and transaction costs incurred, as well as by the decline in business and the depreciation of the US Dollar against the Namibian Dollar. The study makes the general recommendation that producers should significantly reduce their transaction costs within the chain, by means of vertical co-ordination and integration.AFRIKAANSE OPSOMMING: Met die verklaring van Namibië se onafhanklikheid van Suid-Afrika in 1990 het die Namibiese regering hulle dit ten doel gestel om ontwikkelingsprogramme te beplan en in werking te stel ten einde daardie land se groeiende landbousektor te versterk. Die nuwe regering moet tans uitdagings met betrekking tot inkomsteongelykhede en die toekenning en verspreiding van hulpbronne die hoof bied wat tot die inwerkingstelling van grondhervormingsprogramme aanleiding gegee het. Internasionaal is Namibië 'n lidland van verskeie handelsreëlings soos die Wêreldhandelsorganisasie (WHO), die Suider-Afrikaanse Ontwikkelingsgemeenskap (SAOG) en die Suider-Afrikaanse Doeane-unie (SADU). Die twee hooffaktore wat daartoe gelei het dat Namibië hom by die internasionale gemeenskappe skaar, is marktoegang en handelsbeleidhervormings. Die land se landbousektor, in besonder die tuinboukundige bedryf met die klem op tafeldruifproduksie, is aansienlik deur binnelandse en streeksbeleid asook deur die WHO-reëls geraak. Die doel van hierdie studie is om die omgewingsfaktore te bepaal wat in die internasionale mark aan die Namibiese tafeldruifbedryf 'n mededingende voordeel gee. Derhalwe gebruik die navorser 'n gedetailleerde aanvoerkettingontleding, ondersteun deur Porter se “diamantmodel”, om die beslissende faktore vir die mededingendheid van vars tafeldruiwe te evalueer. Onderhoude is met behulp van informele, semigestruktureerde vrae gevoer. Die vraelyste is aan verskeie produsente op die gebied van tafeldruifboerdery gepos. Sekondêre inligting is ook onder andere uit verslae, artikels en navorsingspublikasies verkry. Met behulp van 'n kundige evaluering is inligting op grond van die verwysingsmetodes geverifieer. Oorlegpleging met verskeie kundiges het in die vorm van kantoorbesoeke en in sommige gevalle deur middel van telefoononderhoude plaasgevind. Die studiebevinding toon dat Namibië die Europese markte gedurende die noordelike halfrond se tussenseisoen van gehalte- vars tafeldruiwe kan voorsien. Die uitbreiding van die bedryf in die Europese Unie (EU-) mark word egter deur beperkte gratis invoerkwotas en hoë tariewe aan bande gelê, in besonder met betrekking tot pitlose, vars tafeldruiwe wat nie van invoerbelasting vrygestel is nie. Hierdie beperkinge word opgelê ten spyte daarvan dat Namibië aan vasgestelde internasionale gehaltestandaarde soos EUREPGAP voldoen. Die moontlikheid bestaan boonop om lewering aan die streeks- en Asiatiese markte asook die VS-mark te verhoog, hoewel in 'n mindere mate. Laastens word die winsgewendheid van Namibiese vars tafeldruiwe beduidend deur hoë produksie- en transaksiekoste, asook deur die afname in sake en die waardevermindering van die Amerikaanse teenoor die Namibiese dollar geraak. Die studie maak die algemene aanbeveling dat produsente hulle transaksiekoste binne die ketting aansienlik met behulp van vertikale koördinering en integrasie moet verminder

Reviewing theory, practices and dynamics of agricultural cooperatives: Understanding cooperatives' development in Namibia

This paper reviews the principles of cooperatives as outlined by the International Cooperative Alliance. The evolution of agricultural cooperative thought, theory, and purpose as well as problems associated with cooperatives are reviewed from the standpoint of how cooperatives can provide benefits to their members. Globally economists, social theorists, and politicians have drawn considerable attention to the early dynamic development of cooperatives for their achievement of self-help through group action. Given the new perspectives on cooperative theory and the scope of changes in how cooperatives operate and are structured, cooperatives have even greater potential for coordinating self-help actions, but this potential needs the support of cooperative education services. The development and growth of cooperatives in Namibia, as in many other countries worldwide, have gone through substantial structural transitions in an effort to adjust to a rapidly changing economic environment characterised by increasing globalisation, economic crises, environmental uncertainties and agricultural industrialisation. The main problems and future of cooperatives, specifically agricultural organisations, are also highlighted in this paper

Diversity and Domestication Status of Spider Plant (Gynandropsis gynandra, L.) amongst Sociolinguistic Groups of Northern Namibia

Knowledge on the diversity and domestication levels of the spider plant (Gynandropsis gynandra) has the potential to affect pre-breeding for client-preferred traits, yet information is scarce in Namibia due to limited research. We investigated indigenous knowledge on the species diversity and domestication levels in the regions of Kavango West, Ohangwena, Omusati, Oshana, and Oshikoto of northern Namibia. Semi-structured interviews involving 100 randomly selected farming households, four key informant interviews, and a focus group discussion were conducted. Descriptive and chi-square tests were conducted using IBM SPSS version 20. Out of the possible four morphotypes, the results suggested that only one with green stem and green petiole existed and was associated with soils rich in organic manure. Spider plant abundance was reported to be on the decline, due to declining soil fertility. On a scale of 0 (wild species) to 6 (highest level of domestication), an index of 1.56 was found and this implied very low domestication levels. Furthermore, the study found significant differences in the trends of domestication across the sociolinguistic groups (χ2 (12, N = 98) = 46.9, p < 0.001) and regions studied (χ2 (12, N = 100) = 47.8, p < 0.001), suggesting cultural and geographical influences. In conclusion, the findings constituted an important precedent for guiding subsequent pre-breeding efforts