Factors affecting the competitiveness of the agribusiness sector in Swaziland

Identifying the factors that influence competitiveness is imperative in order, to appreciate the position of the firm in relation to its environment and to propose appropriate measures and strategies for increasing competitiveness of agribusiness firms. The study sought to determine the competitiveness of the agribusiness sector in Swaziland and to identify the factors affecting competitiveness. Porter’s (1998) theory of the determinants of competitive advantage was applied in the analysis. Data were analysed using descriptive statistics. The results indicated that the top 3 constraining factors to competitiveness were: the unavailability of professional labour (mean = 1.63); high cost of supplies/inputs (mean = 1.69); incompetence of public sector personnel (mean = 1.69); ineffective public sector personnel (mean = 1.88) and the size of the local market (mean = 1.88). The enhancing factors to competitiveness were: production of affordable high quality products (mean = 4.19); availability of water for industrial purposes (mean = 4.00) and affordable cost of unskilled labour (mean = 3.94). The results further indicate that the agribusiness sector is constrained, suggesting that the environment is not enabling for agribusinesses to be competitive. It is recommended that other markets be explored in order to expand the export base, which could be carried out through product diversification.http://www.macrothink.org/jashb201

The role of contractual relationships in the performance of supply chains : the case of the sugar industry in Swaziland

Please read the abstract in the section, 00front of this documentThesis (PhD (Agricultural Economics))--University of Pretoria, 2008.Agricultural Economics, Extension and Rural DevelopmentPhDunrestricte

The role of trust in the performance of supply chains: a dyad analysis of smallholder farmers and processing firms in the sugar industry in Swaziland

The purpose of this paper is to investigate the role of trust in the performance of the sugar industry supply chain in Swaziland. The study utilized perceptions of 124 smallholder cane growers in the sugar industry in Swaziland. Items presented in a Likert type scale were used to measure cane growers’ trust in the millers. Descriptive statistics involving cross tabulation were used to determine the impact of trust on the performance of the cane growers, which in turn has an influence on the performance of the whole sugar chain. The results indicate that farmers who have trust in the millers perform better than those without trust, and hence they contribute to the performance of the whole chain, in terms of more and good quality sugarcane supplied to the mill. This implies more sugar production and increased income to the industry as a whole. The results imply that a relationship founded on trust and mutual respect is more likely to succeed than a relationship of convenience supported by legal contingencies. Therefore, there is a need for honesty, fairness and absence of opportunistic behaviour between millers and cane growers for the industry to improve its performance.For more information on the Agricultural Economics Association of South Africa or subscription to Agrekon visit http://www.aeasa.org.zahttp://www.aeasa.org.z

Profitability of Smallholder Sugarcane Farming in Swaziland: The case of Komati Downstream Development Programme (KDDP) Sugar Farmers’ Associations, 2005-2011

Smallholder sugarcane growing is central to rural development and poverty alleviation in Swaziland. The main objective of the study was to investigate the profitability of smallholder sugarcane farmers’ associations under KDDP and to explain the determinants of sugarcane profitability. The study used data from 2004/05 to 2010/11 production seasons for 15 smallholder sugarcane farmers’ associations under KDDP. A structured questionnaire was used to solicit production and financial data. Secondary data were obtained from accounting records of the farmers. The associations were purposively selected because of their experience in sugarcane production. Descriptive statistics such as mean, standard deviation, minimum and maximum values were used in data analysis. The cost and returns analysis was used to assess the profitability, whilst multiple linear regression analysis was used in identifying the determinants of profitability.The associations were found to be profitable with a mean profit per hectare of E5080.00.The further results indicated that variables such as farm size, farming experience, sucrose price, labour cost per hectare and fertilizer cost per hectare significantly (p<0.01) influence the profitability of smallholder sugarcane farmers’ associations in the study area. The adjusted R2 was 0.623, suggesting that about 62.3% in the variation in profit per hectare is explained by the explanatory variables. It is, therefore recommended that good crop husbandry practices like timely weeding, fertilization, and irrigation should be adopted to produce a good crop which will enhance profitability. There is need for the promotion of collective action as an institutional means to improve bargaining power of farmers, especially when procuring inputs. Collective action will enable smallholder sugarcane farmers to buy in bulk and be entitled to discounts and that can enhance sustainability of profitability of the farmers

A conceptual analysis of relational contracts in agribusiness supply chains: the case of the sugar industry in Swaziland

This study examines the nature of the relationship between cane growers and millers and how it affects cane growers' perceptions of the value added in the sugar supply chain. Drawing from relational exchange theory, the study utilized the perceptions of 124 smallholder cane growers in the Swaziland sugar industry. Factors measured in terms of likert type scale were used to measure each relational construct within the miller-grower contract relationship. The results point to a number of aspects both growers and millers need to attend to which could contribute to improved relantionships and in turn efficiency and returns in the sugar industry in Swaziland.For more information on the Agricultural Economics Association of South Africa or subscription to Agrekon, visit http://www.aeasa.org.zahttp://www.aeasa.org.z

Factors Affecting the Competitiveness of the Agribusiness Sector in Swaziland

Identifying the factors that influence competitiveness is imperative in order, to appreciate the position of the firm in relation to its environment and to propose appropriate measures and strategies for increasing competitiveness of agribusiness firms. The study sought to determine the competitiveness of the agribusiness sector in Swaziland and to identify the factors affecting competitiveness. Porter’s (1998) theory of the determinants of competitive advantage was applied in the analysis. Data were analysed using descriptive statistics. The results indicated that the top 3 constraining factors to competitiveness were: the unavailability of professional labour (mean = 1.63); high cost of supplies/inputs (mean = 1.69); incompetence of public sector personnel (mean = 1.69); ineffective public sector personnel (mean = 1.88) and the size of the local market (mean = 1.88). The enhancing factors to competitiveness were: production of affordable high quality products (mean = 4.19); availability of water for industrial purposes (mean = 4.00) and affordable cost of unskilled labour (mean = 3.94). The results further indicate that the agribusiness sector is constrained, suggesting that the environment is not enabling for agribusinesses to be competitive. It is recommended that other markets be explored in order to expand the export base, which could be carried out through product diversification.http://www.macrothink.org/jashb201

Contractual relationships between smallholder sugarcane growers and millers in the sugar industry supply chain in Swaziland

This paper proposes and analyses a model of relationships between smallholder sugarcane growers and millers in the Swaziland sugar industry supply chain. In particular, it identifies the behavioural factors that contribute to the level of satisfaction that sugarcane growers perceive in their relationship with the millers. Using recursive models and multiple regression analysis, the results indicate that higher levels of trust lead to higher levels of cooperation that, in turn, lead to higher levels of commitment by the smallholder growers to the business relationship. Cooperation is also an antecedent of the benefits and of the satisfaction that these growers gained from the relationship. These results agree with a priori theory that trust, cooperation, strategic benefits, commitment and absence of opportunistic behaviour are essential elements for a successful relational exchange. The findings imply that both cane growers and millers need to focus on initiating, signalling and disclosing their behaviours in an effort to improve their relationship with each other. A relationship founded on trust and mutual respect is more likely to succeed than a relationship of convenience supported by legal contingencies. Therefore, relationships characterised by trust and physical and psychological commitment as well as cooperation between exchange parties is more important for mutual benefit and good quality relationship.For more information on the Agricultural Economics Association of South Africa or subscription to Agrekon, visit http://www.aeasa.org.zahttp://www.aeasa.org.z