ANALYSIS OF IRRIGATION DEVELOPMENT POST FAST TRACK LAND REFORM PROGRAMME. A CASE STUDY OF GOROMONZI DISTRICT, MASHONALAND EAST PROVINCE, ZIMBABWE

Irrigation development is a gateway to increased agricultural, water and land productivity, increased household and national food security. However, irrigation development has been a major challenge in many developing countries, including Zimbabwe. The launch of the Fast Track Land Reform Programme (FTLRP) in 2003 ushered in new unskilled cadres and this was followed by a reduction in area developed for irrigation from 200,000ha to approximately 120,000ha. This was due to thefts, dilapidation, and vandalism of irrigation infrastructure. The government made efforts to develop and bring back the 200,000ha into operational, but little has been achieved. To assess irrigation development post FTLRP, a case study was done in Goromonzi District. Using a Trend Analysis to assess the trend in irrigation funding, a downward trend was revealed. A Gross Margin Analysis, modeled via the Business Coefficient Expansion Factor (BCEF) to evaluate productivity and profitability of the irrigation enterprises showed that farmers performed below average and major irrigation crops were below the ideal BCEF threshold of 2.5, suggesting non-profitability of irrigation enterprises. An analysis on infrastructure revealed that most of it was partially or non-functional, hence farmers reduced area under irrigation. The study also revealed non-accessibility of training services by farmers. The study concluded that inadequate irrigation funding, low irrigation productivity, nonprofitability of irrigation enterprises, poor cost recovery mechanisms and lack of relevant training has led to low irrigation development. The study recommends that national governments should formulate and hold sound irrigation development strategies and encouraged to partner with public and private institutions in defining and implementing such comprehensive strategies for sustainable irrigation development.Irrigation, irrigation development, funding, productivity, cost recovery, viable, FTLRP, Crop Production/Industries,

Perceptions of Small-Scale Farmers on Tobacco Contract Farming: The Case of Marondera Rural District, Zimbabwe

Small-scale farmers’ perceptions of tobacco contract farming schemes in the Marondera rural district of Zimbabwe were critically assessed in this paper. The multi-stage sampling design was used to select five wards with the highest number of tobacco contracted farmers from where 60 contract and 60 non-contract tobacco farmers were randomly selected. A 5-point Likert scale was used to rank farmers’ perceptions. The paper established that small-scale farmers in Marondera rural district strongly believe contract farming makes it possible for the majority of farmers to venture into the production of high-value crops as it provides access to the much-needed markets while reducing the risk of price fluctuations. However, the majority of the respondents believed that contract farming is not profitable and there is a manipulation of farmers in contract farming arrangements. The independent samples t-test indicated a significant difference in perception score between participants and non-participants of tobacco contract farming schemes (p<0.05). The farmers who were not participating in tobacco contract farming schemes had a more positive perception of these schemes while those who participated had a more negative perception. The major implication is that gains associated with tobacco contract arrangements are not always apparent to farmers while the disincentives may be more visible. It is therefore fundamental that contract companies address some of the shortcomings existing in these contractual arrangements as well as change the perception of the farmers to develop mutually beneficial lasting relationships with their major stakeholders

TECHNICAL EFFICIENCY OF RESETTLEMENT FARMERS OF ZIMBABWE

This paper examines the technical efficiency of the resettlement sector of the agricultural system in Zimbabwe. The land reform programme aims to redistribute land from large-scale commercial farmers to the small-scale peasantry sector so as to reduce rural poverty. Since such an agrarian reform could result in higher output, higher labour absorption, and a more equitable distribution of income, it is important to assess the level of efficiency of the beneficiaries of this programme. The stochastic frontier function model of the Cobb-Douglas type was used to determine the technical efficiency of a group of 44 cotton farmers from Mutanda resettlement scheme of Manicaland province. Technical inefficiency effects are estimated and are assumed to be a function of other observable variables related to the farming operations. The results reveal some technical efficiency levels of the sample farmers that are varied widely, ranging from 22 per cent to 99 percent, with a mean value of about 71%. The technical inefficiency effects are found to be significant at the 25 per cent level. Technical inefficiency of cotton production decreased with increased family size and age of the head of household, but increased with farm size and education level of head of household.Agricultural and Food Policy, Crop Production/Industries, Institutional and Behavioral Economics,

Factors Influencing Efficiency and Productivity of Contracted and Non-Contracted Tobacco Farmers in Zimbabwe: Case of Mount Darwin District

This research was financed by the Govan Mbeki Research and Development Centre. Abstract This main aim of this study was to determine the factors influencing efficiency and productivity of contracted and non-contracted tobacco farmers in Mount Darwin District of Zimbabwe. Data was collected from 380 randomly sampled smallholder farmers. The Data Envelopment Analysis (DEA) was used to estimate the efficiency scores for the tobacco farmers. The Tobit model censored to zero was used to evaluate the determinants of efficiency. The results showed that gender had a negative impact on both technical efficiency and economic efficiency. The probability of one being a male was likely to reduce economic efficiency by 0.022. However, there was a positive relationship between gender and allocative efficiency. The probability of one being a male was likely to result in increase in allocative efficient by 0.035.  The results from the study showed that contracted farmers were more productive and efficient than non-contracted farmers. The ages of the farmer and education level were not significant in influencing the economic efficiencies of the farmers. Other variables like farming experience, production model, access to extension and farm size were statistically significant in influencing the economic efficiencies of tobacco farmers. The possible policy recommendations to improve efficiency of the tobacco farmers are drawn from the research findings. Keywords: technical efficiency, allocative efficiency; economic efficiency; data envelopment analysis, tobacco farmers, Mount Darwin District. DOI: 10.7176/JESD/10-10-05 Publication date:May 31st 201

The Institutional and Socio-Economic Constraints to Smallholder Tobacco Production and Marketing in Mount Darwin District of Zimbabwe: The Value Chain Approach

This research was financed by the Govan Mbeki Research and Development Centre. Abstract This study used the value chain approach to identify the institutional and socio-economic constraints to tobacco production and marketing in Mount Darwin District; Zimbabwe. Three hundred and eighty farmers were randomly sampled for the study. Key informant interviews were used to collect data from input suppliers, contractors, buyers, auction floors, the Tobacco Industry Marketing Board, EMA and government extension staff. Data was analysed using descriptive statistics and the Pairwise ranking matrix.  Results from the study identified shortage of foreign currency and high transport costs as the major constraints affecting input suppliers. Dry spells, labour shortages, high inputs costs, fuel shortages, pests were some of the farmers’ constraints to tobacco production. Some of the major marketing constraints affecting the smallholder farmers included low producer prices, high transport costs, theft in transit and exploitative prices offered by tobacco merchants. Auction companies cited viability challenges due to declining tobacco volumes sold through auction floors. Tobacco contractors cited side-marketing, diversion of tobacco inputs by farmers and high operating costs as major constraints affecting their operations. The results from the study show that there are a lot of constraints affecting the smallholder tobacco chain and these can be addressed through collaboration among the chain stakeholders Keywords: institutional constraints; tobacco value chain; Mount Darwin District; smallholder farmers. DOI: 10.7176/JESD/10-7-09 Publication date: April 30th 201

Determinants of pricing objectives and price flexibility policies of pork-based agro-businesses in Mashonaland Central province, Zimbabwe

Background: The article focuses on the pricing strategies that are used in a dynamic institutional environment of land reform and indigenisation policies. Zimbabwe underwent a land reform incorporating new players in the pork agribusinesses, as well as indigenisation, altering agro-business decision-making structures. One such decision is effective pricing.   Aim: The objective of the study was to highlight the determinants of utilising a particular pricing objective and price flexibility policy in the Zimbabwean pork industry.   Setting: The study examined the pricing objectives and price flexibility policies of pig producers, pork abattoirs and butcheries in Mashonaland Central province, Zimbabwe.   Methods: The study used a cross-sectional, descriptive and quantitative survey of pig producers, pork abattoirs and pork butcheries. A structured precoded questionnaire-based interview of 166 pig producers, 6 pork abattoirs and 24 butchers was used as the data collection tool and method. A logit model was used for analysis, ascertaining determinants of a binary choice model.   Results: The study found that agribusinesses’ pricing objectives were determined by the product portfolio, margin, merchandise handled, distance the furthest buyer travels and consideration of other industry players’ pricing at the p < 0.01 level. Furthermore, factors such as seasonality in April to September sales, quality considerations (p < 0.05), frequency of retailers and size considerations (p < 0.1) were also significant determinants of pricing objectives. Also, the agribusinesses’ price flexibility policies were shown to be determined by agribusiness location, average weight of merchandise, frequency of individual customers, size consideration and consideration of other industry players’ pricing at the p < 0.01 level. In addition, margin, frequency of abattoir buyers (p < 0.05) as well as pork product portfolio (p < 0.1) were also observed to be major factors towards a flexible pricing policy.   Conclusion: The results suggest that pork industry players in Zimbabwe are myopic in their pricing strategies, having factors such as product portfolio, margin, merchandise handled and considerations of other industry players’ strategies as dualistically determining pricing objective and price flexibility policy utilised. The study recommends that pork industry players shift from myopic pricing objectives of profit and survival and devise new pricing strategies based on sales and competitive pricing. There is also need for less rigidity in flexible price policies to take advantage of the dynamic external environment

Marketing mix strategy determinants in pork-based agri-businesses: Experiences from Zimbabwe

Orientation: Agri-businesses, especially at the farmer level, are devoid of sound marketing strategy. Research purpose: This study aimed to highlight the marketing mix elements most considered by pork-based agri-businesses. Motivation for the study: Zimbabwe underwent institutional transformation policies of land reform and indigenisation policies. New industry players came to the fore. However, they were devoid of sound business background. Research design, approach and method: The study utilised a questionnaire in a cross-sectional survey of 166 pig farmers, 6 pork processors and 24 pork butchers in Mashonaland Central province. Descriptive statistics, logistic regression and multiple linear regression were used to analyse the data. Main findings: Product, promotion, price and partnership were considered. Category of agri-business, distance the furthest buyer travelled, the merchandise handled and frequency of abattoir or processor buyers determined marketing mix strategy. Perceptive performance of the agri-businesses in terms of marketing mix strategy was determined by category of agri-business, merchandise consideration, frequency of abattoir or processor buyer, seasonality of sales and time of consideration when selling; agri-business location and the experience of the agri-business. Practical/managerial implications: The study concluded with the myopic use of marketing mix based strategies in the Zimbabwean agri-businesses, targeting product-based characteristics, with varying determinants. There is opportunity to strategically position where place, promotion and pricing advantages exist. Contribution/value-add: The study added to insights for marketing managers, especially in a structural transformation situation, what marketing strategies are mostly utilised. This tends to avail shortfalls and opportunities that can be taken advantage of, to strategically position pork agri-businesses in Zimbabwe

Determinants of Informal Land Renting Decisions by A1 and A2 Farmers in Mashonaland East Province of Zimbabwe

Land rental markets are critical in developing economies as they contribute to efficiency, equity and welfare gains to farmers involved under conditions of low transaction costs. Despite lack of policy consistency in Zimbabwe, A1 and A2 farmers have been involved in these land rental markets, albeit in an informal manner. This study sought to establish the determinants of farmers’ decision to take part in these informal markets. A survey was carried out in Mashonaland East province with a sample of 339 households selected through multi-stage sampling methods and data analysed using a bi-variate Tobit model. Results showed that combined together, the proportion of farmers involved in informal land rental markets are as much as those not participating. Determinants of renting-in were identified as gender, household income, permanent labour, cultivated area, tenure certainty, irrigable land size and crop diversification. Factors affecting renting-out decisions were age, permanent labour, irrigable land size and crop diversification and these results are not in any way different from findings from previous studies. The conclusion was that household characteristics and land endowments factors were strong in decisions to rent-in land while land endowments factors were dominant in decisions to rent-out land. Any future considerations for formalising land rental markets should consider these important factors having a bearing on land rental decisions

Benefits of an Irrigation Scheme and Its Determinants to Surrounding Peripheral Rural Communities

The objective of the study was to identify the extent of benefits and their determinants to communities surrounding the Qamata Irrigation Scheme (QIS) in the Eastern Cape Province, South Africa. The study used a quantitative based cross-sectional survey of 197 households within a radius of 20 km from the QIS. Multiple sampling methods were utilized where the villages were randomly and the households conveniently selected. A semi-structured pre-coded questionnaire was utilized to collect the data which was analyzed using descriptive statistics and multinomial logit regression. The study identified 14 discriminant benefits ranging from job opportunities, income increment food diversification to share cropping. Sixty-two percent of the households identified less than 5 benefits, whilst 27% and 11% identified 6-10 and 11-14 benefits respectively. Determinants of a surrounding household to attain benefits were significantly influenced by the distance from the scheme, the main source of income and gender of household head (P&lt;0.01); marital and employment status (P&lt;0.05); and access to farm land (P&lt;0.1). The study concludes that the level of benefit diffused to surrounding households is based on socio-economic factors. The study recommends conscientization of surrounding communities on the peripheral benefits accrued from the proximity to the QIS, achievable through awareness initiatives