ANALYSIS OF PROFITABILITY OF SMALLHOLDER IRRIGATED FOOD PLOTS IN THE EASTERN CAPE PROVINCE OF SOUTH AFRICA

• Main Authors: Lelethu Mdoda, Ajuruchukwu Obi
• Format: Article
• Language: English
• Published: University of Life Sciences in Poznań 2019-10-01
• Series: Journal of Agribusiness and Rural Development
• Subjects: smallholder; profitability; irrigated; Eastern Cape
• Online Access: http://www1.up.poznan.pl/jard/index.php/jard/article/view/1265

Smallholder irrigation farming is transformative to poor households as they improve livelihoods and alleviate poverty but little has been done to quantify their profitability. The present study assessed the profitability of smallholder irrigated crop farmers in the Eastern Cape Province of South Africa and ascertained their determinants. A multi-stratified technique was employed to select 120 smallholder irrigated crop farmers. Data were analysed using gross margin and multiple regression models. Results showed that crop production is profitable. Farm experience, years spent in school, access to credit, distance to markets, and tractor use were found to have a bearing on the profitability of the irrigated crop farmers. Based on the results, crop farming is identified as crucial for jobs and poverty reduction.