A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa.
Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializi...
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2021
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oai:doaj.org-article:c61f95c57ec04382915ab5d4ad8f73e12021-12-02T20:10:08ZA gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa.1932-620310.1371/journal.pone.0253657https://doaj.org/article/c61f95c57ec04382915ab5d4ad8f73e12021-01-01T00:00:00Zhttps://doi.org/10.1371/journal.pone.0253657https://doaj.org/toc/1932-6203Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializing smallholder livestock producers. The Limpopo Industrial Development Corporation (IDC) Nguni Cattle Development Project is an example of such effort. The economic performance of these efforts needs to be evaluated. We use gross margin analysis to evaluate the performance of the Limpopo IDC Nguni Cattle Development Project. Additionally, we use regression analysis to identify factors influencing gross margins. Our results indicate that although smallholders show potential to commercialize, they lack commercial farming experience and require that a strong extension support system be used as one of the strategies to improve profitability. We also noted that individual farmers were more profitable than group farmers. Multiple regression analysis shows that three variables could be used to stimulate gross margin among the Limpopo IDC Nguni Cattle Development Project farmers. These are herd size, distance to market and farm size. Since farm size is a given, policy should focus on assisting farmers to build their herds and to have better access to markets.Mapule Valencia NkadimengGodswill MakombeObvious MapiyeCletos MapiyeIsaac OluwatayoKennedy DzamaCedric MojapeloNaftali MollelJones NgambiMadimetja Human MautjanaPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 6, p e0253657 (2021) |
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Medicine R Science Q |
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Medicine R Science Q Mapule Valencia Nkadimeng Godswill Makombe Obvious Mapiye Cletos Mapiye Isaac Oluwatayo Kennedy Dzama Cedric Mojapelo Naftali Mollel Jones Ngambi Madimetja Human Mautjana A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. |
| description |
Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializing smallholder livestock producers. The Limpopo Industrial Development Corporation (IDC) Nguni Cattle Development Project is an example of such effort. The economic performance of these efforts needs to be evaluated. We use gross margin analysis to evaluate the performance of the Limpopo IDC Nguni Cattle Development Project. Additionally, we use regression analysis to identify factors influencing gross margins. Our results indicate that although smallholders show potential to commercialize, they lack commercial farming experience and require that a strong extension support system be used as one of the strategies to improve profitability. We also noted that individual farmers were more profitable than group farmers. Multiple regression analysis shows that three variables could be used to stimulate gross margin among the Limpopo IDC Nguni Cattle Development Project farmers. These are herd size, distance to market and farm size. Since farm size is a given, policy should focus on assisting farmers to build their herds and to have better access to markets. |
| format |
article |
| author |
Mapule Valencia Nkadimeng Godswill Makombe Obvious Mapiye Cletos Mapiye Isaac Oluwatayo Kennedy Dzama Cedric Mojapelo Naftali Mollel Jones Ngambi Madimetja Human Mautjana |
| author_facet |
Mapule Valencia Nkadimeng Godswill Makombe Obvious Mapiye Cletos Mapiye Isaac Oluwatayo Kennedy Dzama Cedric Mojapelo Naftali Mollel Jones Ngambi Madimetja Human Mautjana |
| author_sort |
Mapule Valencia Nkadimeng |
| title |
A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. |
| title_short |
A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. |
| title_full |
A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. |
| title_fullStr |
A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. |
| title_full_unstemmed |
A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. |
| title_sort |
gross margin analysis for nguni cattle farmers in limpopo province, south africa. |
| publisher |
Public Library of Science (PLoS) |
| publishDate |
2021 |
| url |
https://doaj.org/article/c61f95c57ec04382915ab5d4ad8f73e1 |
| work_keys_str_mv |
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