2008RePEc: Research Papers in EconomicsRequires access

Finding a sustainable linkage between the emerging farmer and formal markets: The case of pick ‘n pay and the Zanyokwe farmers in the eastern Cape of South Africa

J.A. Bediako, Kofi Debrah

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Abstract

A major problem confronting rural and emerging farmers is the marketing of their products. Most of the farmers encountered depend on the local or village markets which are often saturated or purchases are not backed by effective demand to make sales meaningful for the desired benefits. Small scale South African farmers have not been able to access the formal sector to sell their goods. There are several reasons for this which is linked to the nature of the historical evolution of the South African agricultural sector and in particular the food production system. Recently, it has been argued that the small scale farmers are not able to meet the standards that are set by the formal sector and are therefore responsible for their own exclusion by producing poor quality products. The private sector is not aware of the capabilities of the small scale African farmers. Consequently the private sector is unable to communicate its needs to this group of emergent farmers. This paper presents information and findings of the Case Study project of how the gap has been bridged from both ends of the production chain about needs of business and the small scale or emerging farmer which has led to finding a sustainable marketing linkage between the rural farmer and the private sector.

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A major problem confronting rural and emerging farmers is the marketing of their products. Most of the farmers encountered depend on the local or village markets which are often saturated or purchases are not backed by effective demand to make sales meaningful for the desired benefits. Small scale South African farmers have not been able to access the formal sector to sell their goods. There are several reasons for this which is linked to the nature of the historical evolution of the South African agricultural sector and in particular the food production system. Recently, it has been argued that the small scale farmers are not able to meet the standards that are set by the formal sector and are therefore responsible for their own exclusion by producing poor quality products. The private sector is not aware of the capabilities of the small scale African farmers. Consequently the private sector is unable to communicate its needs to this group of emergent farmers. This paper presents information and findings of the Case Study project of how the gap has been bridged from both ends of the production chain about needs of business and the small scale or emerging farmer which has led to finding a sustainable marketing linkage between the rural farmer and the private sector.

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Available abstract

A major problem confronting rural and emerging farmers is the marketing of their products. Most of the farmers encountered depend on the local or village markets which are often saturated or purchases are not backed by effective demand to make sales meaningful for the desired benefits. Small scale South African farmers have not been able to access the formal sector to sell their goods. There are several reasons for this which is linked to the nature of the historical evolution of the South African agricultural sector and in particular the food production system. Recently, it has been argued that the small scale farmers are not able to meet the standards that are set by the formal sector and are therefore responsible for their own exclusion by producing poor quality products. The private sector is not aware of the capabilities of the small scale African farmers. Consequently the private sector is unable to communicate its needs to this group of emergent farmers. This paper presents information and findings of the Case Study project of how the gap has been bridged from both ends of the production chain about needs of business and the small scale or emerging farmer which has led to finding a sustainable marketing linkage between the rural farmer and the private sector.

Key concepts: Business, Private sector, Agriculture, Quality (philosophy), Scale (ratio), Production (economics), Linkage (software), Marketing

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Finding a sustainable linkage between the emerging farmer and formal markets: The case of pick ‘n pay and the Zanyokwe farmers in the eastern Cape of South Africa — Research Paper | ScholarLens