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• W2117714690 abstract "The constraints that impede the growth of smallholder farmers have been attributed to lack ofaccess to markets and technical expertise. This has led to mainstream banks classifyingsmallholder farmers as high risk and therefore unwilling to finance smallholder farmers. Contractfarming has developed as a model that may be able to link smallholder farmers withagribusinesses who have the expertise and have built marketing channels that can be utilised bythe smallholder farmers. Despite its potential to bring smallholder farmers into the mainstreamagriculture industry, literature on contract farming has indicated that contract farming can beskewed in favour of the agribusiness due to their superior bargaining power and informationasymmetry in favour of the agribusiness.This study examines the Industrial Development Corporation (IDC)’s Kat River DevelopmentScheme to finance nine farmers through a contract farming arrangement with Riverside (Pty) Ltd.More particularly, the study examines how this financing model contributes to improved access tofinance, markets and technical expertise for the farmers. It also examines how the arrangementcontributes to reducing the risk of financing smallholder farmers for IDC.The empirical analysis indicates that, despite the fact that the farmers are able to obtain access tofinance, market and technical expertise, the ability for the scheme to meet its objectives in the longterm is dependent on improving transparency between the agribusiness and the farmers, providingappropriate incentives for the farmers to apply the required effort and the farmers buying into thelong term strategic aim (or “big picture”) of the scheme." @default.
• W2117714690 created "2016-06-24" @default.
• W2117714690 creator A5013474754 @default.
• W2117714690 date "2010-12-01" @default.
• W2117714690 modified "2023-09-28" @default.
• W2117714690 title "CONTRACT FARMING MODEL OF FINANCING SMALLHOLDER FARMERS IN SOUTH AFRICA: THE CASE OF THE IDC-KAT RIVER CITRUS DEVELOPMENT SCHEME" @default.
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• W2117714690 hasPublicationYear "2010" @default.
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