Identifying the Causes of Failure in the Communal Property Associations (CPAs), State Owned and Household Farms

Abstract

CPAs, state-owned and household citrus farmers, are important within the citrus fruit group by value and volume. Their success could increase exports, job opportunities, foreign exchange revenue, rural development, and economic growth. This study provides the results of the causes of failure in the CPA's, state-owned and household citrus farms in Mpumalanga Province. The study used primary data collected from a random sample of 150 citrus farm managers, and SPSS was used to analyse the results. The causes of failure within these farming sectors are linked to a lack of participation in drafting business plans. In the study area, government departments or agencies drafted business plans for farmers. Farmers preferred the employment of direct or extended owners, relatives/family members with little experience in managing a farm business, yet they were not competent in managing the farms viably. The high input costs were the biggest cause of failure, and farmers sometimes could not ensure that irrigation water was available when needed. An increased protectionism in the lucrative markets was also listed as one of the causes affecting all farmers; hence, farmers could not access any new markets. This study thus recommends the involvement of farmers in the drafting of business plans and the employment of more local community members with skills in farming, sound farming experience and improved level of education.