The Role of Private and Public Agricultural Sector Advisory Service Institutions in Linking Small-Scale Vegetable Farmers to Contract Farming

Abstract

One of the fundamental challenges facing the South African government is expanding the smallholder farmer sector as part of its broader job creation strategy to ensure support services for productive activity on land once it is transferred to beneficiaries. There is insufficient information in the literature about the predisposition of private and public advisory services and the types of investments needed in extension services, which might improve small-scale vegetable farmers' productivity and participation in the supply chain. Qualitative methods were used to collect data from 55 small-scale vegetable farmers, 15 government extension officers and 16 agribusiness firm informants from Amathole District Municipality and Sarah Baartman (formerly Cacadu) District Municipality in Eastern Cape, South Africa. The respondents were selected using a non-purposive sampling technique, and data were collected using self-administered interviews and focus group discussions. The data were analysed using thematic content analysis. The findings indicate that even though the government has increased the budgetary allocation to the agricultural sector over the last two decades, these resources are skewed. Moreover, in most instances, the distribution favours a politically connected minority. Agribusinesses were found to focus more on capturing agricultural value chains by prioritising the production of high-value crops at the expense of small-scale farmers' livelihoods while failing to provide support services. It is recommended that both private and public advisory services should tailor support services provided to small-scale farmers based on the needs of the type of market targeted by these farmers.