Value chain analysis and resource-use efficiency of small-holders broiler farmers in Capricorn District, Limpopo Province

Abstract

Food insecurity and hunger problems have received considerable attention in recent years from research experts and governments worldwide. The most important nutrients in food security are proteins, especially animal proteins. Previous studies have indicated that poultry production is the strategic source of animal protein because of its fecundity, fast growth rate and short generation interval. The poultry production sector consists of broiler and layers subsector. In South Africa, broiler production is practised by both large-scale and smallholder farmers; with the former dominating the retail and urban markets. Smallholder broiler farmers on the other hand, produce for local individuals and do not have access to high value chain markets. There are several studies on broiler value chain countrywide and on broiler resource-use efficiency in many developing countries. However, most researchers have not focused on smallholder broiler farmers despite the fact that they provide cheaper broiler meat to the majority of low income rural populations. Thus, this study analysed the broiler value chain and socio-economic factors that contribute to resource-use efficiency of smallholder broiler farmers in general in the Capricorn District of Limpopo Province. Stochastic Frontier Production Function was used to identify the socio-economic characteristics that contribute to broiler production and to determine the level of resource-use efficiency by smallholder farmers. Value chain analysis (VCA) was used to identify value chain actors and the position of smallholder broiler farmers along the value chain. Descriptive statistic results revealed that most smallholder broiler farmers are mostly female (79%) and more than 65 % are over the age of 31. The broiler input cost analysis indicated that feed cost contributed the highest expenditure (60%) in smallholder broiler production. Socio-economic factors such as educational level, experience in broiler production, access to credit, gender, access to transport, and age, were significant at different levels and therefore affect broiler production by smallholder farmers. The study also found that farmers in the study area were underutilising their resources with resource-use efficiency varying from 97% to 8%. Several constraints that v prevent smallholder broiler farmers from accessing the high value chain markets were identified. On the basis of the findings, it is recommended in this study that efforts be made to incentivise younger and energetic farmers to participate in broiler farming, government and the private sector should invest in research in order to establish alternative cheaper feeds to help reduce overall production costs, and the need for improved access to credit in order to enhance the working capital of farmers. Furthermore, the establishment of information sharing marketing cooperatives, slaughtering, processing and packaging facilities for smallholder broiler farmers in the study area will improve access to high value chain markets.