Effect of enterprise development support program on market participation and profit efficiency of indigenous vegetable production in South Africa

Abstract

African indigenous vegetables (AIVs) play a very significant role in food security of poor households. However, some AIVs are still underutilised in many African countries. The aim of this study was to analyse the effect of farm support program on market participation and profitability of AIV production in South Africa. Data were collected from 86 AIV farmers from South Africa. Probit regression and Stochastic Frontier efficiency analyses were employed for data analyses. The results revealed that infrastructure support assisted farmers to improve participation in markets. In addition, engagement in growing spinach and amaranth vegetables, farm income, gender, cooperative membership and access to EDSP significantly increased the probability of participating in informal markets (p<0.05). Also, the determinants of indigenous vegetable farmers’ profit were seed input, land area cultivated, interactions of fertilizer with fertilizer, seed with seed and fertiliser with seed. Profit efficiency was significantly influenced by farm distance, road conditions and access to EDSP. It was concluded that EDSP enhanced farmers’ access to informal markets and profit efficiency.