Empowerment of black farmers and effectiveness of empowerment initiatives in the South African potato industry

Abstract

One of the biggest challenges gripping the South African economy and society as a whole is the dualism that has arisen as a result of previous regimes’ disempowering legislation and attitudes towards black people. This is particularly evident in the agricultural sector which is characterised, on the one hand, by large commercial farms (mainly in white hands) and, on the other, by much smaller subsistence farms (mainly in black hands) which lack the physical and financial resources as well as the expertise to develop profitable and sustainable operations. The potato industry in South Africa is a notable casualty of this historically induced dualism and today lags behind several other industries in the agricultural sector in terms of empowerment-related activities and results. What has exacerbated the situation is that although a great deal of money has been invested since 1994 in empowerment initiatives in this industry through the collection and allocation of statutory levies, the benefits of such levies (a proportion of which must be channelled into empowerment activities) are reserved for the members of Potatoes South Africa (PSA), the non-profit commodity organisation representing the potato industry. However, of the estimated 2000 to 3000 black potato farmers in South Africa, just over 30 are members of PSA and are therefore entitled to PSA’s development programmes and service offerings. The others have not been given serious consideration by institutional role players and have been effectively side-lined at the policy-making level. Nevertheless, judging from rising sales of potato seeds to black farmers, the numbers of black potato farmers continue to grow. This signals an underlying drive and momentum that needs to be better understood and harnessed. The purpose of this study was to examine the state of empowerment among black potato farmers and the effectiveness (or otherwise) of empowerment initiatives in the South African potato industry. The study used a cross-sectional and mixed-method research design which involved the use of a survey questionnaire (to which 132 farmers responded) as well as qualitative and quantitative research approaches. The data collected were analysed with a view to arriving at descriptive and inferential research outputs. Among the key findings was that empowerment is narrowly defined and applied in South Africa, with the focus on economic empowerment only (largely through the national B-BBEE strategy). Yet such an approach is inherently limiting, since the state of disempowerment of many black smallholder farmers has complex origins which call for well-rounded solutions. In particular, the exclusion of non-PSA members from PSA’s empowerment support services serves to perpetuate most black farmers’ under-performance and economic marginalisation. Though many farmers are valiantly trying to go it alone, potato farming is a complex undertaking which requires conducive climatic conditions and specialised equipment and skills. Without technical support in some form or another, access to finance for operational and/or expansion purposes and access to viable markets, the chances of black smallholder potato farmers improving their livelihoods are very poor. The question of land tenure lies at the heart of the problems experienced by black smallholder potato farmers as most operate under a permission-to-occupy (PTO) arrangement in which a tribal authority allocates land for use by black farmers but the latter do not own the land. In the absence of collateral, many farmers do not qualify for loans or credit facilities from formal financial institutions. They therefore get trapped in a cycle of under-investment and underperformance, However, over and above finance, the development of skills and capacity are also crucial elements in the effective farming mix. These, however, are in short supply among the black smallholder potato farming community. Experiences and lessons to date make a strong case for black smallholder potato farmers to be given sharper attention at the policy-making level, since potatoes, being a staple food in South Africa, should be making a significant contribution to food security in vulnerable or neglected communities. Among the recommendations made is that a conceptual framework for the empowerment of black potato farmers should be developed and endorsed by all role players, with the primary focus areas being transformation, capacity-building and entrepreneurship. Entrepreneurship is an essential ingredient in becoming and remaining competitive in a constantly changing world. It also creates more and better job opportunities and can be a magnet for investment and trade – areas in which South African agriculture is currently deficient.