Antecedents to market access for emerging enterprises : a focus on the South African soybean industry

Abstract

In Sub-Saharan Africa, 70% of the population depend on agriculture for their livelihoods and small farms make up the majority of total farming area. From a domestic perspective, South Africa currently faces the triple challenges of poverty, inequality and unemployment. The agricultural sector and the greater agricultural value chain, offer a significant opportunity to address each of these challenges. In order to this, the issue of market access for emerging farmers needs to be addressed. There is a body of literature on the barriers to market access for emerging farmers. These impediments to market access are not new to South African policymakers and yet numerous economic reforms have failed to unlock market access for emerging farmers. It therefore became worthwhile to continue researching to uncover the antecedents to market access for emerging farmers with the South African soybean sector as the focal point. A qualitative, exploratory research method was utilised to develop new insights and provide detailed explanations about the antecedents to market access. 14 semi-structured, in-depth interviews with participants from three participant groups were conducted. Data was analysed with the purpose of identifying themes and common insights which emerged out of the interviews conducted. Data analysis was conducted by means of a thematic analysis. The findings of the research supported the barriers to market access as identified in the literature. This research however went further and interviewed the market as well as government officials. The contrasting and analysis of these three different views provided rich insights. This research adds to the existing literature by identifying the key support mechanism which support market access and simultaneously alleviate the concerns raised by the providers of off-take agreements. Ultimately, the research identified six antecedents to market access for emerging farmers in the South African soybean industry. These are: (1) Equipment (farmer mechanisation centres or otherwise), (2) Irrigation schemes (3) Responsible land restitution; (3) Training and mentorship for compliance with food safety standards; (4) Training with respect to networking and marketing skills; (5) Subsidised Transportation. When coupled with supportive policies, these antecedents will ultimately assist government to see much more tangible and positive impact on emerging farmers, te agricultural sector, and on the economy.