Agriculture based clusters : a model to stimulate South Africa s rural small-scale farming sector

Abstract

Unemployment in South Africa is a major problem and the marginal economic growth has not stimulated job creation. The problem is skewed to the rural communities. As the most labour absorptive sector, agriculture is best placed to help address this challenge. However, to become a viable globally competitive sector rural small-scale farmers need Government policy certainty and support; cluster creation is a means for small-scale farmers to be provided the required support. An exploratory study was conducted on Western Cape Wine cluster members and relevant Government employees. This study sought to identify behaviours and enablers instrumental in this cluster s success; while the Government employees clarified South Africa s official readiness for cluster implementation. The cluster abundantly evidenced : strong linkages, competition coupled with cooperation, connectedness among all the players as well as knowledge spill-over. These elements were enabled by historical support, primarily in research. The Government Departments, however, displayed paucity in these very behaviours, thus failing to maximise on efforts they made. Cluster members bemoaned the debilitating frequent changes in policy. Unless this crucial enabler together with the provision of infrastructure for creating connected communities is provided by collaborating Government Departments, South Africa s small-scale farmers cannot enjoy the benefits of clustering.