Comparing prices received by participating and non-participating farmers in the custom feeding initiative of the National Red Meat Development Programme: A case of Kwa Zulu Natal Province

M. Lubinga, N. Mazibuko and K. Sotsha

No 277396, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: We seek to evaluate how the National Red Meat Development Program has impacted on livestock farmers in the rural communities of South Africa. Specifically, we compare whether the average weight of cattle that benefit through the Custom Feeding Programme (CFP) initiative differs from that of their counterparts. In addition, we compare the average price received by farmers whose cattle are fed at the CFP facility versus what non-participating farmers earn. A two-sample t test was used to test the hypotheses. Findings indicate that cattle sold through the CFP facility weigh more than those sold through non-CFP facilities. Generally, CFP participating farmers receive higher incomes from cattle sales but when we took into consideration of the R800 fee paid per animal sold through the CFP facility, results were insignificant t (499) = 0.83, p = 0.41. This implies that higher mean price of about R125 received by farmers participating in CFP did not differ from the prices received by non-participants. Conclusively, the NMRDP plays a vital role in enabling farmers to gain access into the formal cattle market. As recommendation, the NMRDP team should devise means to reduce the R800 fee per animal sold through the CFP facility. Acknowledgement : Input provided by members of the National Read Meat Development Programme (NRMDP) team, especially Dr Ngetu Xolile, Mrs Khumbuzile Mosoma, Ms Thendo Ndou and the field officers as well as other stakeholders is duly acknowledged.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2018-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277396

DOI: 10.22004/ag.econ.277396

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