Improving smallholder livestock farmers’ incomes through value chain financing in South Africa

Christopher D. Fakudze and Charles Machethe

Development in Practice, 2015, vol. 25, issue 5, 728-736

Abstract: Separating the commercialisation of agriculture from other programmes to improve access to formal credit for smallholder farmers is a source of dramatic failures of most programmes. Despite the popularity of value chain financing, livestock agriculture remains marginalised. This paper analyses the MAFISA-NERPO Livestock Credit Scheme, a scheme which provides value chain financial products in order to improve the cash incomes of smallholder farmers in South Africa. Evidence shows that more than 80% of participating farmers receive average annual incomes of US$30,000. This implies that this scheme has addressed those factors hindering effectiveness and efficiency of smallholder credit institutions, using value chain finance.

Date: 2015
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DOI: 10.1080/09614524.2015.1047326

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