Growing wealth from nature: analyzing the profitability and determinants of high-value medicinal plants in smallholder production systems

Zusiphe Mbelebele, Lelethu Mdoda and Samuel Sesethu Ntlanga

Cogent Economics & Finance, 2024, vol. 12, issue 1, 2426536

Abstract: The revitalization of traditional medicine has intensified interest in medicinal plants; however, reliance on wild sources poses sustainability challenges. Despite the economic potential of medicinal plants, small farmers face challenges such as limited access to resources, capital, markets, and institutional support. The study examines the profitability of cultivating high-value medicinal plants by smallholder farmers in the Amatole District Municipality, Eastern Cape, South Africa. The research, based on data from 150 smallholder farmers (mostly literate women averaging 46 years old), shows a net farm income of ZAR 19,091.72 and a return on investment of 0.77 per growing period, indicating profitability despite obstacles. Factors influencing profitability include age, household size, farm size, and farming experience. Based on the study results, the study recommends policymakers and government interventions, such as improving market access, providing financial support, offering training, and enhancing institutional frameworks. It also stresses the importance of integrating cultural considerations and addressing knowledge gaps to empower smallholder farmers and optimize the economic benefits of medicinal plant cultivation, supporting sustainable rural development and economic growth.The research on Growing Wealth from Nature: Analyzing the Profitability and Determinants of High-Value Medicinal Plants in Smallholder Production Systems has significant implications for economic development and sustainable agriculture. This research study provides critical insights into the untapped economic potential of high-value medicinal plants within smallholder farming systems, emphasizing their role in driving sustainable rural development. By investigating the profitability and factors affecting medicinal plant cultivation, it addresses critical challenges in rural economies, especially in developing regions where smallholders are vital. The study demonstrates how farmers can capitalize on the high-value medicinal plant market to generate substantial income while promoting sustainable land use. It also highlights the potential of biodiversity conservation to drive rural prosperity, offering an eco-friendly alternative to traditional, resource-intensive farming. By identifying key profitability factors, such as market access, cultivation practices, and socio-economic conditions, the research provides actionable strategies to improve farmer livelihoods and scale production. In doing so, it contributes to both economic growth and environmental sustainability, offering a roadmap for policies that integrate biodiversity into smallholder economies, fostering long-term resilience and prosperity.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23322039.2024.2426536 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426536

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/OAEF20

DOI: 10.1080/23322039.2024.2426536

Access Statistics for this article

Cogent Economics & Finance is currently edited by Steve Cook, Caroline Elliott, David McMillan, Duncan Watson and Xibin Zhang

More articles in Cogent Economics & Finance from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().