Adoption and Profitability of Soybean Production among Smallholder Farmers in South Africa: A case of Bergville in Okhahlamba Local Municipality, Kwa-Zulu Natal

Mkhutshwa Simamkele, Mushunje Abbyssinia and Chaminuka Petronella

No 364827, 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa from African Association of Agricultural Economists (AAAE)

Abstract: The study aimed to determine demographic, and socioeconomic factors affecting the adoption of soybean production and its profitability among smallholder farmers in South Africa, particularly in Bergville in Okhahlamba Local Municipality, Kwa-Zulu natal. A sample size of 81 respondents was purposively selected and from the sample 58.2% of the respondents were soybean adopters and 47.98% were non-adopters. A logistic regression model was used to analyze the factors affecting adoption and a gross margin analysis was used to determine the profitability of soybean production on the adopters. The logistic regression results revealed that only total farm size, bank credit access, and membership to a farmer organization were significant in influencing soybean adoption at 10% and 1% significance levels. Bank credit access had a negative relationship with soybean adoption, and total farm size, and membership to a farmer organization had a positive relationship with soybean adoption. The gross margin results were positive which indicated that soybean production was profitable for the smallholder farmers in the study area. Based on the results the study recommends that government stakeholders and extension practitioners should encourage more involvement of smallholder farmers in farmer organizations to enhance their adoption potential of soybean production. Land redistribution should be given a priority because land ownership will encourage adoption and also increase accessibility to bank credits. Although gender was not significant, women were most likely to adopt soybean therefore priority should be given to them for women empowerment.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 24
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaae23:364827

DOI: 10.22004/ag.econ.364827

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