Agriculture Reference
In-Depth Information
Analysis of Production and Consumption of Organic Products in South Africa
http://dx.doi.org/10.5772/58356
partially-certified organic farmers. This is a confirmation of previous findings in this study
that explains the non-adoption of certified organic farming by the non-organic farmers. In the
risk neutral to preferring category, the non-organic farmers constitute only 14. 3%. Fully-
certified organic farmers constituted 57. 1% and partially-certified organic farmers constituted
28. 6%.
100
14.3
90
20
23.1
26.7
80
44.4
55.6
28.6
70
20
13.3
29.2
Legend
60
Non-organic
Partially-certified organic
Fully-certified organic
50
40
22.2
30
60
60
57.1
55.6
47.7
20
22.2
10
0
Extreme
Severe
Intermediate
Moderate
Slight to
neutral
Neutral to
preferring
Figure 4: Frequency distribution within risk aversion classes across the farmer groups
Figure 4.
Frequency distribution within risk aversion classes across the farmer groups
A comparison of the results from the South African study, which applied the general experi‐
mental method, with similar studies using the same methodology was for farming commun‐
ities in the Côte d'Ivoire [38], Ethiopia [39], Zambia [40], Philippines [41] and India [31], shows
similarities in the findings of the studies done in India, Philippines, Zambia and Côte d'Ivoire,
where the majority of the respondents are classified as intermediate to moderate risk aversion
(Table 4). Similarly, these results suggest that farm households in South Africa are less risk
averse than in Ethiopia, Zambia and Côte d'Ivoire but are much more risk averse than in India
and Philippines.
Farmers identified their sources of risk and significance in terms of the potential impact to their
farming activity as presented in Table 5. The fully-certified organic farmers cited in order of
priority, uncertain climate (mean 2. 96), lack of cash and credit to finance inputs (mean 2. 78)
and tractor unavailability when needed (mean 2. 76). These risk sources have a direct bearing
on production of organic produce. Climatic conditions are beyond the farmers' control, and
the top ranking probably reflects the farmers' concerns about the effects of recent drought in
the Umbumbulu district. These impacts negatively on crop yield. Due to communal land
own
ership and strict conditions for credit, farmers have limited options
to obtain production
credit from financial institutions. Among the sampled farmers only 21 farmers were able to
access credit. Farmers in the study area lack collateral that is acceptable to banks. For example,
banks required title deeds as proof of land ownership but the majority of black farmers in
