Socio-economic determinants of smallholder maize farmers’ participation in global value chains in South Africa

Abstract

Smallholder agriculture is crucial for sustaining rural livelihoods across South Africa; nevertheless, involvement in global value chains (GVCs) is still restricted. This study examines the socio-economic determinants affecting the incorporation of smallholder maize farmers into global value chains in the Eastern Cape, a region marked by significant rural poverty and dependence on agriculture. The study evaluates the engagement levels of 200 farmers by a cross-sectional survey and multinomial logistic regression analysis. Findings indicate that elevated education levels and income substantially enhance the probability of moderate involvement in value chains; yet, no farmers attained complete participation owing to institutional impediments, including the absence of export permits. These findings indicate that human characteristics alone are inadequate; structural barriers are also essential. The report advocates for structural reforms, particularly those aimed at enhancing education, broadening market access, and eliminating licensing obstacles, to foster inclusive and sustainable participation of smallholder farmers in global value chains.

Keywords: {'name': 'Smallholder farmers; maize; socio-economic factors; global value chains; market participation; Eastern Cape; South Africa; agricultural policy'}

Authors & affiliations

Aneza Madini
Student

Thembalethu Macdonald Seti
Cape Peninsula University of Technology

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