The role of cooperative membership in improving global value chain participation among smallholder maize farmers in the Eastern Cape, South Africa

Abstract

Maize serves as South Africa's principal staple crop; yet, smallholder farmers in the Eastern Cape encounter persistent obstacles, such as low productivity and restricted market access. Cooperatives are often advocated to enhance livelihoods and facilitate farmers' integration into global value chains, however their efficacy remains contentious. This study investigates the impact of cooperative membership on maize market participation. A multi-stage stratified random sample of 200 farmers, comprising both cooperative members and non-members, was drawn from towns having functioning maize cooperatives. Data were collected via pre-tested questionnaires and analysed using a probit logistic regression model that accounts for socioeconomic and institutional variables. The findings demonstrate that cooperative participation exerts a substantial influence (β = 1.485, p = 0.102). Nonetheless, it lacks statistical significance at conventional thresholds. This indicates that although cooperative membership may enhance the probability of participating in formal markets, it does not ensure substantial involvement independently. Conversely, variables such as education, income, and employment position serve as more robust markers of engagement. The study indicates that while cooperatives promote collective action, it is essential to enhance governance, digital inclusion, and institutional support to enable effective integration into global value chains.

Keywords: {'name': 'Smallholder Farmers, Cooperative Membership, Market Participation, Global Value Chains, South Africa'}

Authors & affiliations

Aneza Madini
Cape Peninsula University of Technology

Thembalethu Macdonald Seti
Cape Peninsula University of Technology

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