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Rural economic growth linkages and small scale poultry production: A survey of producers in KwaZulu-Natal

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  • Wynne, Adrian T.
  • Lyne, Michael C.
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    Abstract

    This study analyses survey data gathered from small and large poultry producers in the rural areas of KwaZulu-Natal, and highlights factors constraining the impact of commercial poultry production on the local economy. It was found that small-scale poultry production has the ability to initiate economic growth through the "export" of its products and to draw under-utilised resources such as labour into production. The impact of the subsequent multiplier effect is most likely strongest in the non-tradable, non-agricultural sector. Alleviating constraints for a large number of small enterprises is expected to impact more positively on the rural economy than if a few larger enterprises were encouraged to grow bigger. The descriptive results suggest that small producers face much higher transaction costs than larger producers. Government policies should focus on absorbing some of these transaction costs to nurture economic growth in the rural areas of KwaZulu-Natal, i.e. by improving education, physical infrastructure and technology transfer through extension. Other important interventions include the provision of mentoring and training services for new managers including institution, legal and financial management instruction.

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    Bibliographic Info

    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 43 (2004)
    Issue (Month): 1 (March)
    Pages:

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    Handle: RePEc:ags:agreko:9468

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    Web page: http://www.aeasa.org.za/
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    Keywords: Livestock Production/Industries;

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    1. Moraka Makhura & Frank Goode & Gerhard Coetzee, 1998. "A cluster analysis of commercialisation of farmers in developing rural areas of South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 15(3), pages 429-448.
    2. Christensen, Garry, 1993. "The limits to informal financial intermediation," World Development, Elsevier, vol. 21(5), pages 721-731, May.
    3. Sheryl Hendriks & Michael Lyne, 2003. "Agricultural growth multipliers for two communal areas of KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 20(3), pages 423-444.
    4. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-62, April.
    5. Alwang, Jeffrey & Siegel, Paul B. & Jorgensen, Steen L., 1996. "Seeking guidelines for poverty reduction in rural Zambia," World Development, Elsevier, vol. 24(11), pages 1711-1723, November.
    6. Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
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