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Rural Economic Growth Linkages and Small Scale Poultry Production: A Survey of Poultry 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-scale 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 by "exporting" its products and can draw under-utilised resources such as labour into production. The impact of the subsequent multiplier effect is generally 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 higher transaction costs. Government policies should focus on absorbing some of these transaction costs by improving education, physical infrastructure and technology transfer. 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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    File URL: http://purl.umn.edu/19095
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    Bibliographic Info

    Paper provided by Agricultural Economic Association of South Africa (AEASA) in its series 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa with number 19095.

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    Date of creation: 2003
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    Handle: RePEc:ags:aeassa:19095

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

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    1. Christensen, Garry, 1993. "The limits to informal financial intermediation," World Development, Elsevier, vol. 21(5), pages 721-731, May.
    2. Staal, Steven & Delgado, Christopher & Nicholson, Charles, 1997. "Smallholder dairying under transactions costs in East Africa," World Development, Elsevier, vol. 25(5), pages 779-794, May.
    3. Hazell, P. B. R. & Roell, Ailsa, 1983. "Rural growth linkages: household expenditure patterns in Malaysia and Nigeria," Research reports 41, International Food Policy Research Institute (IFPRI).
    4. Louise Fenwick & Mike Lyne, 1999. "The relative importance of liquidity and other constraints inhibiting the growth of small-scale farming in KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 16(1), pages 141-155.
    5. Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
    6. 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.
    7. 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.
    8. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-62, April.
    9. Haggblade, Steven & Hazell, Peter & Brown, James, 1989. "Farm-nonfarm linkages in rural sub-Saharan Africa," World Development, Elsevier, vol. 17(8), pages 1173-1201, August.
    10. Madikizela, S.P. & Groenewald, Jan A., 1998. "Marketing Preferences And Behaviour Of A Group Of Small-Scale Irrigation Vegetable Farmers In Eastern Cape," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(1), March.
    11. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
    12. 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.
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