Impacts Of, And Farmer Responses To, Banana Industry Deregulation Evidence From Lower South Coast Banana Farmers

A survey of28 banana growers on the Lower South Coast (LSC) of KwaZulu-Natal showed that Banana Industry deregulation led to increased price variability and farm financial stress. This made farmers more aware of the need to improve their marketing skills, consider product diversification and improve fiuit quality. Respondents rated their willingness to take marketing risk as low relative to other fanners. Discriminant analysis identified growers who were more likely to be affected by the abolition of the Banana Board as those who (1) previously marketed most of their quality fiuit through the Board, (2) were less willing to take production risks, (3) were not sole owners of their fann business, (4) perceived the marketing potential on the LSC to be poor, and (5) had relatively high debt-asset ratios. After the Board was abolished, most fanners still chose not to market the fiuit themselves (due to relatively high opportunity cost of their time and low rating in product marketing skills relative to other fanners), but rather used marketing agents. Faced with increased price risk, farmers improved their market bargaining power with the agents by voluntarily fanning a private CO-Operative, which also provided them with more market information and