IMPACTS OF, AND FARMER RESPONSES TO, BANANA INDUSTRY DEREGULATION: EVIDENCE FROM LOWER SOUTH COAST BANANA FARMERS / IMPAK VAN, EN BOERE SE REAKSIE OP DEREGULASIE VAN DIE PIESANGBERYF: ONDERVINDING VAN PIESANGBOERE VAN DIE LAER SUIDKUS

Abstract

A survey of 28 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 fruit quality. Respondents rated their willingness to take marketing risk as low relative to other farmers. 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 fruit through the Board, (2) were less willing to take production risks, (3) were not sole owners of their farm 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 farmers still chose not to market the fruit 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, farers improved their market bargaining power with the agents by voluntarily forming a private co-operative, which also provided them with more market information and

'n Opname onder 28 piesangkwekers aan die Laer Suidkus (LSK) van KwaZulu-Natal het getoon dat dereplasie van die piesangbedyf gelei het tot groter prysskommelings en finansiële spanning op plase. Dit het boere meer bewus gemaak van die noodsaak om hulle bemarkingsvaardighede te verbeter, produkvertakking te oorweeg en vruggehalte te verbeter. Respondente het hulle bereidwilligheid om bemarkingsrisiko's te loop in vergelyking met ander boere laag aangeslaan. Diskriminerende ontleding het kwekers uitgenys wat waarskynliker geraak sou word deur die afskaffing van die Piesangraad as diegene wat (1) voorheen die meeste van hulle gehaltevrugte deur die Raad bemark het, (2) minder bereidwillig was om produksierisiko's te loop, (3) nie alleeneienaars van hulle plaasbesigheid was nie, (4) die bemarkingspotensiaal aan die LSK as swak beskou het, en (5) betreklik hoë skuld-bateverhodings gehad het. Na die Raad afgeskaf, is het die meeste boere steeds verkies om nie die vrugte self te bemark nie (weens betreklik hoë geleentheidskoste van hulle tyd en swak bemarkingsvaardighede relatief tot ander boere), maar liefs bemarkingsagente gebruik. Gekonfronteer met verhoogde prysrisiko het boere hulle markbedingingsmag by die agente verbeter deur vrywilliglik 'n privaat koöperasie te vorm wat aan hulle ook meer markinligting verskaf en vrugteverpakking en vervoer na die agente gekoördineer het.