ECONOMIES OF SCALE FOR SMALL AND LARGE SUGAR CANE FARMS IN KWAZULU-NATAL / EKONOMIE VAN SKAAL VIR GROOT EN KLEIN SUIKERRIETPLASE IN KWAZULU-NATAL

Abstract

This paper gives a profile of a sample of a small and large sugar cane farms in the North coast region of the KwaZulu-Natal sugar cane belt. The survey was conducted during May 1995. Farms studied varied between one and 600 hectares. Values for small farms were significantly lower than large farms for human capital resources, farm resource utilisation, rate of search and utilisation of farm information, and adoption of appropriate and improved cultural farm practices. Such differences may account for the differences in farm productivity between small and large farms that exist in the South African sugar industry. A linear discriminant function model shows that small and large farms studied differ significantly on lines of human resources and cost of borrowed capital (market related). The findings of the study show that large cane farms face lower market related interest rates, are relatively better equipped in human resource capital, and are in a position to implement appropriate and recommendable farm practices (soil analysis and use of certified seedcane) compared to small farmers.

Hierdie studie bied 'n profiel van 'n monster van klein en groot suikerrietplase in doe Noordkusstreek van die KwaZulu-Natal suikerrietstrook. Die opname is gedurende Mei 1995 gedoen. Bestudeerde plase het tussen een en 600 hektaar gewissel. Waardes vir klein plase was aansienlik laer as vir groot plase wat betref menslikekapitaalhulpbronne, plaashulpbronbenutting, bekom en benut van plaasinligting, en aanvaarding van toepaslike en verbeterde kweekpraktyke op die plaas. Sulke verskille mag die verskil in plaasproduktiwiteit tussen klein en groot plase verklaar wat in die Siud-Afrikaanse suikerbedryfbestaan. 'n Linêre diskrimineringsmodel toon dat bestudeerde klein en groot plase aansienlik verskil wat menslikehulpbronkapitaal en die koste van geleende kapitaal (markverwante) betref. Die bevindings van die navorsing toon dat groot suikerrietplase laer markverwante rentekoerse ondervind, relatiefbeter toegerus is met menslikehulpbronkapitaal en in 'n beter posisie is om toepaslike en aanbevole landboupraktyke (grondontleding en gebriuk van gersertifiseerde saadriet) toe te pas in vergelyking met klein plasies.