Factors influencing the performance of emerging agricultural cooperatives in post-apartheid South Africa

Abstract

The purpose of this research was to identify the critical factors affecting the performance and sustainability of agricultural cooperatives in post-apartheid South Africa. There is great drive from government to implement a cooperative movement in South Africa (Lyne & Collins, 2008) in order to attempt to redress the legacy left by apartheid. Agricultural cooperatives have generally failed to operate sustainably in South Africa despite government having provided policy frameworks and other forms of assistance. This has significantly inhibited the transition of wealth and skills to the previously disadvantaged in the agricultural sector and rural communities. Research regarding agricultural cooperatives in South Africa has been conducted by authors such as Chibanda, Ortmann, & Lyne (2009) and Ortmann and King (2007b). These studies were used as a basis from which to identify the challenges faced by agricultural cooperatives as well as the interview questions posed to the respondents. Semi-structured interviews were used to collect data from both public and private organisations involved in agriculture and agricultural cooperatives development. Respondents comprised six senior officials from various organisations and government. The literature review concluded that a combination of three categories consisting of social and economic issues as well as particular problems inherent to cooperatives, are impacting sustainable agricultural cooperative development in South Africa today. The research confirmed the findings of the literature review but emphasised government’s role in the poor state of agricultural cooperatives. In addition, a fourth category emerged from the research. This is the basis on which agricultural cooperatives are being established for which both government and society- particularly rural and agricultural communities are responsible. The nature and complexity of these problems mean that a comprehensive and honest review of the situation by government and the relevant communities is required if the benefits inherent to agricultural cooperatives are to be exploited iii and utilised to relieve the dire circumstances facing the large portion of South Africa’s population today.