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A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa

Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializi...

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Autores principales: Nkadimeng, Mapule Valencia, Makombe, Godswill, Mapiye, Obvious, Mapiye, Cletos, Oluwatayo, Isaac, Dzama, Kennedy, Mojapelo, Cedric, Mollel, Naftali, Ngambi, Jones, Mautjana, Madimetja Human
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8224916/
https://www.ncbi.nlm.nih.gov/pubmed/34166430
http://dx.doi.org/10.1371/journal.pone.0253657
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author Nkadimeng, Mapule Valencia
Makombe, Godswill
Mapiye, Obvious
Mapiye, Cletos
Oluwatayo, Isaac
Dzama, Kennedy
Mojapelo, Cedric
Mollel, Naftali
Ngambi, Jones
Mautjana, Madimetja Human
author_facet Nkadimeng, Mapule Valencia
Makombe, Godswill
Mapiye, Obvious
Mapiye, Cletos
Oluwatayo, Isaac
Dzama, Kennedy
Mojapelo, Cedric
Mollel, Naftali
Ngambi, Jones
Mautjana, Madimetja Human
author_sort Nkadimeng, Mapule Valencia
collection PubMed
description Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializing smallholder livestock producers. The Limpopo Industrial Development Corporation (IDC) Nguni Cattle Development Project is an example of such effort. The economic performance of these efforts needs to be evaluated. We use gross margin analysis to evaluate the performance of the Limpopo IDC Nguni Cattle Development Project. Additionally, we use regression analysis to identify factors influencing gross margins. Our results indicate that although smallholders show potential to commercialize, they lack commercial farming experience and require that a strong extension support system be used as one of the strategies to improve profitability. We also noted that individual farmers were more profitable than group farmers. Multiple regression analysis shows that three variables could be used to stimulate gross margin among the Limpopo IDC Nguni Cattle Development Project farmers. These are herd size, distance to market and farm size. Since farm size is a given, policy should focus on assisting farmers to build their herds and to have better access to markets.
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spelling pubmed-82249162021-07-19 A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa Nkadimeng, Mapule Valencia Makombe, Godswill Mapiye, Obvious Mapiye, Cletos Oluwatayo, Isaac Dzama, Kennedy Mojapelo, Cedric Mollel, Naftali Ngambi, Jones Mautjana, Madimetja Human PLoS One Research Article Factors such as increases in population, urbanization, growth in per capita income and changes in consumer taste and preferences are causing gradual increases in livestock product consumption and demand. South Africa is addressing this predicted increase in livestock products demand by commercializing smallholder livestock producers. The Limpopo Industrial Development Corporation (IDC) Nguni Cattle Development Project is an example of such effort. The economic performance of these efforts needs to be evaluated. We use gross margin analysis to evaluate the performance of the Limpopo IDC Nguni Cattle Development Project. Additionally, we use regression analysis to identify factors influencing gross margins. Our results indicate that although smallholders show potential to commercialize, they lack commercial farming experience and require that a strong extension support system be used as one of the strategies to improve profitability. We also noted that individual farmers were more profitable than group farmers. Multiple regression analysis shows that three variables could be used to stimulate gross margin among the Limpopo IDC Nguni Cattle Development Project farmers. These are herd size, distance to market and farm size. Since farm size is a given, policy should focus on assisting farmers to build their herds and to have better access to markets. Public Library of Science 2021-06-24 /pmc/articles/PMC8224916/ /pubmed/34166430 http://dx.doi.org/10.1371/journal.pone.0253657 Text en © 2021 Nkadimeng et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Nkadimeng, Mapule Valencia
Makombe, Godswill
Mapiye, Obvious
Mapiye, Cletos
Oluwatayo, Isaac
Dzama, Kennedy
Mojapelo, Cedric
Mollel, Naftali
Ngambi, Jones
Mautjana, Madimetja Human
A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa
title A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa
title_full A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa
title_fullStr A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa
title_full_unstemmed A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa
title_short A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa
title_sort gross margin analysis for nguni cattle farmers in limpopo province, south africa
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8224916/
https://www.ncbi.nlm.nih.gov/pubmed/34166430
http://dx.doi.org/10.1371/journal.pone.0253657
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