Kurt Sartorius

Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?

This article examines a new role for contract farming in developing countries in the light of the industrialisation of agriculture and the globalisation of world markets. A theoretical rationale for contracting in developing countries is developed on the basis of adopting new institutional economic theory for the purpose of matching governance forms to market failure problems and transaction characteristics. The history of contract farming is reviewed, together with the advantages and disadvantages to the various players, for the purpose of developing a list of key success factors, problems and some possible solutions.

Human resource management and cultural diversity: a case study in Mozambique

A limited number of studies in Africa have reconciled human resource management (HRM) programs with cultural diversity as represented by Hofstedes cultural dimensions. The objective of this study is to examine how Western-based HRM can be modified to embrace cultural diversity in an African context. A mixed methodology employed a survey, as well as a case study in Mozambique. The results indicate high levels of power distance, collectivism, uncertainty avoidance, and feminism that are very similar to Kenya. These dimensions differed across a spectrum of employee levels illustrating cultural hybridization at firm level in a multinational operating in Africa. The results also illustrate the importance of a range of health, family, and societal beliefs in the workplace. Finally, a series of HRM recommendations were developed in an African context with respect to the selection, training, performance measurement, and management programs of the company.

Global and country underestimation of hepatocellular carcinoma (HCC) in 2012 and its implications

PURPOSE The problems of screening costs, as well as poor data, potentially lead to the underestimation of the incidence of hepatocellular carcinoma (HCC). In particular, this is problematic in developing countries with limited resources and poor data. The study develops a model to inform policy makers of the true incidence and potential extra cost of HCC in a developing country context. METHODS Using Globocan 2012 data, we employed an ecological correlation design at country level to associate HCC incidence data with relevant determinant data like HBV-HCV and other exposure factors. A Poisson regression model was used to estimate potentially missed incident cases of HCC by country and region based on the country risk factor covariate values. RESULTS The results indicated that HBV and HCV prevalence were significantly associated with HCC incidence (p<0.001) and potentially accounted for 94%% of incident HCC in 2012. We estimated a total of 120,772 potentially missed incident HCC cases in 2012. These cases are largely predicted for South Asia (>21,000), North Asia (>15,000), Western Africa (14,500) and Eastern Africa (12,500). CONCLUSIONS Developing countries, with poorer quality data and a high historical burden of hepatitis, were predicted to have the majority of missed HCC cases in 2012 based on our model. These countries are, therefore, less able to detect, budget for or manage HCC. The high cost of HCC treatment, as well as its economic implications, poses a challenge in resource poor settings.

Contracting arrangements in agribusiness procurement practices in South Africa

Abstract This paper presents an overview of contracting arrangements in agribusiness procurement practices in South Africa. The objective of this paper is to contribute to a better understanding of the structures and issues of raw commodity procurement in South African agribusiness supply chains. The results suggest that a wide range of institutions are employed to procure raw commodities for the South African agro-processing sector and that companies are increasingly moving away from the open market as a source of supply for raw commodities, and are utilising contractual arrangements instead. According to the main findings, 78.5% of the total volume of fruit and vegetables procured by agribusiness companies for processing is based on some form of contracting arrangement. The balance is procured through a combination of the open market, own estates, agents and imports. It is only in the case of potatoes, onions, beans and peanuts that a stronger reliance on the spot market is evident. South African retailers source 70% to 100% of their fresh produce directly from farmers (usually through growing programmes). The procurement of meat, poultry and eggs appears to favour vertical integration (and in some cases own production), medium- to long-term contracts and long-term informal supply arrangements with selected groups of farmers.

Black economic empowerment ownership initiatives: a Johannesburg Stock Exchange perspective

The success of black economic empowerment (BEE) is still not clear. The objective of this paper is to assess the results of BEE equity transfers and contribute to the development of a framework to assess the cost/benefit of transferring equity in this fashion. BEE data from 62 companies listed on the Johannesburg Stock Exchange were analysed using a qualitative methodology and descriptive analysis. The results indicate that respondent companies have transferred less than 25 per cent equity to BEE partners, that a majority of firms appear to support the social objectives of BEE, that external partners appear to best promote shareholder wealth, and that the primary source of funding for BEE equity transactions is third-party funding or the respondent companies themselves. Finally, the Malaysian experience of affirmative action offers some useful lessons for South Africas BEE programme, as well as some valuable insights into the economics of wealth redistribution.

Global infant mortality trends and attributable determinants – an ecological study using data from 192 countries for the period 1990–2011

BackgroundInfant mortality rate (IMR) is regarded as an important indicator of population health. IMR rates vary substantially with the highest found in sub-Saharan Africa (SSA) compared to the lowest in Europe. Identifying spatial disparities in IMR and quantifying attributable risk factors is essential for policymakers when tailoring time-appropriate interventions at a global, regional, and country level.MethodsData for 192 countries were extracted from the World Bank Development Indicator database for the period 1990–2011. Spatial clustering was used to identify significant higher-risk IMR countries. A robust ecological generalized linear negative binomial regression model was used to quantify risk factors and associated decomposition values (Shapley).ResultsSignificant reductions were observed in IMR for all of the World Health Organization regions for the period 1990–2011 except for SSA, which indicated a reversal of this trend in the 1990s due to HIV. Significant high-risk clustering of IMR is also indicated in SSA countries and parts of Asia. Maternal mortality (survival), lack of water and sanitation and female education were confirmed as prominent and high attributable risk factors for IMR. Distinct temporal changes in the attributability of these factors were observed, as well as significant heterogeneity with regards to the most attributable factor by region and country.ConclusionsOur study suggests that maternal mortality is the most prominent attributable risk factor for infant mortality, followed by lack of access to sanitation, lack of access to water, and lower female education. Variation exists across regions and countries with regards to the most attributable factor. Our study also suggests significant underestimation of IMR in regions known for poorer data quality. The results will aid policymakers in re-tailoring time-appropriate interventions to more effectively reduce IMR in line with Millennium Development Goal 4.

Rural poverty dynamics and refugee communities in South Africa : a spatial-temporal model

The assimilation of refugees into their host community economic structures is often problematic. The paper investigates the ability of refugees in rural South Africa to accumulate assets over time relative to their host community. Bayesian spatial–temporal modelling was employed to analyse a longitudinal database that indicated that the asset accumulation rate of former Mozambican refugee households was similar to their host community; however, they were unable to close the wealth gap. A series of geo-statistical wealth maps illustrate that there is a spatial element to the higher levels of absolute poverty in the former refugee villages. The primary reason for this is their physical location in drier conditions that are established further away from facilities and infrastructure. Neighbouring South African villages in close proximity, however, display lower levels of absolute poverty, suggesting that the spatial location of the refugees only partially explains their disadvantaged situation. In this regard, the results indicate that the wealth of former refugee households continues to be more compromised by higher mortality levels, poorer education, and less access to high-return employment opportunities. The long-term impact of low initial asset status appears to be perpetuated in this instance by difficulties in obtaining legal status in order to access state pensions, facilities, and opportunities. The usefulness of the results is that they can be used to sharpen the targeting of differentiated policy in a given geographical area for refugee communities in rural Africa. Copyright

CAN SMALL-SCALE FARMERS BE LINKED TO AGRIBUSINESS? THE TIMBER EXPERIENCE

Abstract The objective of this paper is to contribute to the design of agribusiness smallholder contracting linkages in South Africa. A fresh approach to design is adopted that combines a case study in the timber industry, the lessons of history and the economics of organisational architecture. The results confirm that the transaction characteristics of the grower-processor supply chain influence the level of managed co-ordination, that small-scale farmers generate incremental transaction cost and that medium and small-scale farmers can compete with larger growers in the supply chain. The results, however, are inconclusive with respect to the role of contracting as an institution to overcome the barriers of entry to the timber industry. A series of proposals are then developed in order to reduce transaction cost and achieve higher levels of contract enforcement in smallholder contracting arrangements with agribusiness. This paper concludes that large numbers of small-scale farmers can be effectively incorporated in the supply chain but only if specific measures are taken to reduce transaction cost.

The comparative performance of chartered accountancy students in South Africa: The impact of historical legacies

African students continue to underperform in South Africas schools and universities. This paper investigates the comparative performance of African chartered accountancy students from school to post-university level. The paper employed a mixed-method approach to analyse a series of cross-sectional datasets. The results showed that African students have underperformed at school, university and at post-university level, although the performance gap appears to be narrowing in the first professional chartered accountancy examination. The differential performance of these students was explained by poorer marks in mathematics and English that can be traced back to historical legacies in the education sector. South African universities, moreover, perpetuate this disadvantage because they have retained Eurocentric teaching approaches. In order to remove these barriers, tuition at school and university must be complemented by cross-cultural teaching practices and bridging programmes.

The cost efficiency of small farm inclusion in agribusiness supply chains

The inclusion of small-scale commercial farmers in South African agribusiness supply chains is a national priority and there is an urgent need for managerial accounting (MAS) inputs to successfully accomplish this objective. This paper explores ways that small farmers can be cost effectively incorporated in modern agricultural supply chains. A case study methodology is used to test the research questions. The results demonstrate that small-scale farmers can successfully compete with larger growers with respect to production and cost efficiency. The results also illustrate that small-scale farmers generate higher levels of transaction cost than medium and large scale suppliers. A series of proposals are then developed in order to reduce the transaction cost of small farm supply. In conclusion, small-scale farmers can be successfully incorporated in agribusiness supply chains but only if special measures are taken to reduce differential transaction cost.