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Abstract
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Article Information:
Determinants of Sugarcane Profitability: The Case of Smallholder Cane Growers in Swaziland
M.B. Masuku
Corresponding Author: Micah Masuku
Submitted: 2011 March, 10
Accepted: 2011 April, 20
Published: 2011 May, 25 |
Abstract:
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The sugar industry is the backbone of Swaziland's economy, with annual revenue exceeding E1440
million (US$ 160 million). As part of the agricultural as well as the manufacturing sector, industry, it a accounts
for 18% of the country’s GDP. Therefore, the economy of Swaziland is to a great extent based on the sugar
industry. This study presents empirical findings on the determinants of the profitability of sugarcane growers
in the Swaziland sugar supply chain. The study is based on data collected in 2001 from 124 smallholder cane
growers who supply sugarcane to the three sugar mills in Swaziland (Simunye, Ubombo (Bigbend) and
Mhlume). The study used purposive sampling, which is most desirable when certain important segments of the
target population are intentionally represented in the sample. The results of the study revealed that the
performance of these farmers is affected by farming experience, change in sucrose quota, yield per ha, sucrose
content and the distance from the farm to the mill. The implications of this study suggests, that smallholder
farmers need to be trained and motivated in order to be commercially oriented. The Swaziland Government
should play a role in providing smallholder cane growers with some training in business management skills and
in addressing issues of concern to farmers as they develop in order to improve their yields. This should be done
through the government extension agents, provided specifically to assist smallholder sugarcane farmers, and
the various government departments involved in providing training in business and management skills. There
is also a need to limit the production of sugarcane to areas, which are closer to the mills in order to reduce
transaction costs.
Key words: Cane growers, profitability, smallholder farmers, sugarcane, sugar industry, ,
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Cite this Reference:
M.B. Masuku, . Determinants of Sugarcane Profitability: The Case of Smallholder Cane Growers in Swaziland. Asian Journal of Agricultural Sciences, (3): 210-214.
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ISSN (Online): 2041-3890
ISSN (Print): 2041-3882 |
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