Dynamics of decline in small-scale sugarcane production in South Africa: Evidence from two ‘rural’ wards in the Umfolozi region

Abstract

Using evidence from two rural wards in the Umfolozi region, this paper critically investigates the dynamics and constraints of small-scale sugarcane production under conditions of decline. The rapid decline in small-scale sugarcane production was historically underwritten by regulatory reforms that paired processes of enhanced representational inclusion with measures of rationalisation, resulting in deteriorating terms of exchange and the retraction of intensive interventions in production by sugar millers (Dubb 2013). Together with drought, these changes severely undermined the efficiency of capital services offered by local tractor-owning contractors and the productivity of small growers as a whole, while social grants have acted as a barrier to intensifying the exploitation of neighbours. The resultant cost-price squeeze has rendered cane an increasingly unattractive site of investment of labour and wages, and witnessed the severe decline or exit of most growers. For some, social grants have nonetheless provided a consumptive base from which to commit homestead labour without drawing down on cane proceeds, and hence enabled them to 'hang in' or marginally 'creep-back' into production. Only contractor-growers have managed to increase production, but this in turn is premised on the precarious cross-subsidization of their dual enterprises.

Large‐scale land acquisitions and institutions: Patterns, influence and barriers in Zambia

“…Investment concentration on commercially dominant commodities such as sugar cane, however, suggests transitional challenges for small‐holders in the emerging agro‐vision (Peters, ). Value‐chain commodities such as sugar that require specialised production knowledge and respond to global dynamics mean the level of small‐holder interaction with these crops remains peripheral (Dubb, ). The extent to which farmers see new crops in this vision as the basis on which to build sustainable livelihoods, as well as their willingness to work under new contractual arrangements, become crucial (Di Matteo et al., ).…”

Outgrower schemes, livelihoods and response pathways on the Zambian ‘sugarbelt’

“…Contrasting experiences in Jatropha (Achten et al 2010), sugarcane as capital intensive crop makes it even more difficult for smallholders to limit initial investments and control start-up risks. The resulting centralised processing setups render production not only large-scale but also limit pathways for gains among smallholders particularly in shareholding variant (Dubb et al 2015).…”

The Rise and Decline of Small‐Scale Sugarcane Production in South Africa: A Historical Perspective

“…Evidence from two wards in the Umfolozi region suggests that the devolvement of oversight and coordination over capital services by contractors (largely in transport, planting and cutting services) has critically undermined small growers’ productivity as a group. Moreover, together with the absence of ‘teams of labourers’ organized by the mills and the role played by social grants in mitigating the desperation of grower and non‐grower homesteads alike, low returns to cane have further limited small growers’ propensity for and interest in commensurately intensifying the exploitation of family and neighbour's labour, particularly where employment opportunities are available, or to reinvest wages into cane production (Dubb ).…”