Agribusiness investments and postharvest losses in smallholder vegetable supply chains: insights from eThekwini municipality, KwaZulu-Natal.

Abstract

Smallholder agriculture, constituting over 60% of Africa's population, is vital for the continent's economy. However, it often faces neglect in development policies, hindering its potential contributions to income and welfare improvement. Postharvest losses, particularly in the vegetable supply chain, are a major challenge, with a 30–40% loss in sub-Saharan Africa's chain of fruits and vegetables. Moreover, over 10 million tons of annual food waste are reported in South Africa. These postharvest losses impact food availability and threaten agribusiness investment, discouraging local and foreign investors. Therefore, this study aimed to comprehensively investigate the dynamics of agribusiness investments, perceptions, and the impacts of postharvest losses within the smallholder vegetable supply chains, focusing on insights from smallholder farmers in the eThekwini Municipality in the KwaZulu-Natal Province. The study adopted a crosssectional research design and multi-stratified random sampling technique to gather primary data from 238 smallholder vegetable farmers through structured questionnaires in 10 district municipalities based on smallholder farmers' vegetable production intensity. Descriptive statistics revealed that most (56%) of the farmers are females with an average of 45 years and a household size of 5 members. Farmers spent an average of 12 years in school, mostly unemployed (76%), relying on farming for income (78%), and earning an average monthly income of R8,568.37. The Zero-inflated Poisson model was used to estimate the drivers of postharvest losses. The results indicated that demographic factors such as age and household size positively influence postharvest losses, with older farmers and larger households experiencing higher rates of PHLs. Conversely, higher educational levels, greater farm experience, and access to extension services are associated with reduced PHLs. The Ordered Probit Model (OPM) revealed that older farmers and those with larger household sizes experience more severe postharvest losses. In contrast, higher education levels, greater farm experience, and access to extension services are associated with reduced severity of losses. Specifically, an increase in household size decreases postharvest loss severity during harvesting but increases it at the market stage. Each additional year of schooling decreases loss severity during harvesting but increases it at the market stage. An increase in the distance from the market decreases loss severity during harvesting but increases it during transportation and at the market stage. Using the Log-linear regression model, the study delved into the principal causal factors contributing to PHLs along the vegetable supply chain. The log-linear regression analysis reveals several factors significantly impacting postharvest losses among smallholder vegetable farmers in eThekwini Municipality. Adverse weather conditions emerge as a major determinant, significantly increasing postharvest losses at both the harvest and market stages due to crop damage and unfavourable handling conditions. The analysis also highlights that greater distance to markets exacerbates postharvest losses by prolonging travel times and stressing inadequate infrastructure, affecting the availability and price of fresh produce. Farm experience is crucial in reducing losses, as experienced farmers employ more effective practices. Conversely, older farmers face challenges in adopting modern postharvest management practices, resulting in increased spoilage and waste at the market stage. The relationship between agribusiness investments and postharvest losses among smallholder vegetable farmers was also explored using Ordinary Least Squares (OLS), which revealed that investing in transport infrastructure, providing financial support, and managing input costs are crucial for mitigating postharvest losses (PHLs) in the vegetable supply chain. Improved transport infrastructure reduces PHLs by 61%, financial support decreases PHLs by 54%, and managing input costs reduces PHLs by 23%. These strategic investments enhance efficiency, profitability, and sustainability, benefiting smallholder farmers and the broader agricultural economy. Additionally, the study looked at the environmental impact of postharvest losses along the vegetable supply chain: the case of smallholder vegetable farmers. Greenhouse gas emissions were quantified using the IPCC principles. The findings suggested that the greenhouse gas emissions generated by the tractor during ploughing were estimated at 0.0159349 metric tons of CO2, indicating a low level of emissions. Furthermore, emissions resulting from crop residues were calculated for each crop, with cabbage emitting 72.8063 kgCO2- eq and spinach emitting 83.2072 kgCO2-eq. Emission from other crops was also estimated, and the cumulative total greenhouse gas emissions amounted to 2256.9963 kgCO2-eq. Lastly, Multinomial Endogenous Switching Regression (MESR) provided significant insights into the impact of postharvest losses (PHLs) on farm income at different stages of the vegetable supply chain. The estimated treatment effects highlight that PHLs during the harvesting, transportation, and marketing stages substantially negatively impact farm income. Based on these findings, it is recommended that policymakers and stakeholders adopt a multifaceted approach to address the critical challenges identified in the smallholder vegetable farming sector. Primarily, targeted interventions should be prioritized to mitigate the pervasive issue of postharvest losses. This entails strategically improving existing infrastructure, particularly transportation networks, and implementing modern storage facilities. By integrating sustainable practices into policy frameworks, policymakers can mitigate the environmental impact of conventional fertilizers and promote a harmonious balance between agricultural productivity and ecological well-being.