Abstract
South African emerging milk producers are facing a continuous challenge of hindered growth and not being able to break into the formal market to become profitable. The majority of emerging milk producers are struggling to sustain their farming enterprises despite the existence of government farmer-support programmes. This study was undertaken in the context of a shrinking dairy industry in Gauteng and the absence of emerging milk producers in the formal market as well as the disparities between Gauteng emerging milk producers and smallholder milk producers in other countries.
The study investigated the challenges facing emerging milk producers in Gauteng and recommends a strategic operational model that can be adopted to ensure their viability, competitiveness and sustainability.
The study adopted mixed research methods which consisted of questionnaires, semi-structured interviews and site observations. Ten emerging milk producers completed the questionnaires and four semi-structured interviews were conducted with farmer support institutions. The sample of emerging milk producers was selected based on the size of their farming businesses and having received government support at some point in the start-up and running of their business.
The findings of the study reveal that the emerging milk producers are unable to break into the mainstream economy due to a lack of resources. The findings show that emerging milk producers do not have an adequate number of cows for milk production, use outdated infrastructure, and lack access to funding as well as technical knowledge required for successful dairy farming.
The recommendations of study participants are that emerging milk producers need to be trained in technical aspects of milk production such as herd and fodder management. Furthermore, the study recommends a strategic operational model that entails training, streamlined government support, formation of partnerships and acquisition of key production resources.
M.Com. (Business Management)