Keywords

8.1 Introduction and Chapter Overview

South Africa has a long and multi-faceted history that shaped the evolution of cooperatives from the racially determined Apartheid cooperatives to the post-apartheid black economic empowerment approach to cooperatives (Satgar and Williams 2011: 202). This protracted history of co-op has revolved primarily in the agricultural sector. The South African National Department of Agriculture (2000: 8) states that the cooperative movement in South Africa started in earnest in 1902, just after the end of the Anglo-Boer War. During the War, agriculture in the former Boer Republic of the Orange Free State and Transvaal came to a complete standstill (Van Niekerk 1982). In the Transvaal, the Cape Province, the Orange Free State and Natal, government-backed attempts were made to jump-start the agricultural sector through the cooperative model. However, due to the isolated position of farms, many farmers were skeptical and did not really trust the new development. For this reason, none of the cooperatives could count on the support of their members. Against this backdrop, the beginning of the cooperative movement in South Africa was slow and often fraught with challenges.

Lately, however, a decisive role has been played by cooperatives leading to the establishment of successful farming communities in South Africa. A report from the South African National Department of Agriculture (SANDA 2009) highlights that, when compared with all other means of development, cooperatives have lifted South African agriculture from subsistence farming to a flourishing commercial farming industry. However, Kanyane (2009) argues that there is a need for research into whether or not the cooperative model really offers the best socio-economic development strategy in combating the high rate of unemployment , gross poverty and growing inequality in South Africa.

It is against the above background that this chapter explores the potential role and challenges faced by the Inanda Farmer’s Association and the extent to which this Association has contributed towards the development and sustainability of community-based cooperatives at Inanda Township. Section one of the chapter briefly discusses the socio-economic situation in the area. In section two, we present background information about the formation of the Inanda Farmers’ Association (IFA). In section three, we present an overview of the research method employed in the study. Section four presents the findings and analysis. This part of the chapter highlights the importance of agriculture in dealing with food insecurity, the creation of employment opportunities and challenges facing the Association. The last section provides the concluding remarks.

8.2 Socio-Economic Situation at Inanda Township

Inanda is located on the Eastern Region of Kwa-Zulu Natal Province, South Africa. It is about 24 km from Durban. Historically, Inanda is one of the oldest areas established in the mid-1800s as a ‘reserve’ for African people. A sizable Indian population also settled in the area until it was declared a ‘released area’ for exclusive occupation by African in 1936 (Statistics South Africa 2001 in Department of Provincial and Local Government [DPLG] 2007: 8). Inanda has a population of nearly half a million residents on a 9423 ha and constitutes one of the largest low-income residential areas in South Africa (Khan 2010: 221). The area has a mixture of residential township, a large number of informal settlements and some wards falling within the traditional jurisdiction (eThekwini Report 2004). The DPLG (2007) reports that the population is mostly young with high unemployment , low levels of education, high levels of poverty and crime, inadequate criminal justice capacity, poor traffic and road safety, and land/legal complications. More than a quarter of the population in this node was found to be illiterate (29.7 %) which in turn makes it impossible to break the cycle of poverty as most citizens would struggle to gain employment without basic literate skills and abilities (Buccus 2012: 250). This gloomy situation is further exacerbated by the reality that unemployment at Inanda sits at 66.2 % with 36.4 % of households reported to have no income. In addition, Khan (2010: 221) states that the socio-demographic profile of the location suggests that the population is ravaged by HIV/AIDS pandemic, plagued by increasing rates of unemployment and subject to rapid deterioration in the physical living conditions. These factors are known to negatively impact both livelihood patterns and increasing levels of vulnerability.

Inanda consists of 15 municipal wards, with a large number of informal settlements, limited basic service infrastructure and inadequate recreational/social facilities (Bucuss 2012: 248–249). Similar to other South African townships, Inanda is socio-economically depressed with the ‘evil triplets’ of poverty , unemployment and income inequality despite national interventions such as the Integrated Sustainable Rural Development Programme (ISRDP) and the Urban Renewal Programme (URP). In their study, Everatt and Smith (2008) found that half of the households (50.5 %) lived in informal or traditional housing. Housing backlogs in Inanda are particularly severe and constitutes almost one-quarter of the backlog in eThekwini Municipality (eThekwini Report 2011). Inanda is the mirror of socio-economic predicaments faced by eThekwini municipality.

Although there has been significant progress in some areas, there is still a huge need to address challenges such as poor access to basic household and community services, high levels of poverty, crime and risk, and illiteracy, low levels of skills development, lack of adequate healthcare facilities and the unsustainability of development practices (DPLG 2007 and eThekwini Report 2011).

8.3 Background of Inanda Farmers’ Association (IFA)

The IFA is a secondary cooperative apex body that comprises of five small associations and has been in existence since 1997. The association was formed with the primary purpose of improving the functioning of agricultural cooperatives within the Inanda area in dealing with the problem of food insecurity (Ismail 2014). The Inanda Farmers’ Association is not only charged with the responsibility of promoting gardening through agricultural cooperatives , but also serve as a mouthpiece and a link between its members and relevant government departments at the eThekwini Municipal level and KwaZulu-Natal provincial level. According to eThekwini Innovations (2007: 2–3), the Association has the following objectives:

  • To increase and formulate the business base in rural and semi-rural areas, thus resulting in job retention and growth

  • To accelerate and broaden the base of agricultural skills development, which will lead to greater entrepreneurial activity

  • To provide new channels of both business-to-business and business to government linkages between age agricultural areas and business centres

  • To provide an opportunity for increased food security, at a municipal scale, but also in time at a national scale

  • To provide a platform for increased research and commercialisation of biotechnology opportunities, for example ethanol and bio-diesel

  • To create new investments in previously disadvantaged areas

  • To give a platform for synchronised co-operatives, shared resources and a common strategy across the three spheres of government, and

  • To increase the city’s economic activity within the agricultural sector

  • To commercialise community gardens, thereby increasing the disposable income of those who tend them.

These objectives can only be achieved through co-ops mobilisation and strategically repositioning themselves to sustain an association like the IFA. Interesting outcomes of the case of the Inanda area is that while the Inanda, Ntuzuma and KwaMashu (INK) Agricultural and Multipurpose Secondary Cooperatives has been in existence for some time, very little has been achieved. Hence, the unification of the five associations from the Inanda Farmers’ Association (IFA) in the eThekwini Municipality as a strategy to improve their households’ socio-economic situation (Bandyambona 2013: 7). Currently, the Association is managed by 11 board members selected from the member co-ops which has approximately 200 co-op members including both individual farmers and co-ops (Ismail 2014). Individual or primary cooperatives interested in joining the Association are required to pay R150-00 for their membership and the money is often used to keep up the daily running of the Association including transportation to attend meetings (IFA Constitution, 2). The progress and achievements of this secondary cooperative, since its inception in 1997, has been very slow. Some of the achievements include registration as a legal entity with CIPC, securing permission to utilise three vacant offices in Newtown A, and permission to operate as a flea market in the KwaMashu E section.

8.4 Methodology

Qualitative research method was employed in collecting data for this study. The triangulation of research techniques such as document analysis, individual interviews and observation were implemented. In this regard, Tsheko (2007: 6) argues that the use of multiple sources of research data such as semi-structured interviews and document analysis do not only provide an essential descriptive data, but also make it possible for the triangulation of data analysis and documenting purposes. Semi-structured interviews with individuals were conducted with key stakeholders who are board members of the Inanda farmers’ Association (IFA). Three sets of visitations were made to the board members at Inanda and interviews were conducted in their natural setting. 7 Board members including 2 cooperative members were the target sample and were selected purposively. In total, there were 9 participants in the study. Each interview took approximately 45 min. The data collected for the study were analysed thematically. Key findings are presented according to emerging themes in the following sub-sections. Direct excerpts from interviews are italicised.

8.4.1 The Importance of Agriculture for Low-Income Households

Subsistence agriculture is an important sector in reducing extreme poverty and food insecurity in low-income areas such as Inanda. The Reconstruction and development Plan (1994: 102) states that a vibrant and expanded agricultural sector is a critical component of rural development and land reform programme. Unfortunately, through the Land Act of 1913, only 7 % of the country’s land was reserved for ‘natives’ which eventually expanded to 13 % through the 1936 Native Trust (Atuahene 2014: 8). This has limited the participation of black South Africans in agricultural sector. Atuahene (2014) reports that agriculture does not only contribute 5 % of the GDP but also add over 10 % of employment. The triple challenges of poverty, unemployment and inequality made the government and other interested stakeholders prioritise food production as one of the mechanisms to deal with food insecurity. A young emerging farmer highlighted the desperate situation in which poor people found themselves without food. He went on to say that:

Food insecurity has multiple effects on the poor. Without adequate and nutritious food, the poor and destitute do not only suffer from health related diseases such malnutrition, but also lack of it weakens their immune system to an extent that they are unable to be productive.

In line with the foregoing, the chairperson of the IFA noted that agriculture plays a pivotal role more particularly in feeding people with fresh vegetables, cutting down poverty and creating job opportunities for the urban poor. Judging from the foregoing, it is not surprising that the Province of KwaZulu-Natal, through the Department of Economic Development in partnership with the Department of Agriculture, has initiated a programme called ‘One Home-One Garden’ to encourage people to plant their own food.

According to the Association’s secretary, the association specialises in crops such as potatoes, cabbages, carrots, green beans, spinach, and onions. Other Board members of the Association stressed that farming in crops is important in communities threatened by food insecurity coupled with poverty , unemployment, income inequality as well as the scourge of HIV/AIDS. One farmer asserted that:

All these problems are depressing but through self-initiated enterprises such as the cooperatives, people start to think differently and to believe in themselves. Small-scale farming does not only pave way to the eradication of poverty and unemployment, but also enable farmers and general communities to get food and some money.

8.4.2 Opportunities of Primary Co-ops Through Inanda Farmers’ Association

Since inception, the IFA has created opportunities which, when exploited, could make cooperatives strong, effective, efficient and proactive movement capable of providing most needed goods and services. The availability of land at Inanda is the primary resource and without it, it will be impossible for people to pursue agricultural activities. Government (the Department of Agriculture in particular) has been helpful in the provision of agriculture-related facilities such as tractors, seeds, and technical support to various cooperatives in the area. In addition, the Department offers grants to both individual and registered co-operatives.

At Inanda, job opportunities are very scarce and local communities are pushed to organise themselves into small income generating projects as part of their livelihood strategies. As alluded by the chairperson of IFA, agriculture is one of the sectors which has the potential of creating jobs for local people. It could also render needed goods and services to respective communities. The members of the Association were appreciative of the formation of agricultural cooperatives as reflected in the interview excerpts below:

Although other people in the community consider small-scale farming as a lower-class occupation, tilling the land reconnect us to earth and help us to earn a living thereby creating employment opportunities.

Working the land does not only teach skills on how to deal with soil and the environment and other agricultural related facilities and equipment, but also restore our human dignity and a sense of active citizenship.

During the interview, the Treasurer of the Association revealed that 124 people are employed in the 17 gardens supported by IFA. He also reported that they used approximately 15–20 ha of land. Importantly, co-ops do not only play a unifying role of different ethnic groups in their localities (Fairbairn 2004: 29), they also provide employment opportunities thus ensuring that agriculture has widespread and powerful social and economic effects on people’s lives. One of the co-op members highlighted the prevalent socio-economic challenges motivated the Association to promote self-help and improvement of farmers who in turn would provide agricultural goods and services. Members of the Inanda Farmer Association, each owns a piece of land where s/he grows different crops according to the market demand.

Improvement of the household socio-economic situation was another opportunity provided to members of the IFA. Most of the interviewees noted that the crops they produce as co-ops help them to improve their socio-economic status. Money generated from the sale of produce is used to purchase household goods. It was also noticed that children of most members of the cooperatives were attending school. This was a good sign for the future of the households.

Linking other co-ops around Inanda to agriculture market was also identified as an opportunity provided to primary co-ops by the IFA. Since the Inanda Farmers’ Association is a formal organisation, it links with other organisations/associations both within and outside Inanda to exchange and share ideas. The chairperson of the association reported that there is high demands for co-ops to produce and it became clear that co-ops needed to organise in order to meet the demands. Apart from selling their produce within their respective communities, the Association has managed to secure orders from retail shops such as Spar, Shoprite and Pick’n Pay.Footnote 1

8.4.3 Challenges Facing District Farmer Association

Analysis of field interviews identified a number of challenges facing the IFA. These challenges are presented below.

8.4.3.1 Shortage and Limited Optimal Use of Land

Land is a big issue at Inanda as the government does not own much of land, individuals have small portions of land which they use for various purposes such as the construction of houses and businesses or small agricultural farming. Previously, these small farmers operated as associations but without noticeable impact especially on embarking on effective and efficient subsistence farming. During the interview, the chairperson of the association noted that:

The shortage of land for members of the Association and INK community, in general, should be measured on how effective and efficient individual farmers and cooperatives are making use of the available land at their disposal. The size of land owned for agricultural use varies; some individuals have between 1, 2 and 5 half hectors while co-ops own between 2, 3 to 5 hectors of land.

Most of the cooperators interviewed highlighted that only a few farmers were in dire need of extra land, the rest of cooperators reported that the challenge rest on the optimal utilisation of the available land. Little has been done by the local government to support these associations to maximise land use. Given its status as one of five area based management areas in the city, Inanda is part of Inanda, Ntuzuma and KwaMashu (INK) and its proximity to uMhlanga and the northern development corridor made it to become more integrated into greater Durban and its metros in the northern spatial plan. The demand for land in this area, especially for business purposes, makes it very difficult for people to venture into expanded agricultural activities. Against this backdrop, maximizing the productive of land holding if critical to the success of small-scale farming.

8.4.3.2 Financial Support and Abuse of Government Grant

Economic activity that would allow for large-scale employment generation is non-existent at Inanda, while the majority of consumer spending leaks out of the Inanda area. For individual farmers, limitation to finance resources poses a huge challenge hence the majority of the households are not formally employed and depend on government grants. For most of the poor and unemployed , the formation of agricultural co-ops was a relief but lack of proper planning, as well as generic start-up financial support, resulted in poorly managed cooperatives with little financial outcome for members. One member of the Association revealed that government assisted them with financial support in the form of grants. Unfortunately, such assistance is being abused by cooperators who spend the money without saving or investing for future use. It has been reported that some members desert farming and seek employment elsewhere once the grant is exhausted. Such members eventually come back when there is the promise of a further grant from the government. Satgar and Williams (2011: 207) applaud the assistance of a grant or loan-based financing model, but also warned that it may entrench dependency on the state. It is also important to highlight that due to the lack of proper organisational system and good planning; it is difficult for the Inanda community to access finance as finance institutions require formal organisation structures.

8.4.3.3 Lack of Market and Networking Skills

Since cooperatives are based within their communities, local people and communities provide co-ops the primary market. In the past, the Association managed to secure formal market which entailed supplying retail outlets such as Pick’n Pay, Checkers, Spar, and Woolworth. The main challenges in the agricultural sector is to compete with bigger businesses with more expertise, capital, and means of mass production. The following comments shed light on the imperative for creativity, innovation and strategic repositioning of co-ops to sustain their entities as part of their competitive advantage.

This sector does not entertain people who are lazy hence most of co-op members sit and expect good harvest without sweating for it.

Farming demands hard labours and people who are willing to go an extra mile. This includes ploughing on time; ensure plants are taken care of in order to guarantee good harvest.

Instead of waiting for an order, farmers have to take into themselves to use informal marketing strategies such as going house to house selling, sell to hawkers and in the local taxi ranks, etc.

The reality is that there is demand and co-ops are failing to meet these demands. From the interviews, it emerged that in cases where co-ops have secured a market, their produce is not usually supplied on time and the quality of produce is often considered sub-standard. One of the members stated that in order to deal with marketing the co-ops’ produce, it is imperative for the Association to create a market around the area for the local community to be able to support the project in buying the produce. One of the executive members of the Association states that:

The Association is faced with multiple challenges. Central to these of the challenges is the failure by the Association to secure sustainable markets to sell the produce. As an Association, we do not have marketing skills, attractive packaging of produce and the failure to master technology such as computers and the internet which contribute towards undermining our capacity to market our produce.

Due to the high level of unemployment in the Inanda area , the crime rate is high. The level of security is very poor and produce ready for harvest is often stolen. Agricultural equipment such as machinery, and seedlings and manure need 24 h security. This adds additional operating costs to the activities of the cooperatives.

8.4.3.4 Transportation of Products to the Market

Transport of the farmers’ produce is another challenge. Considering that most of the crops are perishable, there is a need to transport them to the market timeously. Good roads are needed to aspire and attract both locals and bigger supermarkets to visit the farmers and support the cooperatives. For the survival of the Association and its individual member cooperatives, road infrastructure is an imperative while the availability of transport is paramount for moving produce to the market. The following excerpt captures a member’s view on challenges associated with transport:

We find it very difficult to transport our product because we do not have transport. At times, we hire other people’s cars who in most cases charge us exorbitant fares because they know that we do not have any other alternative. Without our own transport, we are often

To address the challenge of transport, it was noted that some members have improvised by taking their produce to the taxi rank and local schools in order to sell. Considering that most of the member cooperatives produce perishable goods such as cabbages, potatoes, carrots, spinach and tomatoes, inability to timeously move these to the market would result in significant loss for the farmers.

8.4.3.5 Lack of Understanding of Co-op Values and Principles

One of the challenges facing members of the association is limited understanding of the principles of a cooperative and how co-ops differ from other enterprises. However, it was noted that there were ongoing attempts to bridge this knowledge gap as members undertake training to improve their knowledge.

8.4.4 Farming Equipment and Tractors

For the Association to execute its work effectively, they need equipment and ploughing tools such as tractors, seeds, irrigation facilities, etc. During the interview, it was revealed that the eThekwini Municipality tried to help the Association with farming equipment such as tractors but due to the high demand of the materials, cooperators were made to wait for longer periods in order to be assisted. One of the cooperators highlighted his frustration in the following excerpt:

Despite that we are able to access the municipality owned tractors, the challenge is that more often the tractors is not released in time for the farmers to take advantage of such resource.

In response to this dire situation, the members were compelled to go out and rent tractors which affected their profit margins. This is expressed in the excerpt below:

In most cases municipality would release the tractor for two days while the farmers need the tractors for a week. This situation then pushes us to hire outside tractors for them to do the work.

Considering that farming is seasonal, the Association’s failure to plough on time has serious implications for productivity. Produce such as potatoes, onions, cabbages, carrots are seasonal and demand a tight programme pertaining to preparation for planting, weeding and harvesting.

8.4.5 Quality Seeds and Ploughing Methods

The eThekwini Municipality, in collaboration with the provincial Department of Agriculture, ensures that people and organisations in the farming sector are taught effective ploughing method and necessary facilities are provided for quality produce. Unfortunately, the farmers highlighted that they were currently using traditional farming methods including the irrigation system which enables them to meet the demands from customers. Some interviewees wanted more support from either the government or donors especially financial support to purchase seedlings. They reported that they were unable to keep seeds from the current harvest as leftover seeds were not good for replanting hence they needed money to buy more for the next season. One of the solutions suggested by the Vice-Chairperson of the Association to this problem was for the Association to start keeping their own seeds and learn to preserve seeds with assistance from the Department of Agriculture.

8.5 Discussion of Research Findings

Despite the developmental interventions such as the Urban Renewal Programme Area-based Management programme, Inanda is still categorised as one of the most deprived and low-income areas in South Africa in terms of basic services and food insecurity (DPLG 2007). Inanda is plagued by multiple challenges hence growing food could be instrumental in mitigating malnutrition and hunger, supplement the diet and provide employment for the locals. Cooperatives that produce a variety of alternative and locally desired items could be a useful tool and agents of change in their efforts to enhance rural communities and their economic well-being (Wilkinson 1991; Luloff and Bridger 2003). Most of the cooperators agreed that cultivating the land at this scale gives them economic power as they could sell cultivated produce for household and public consumption. They added that vegetables could be used to sustain their livelihoods and contribute towards reducing hunger in the area. In this case, well organised, financial sustaining and properly managed cooperatives could be a force where employment opportunities are created; reliable income generated and increased trade. Further, cooperatives serve to strengthen community support functions.

Despite the real and potential benefits of the IFA, it is constrained by a number of challenges. In the case of the Inanda Farmers’ Association (IFA), the shortage of financial resources coupled with the lack of land, farm input, and access to market, transport and knowledge on cooperatives have made it difficult for the Association to function. These challenges are further aggravated by the dominant spirit of individualism as opposed to cooperation and self-help within the Inanda area. Division and conflict of ownership were dominant among the members. This has made it difficult for board members to work cooperatively with members as recommended by Ginder and Deiter (1989: 318).

KwaZulu-Natal has the highest number of cooperatives but the majority of them collapse without yielding fruits. Lack of bottom-up cooperative development centred on member education has resulted in dismal outcomes evidenced in 88 % failure rate (Satgar and Williams 2011: 205). Some of the reasons attributed to the failure of co-ops were that people were lured into forming co-ops because the KZN province promises financial support (Satgar and Williams 2011). They further noted that

Instant registration of co-operatives without proper planning, generic start-up financing and supply-side attempts at co-operative education have not led to genuine co-operative consciousness and understanding. Instead, co-operatives have been treated as just another business form and understood in quantitative terms as part of out-based management within the state bureaucracy (Satgar and Williams 2011: 205).

The problem of financial incentive as a barrier to the success of cooperatives was noted in interviews conducted with members of the IFA. Members cited instances where some individuals join cooperatives only when the government has provided grants to cooperatives.

Added to the foregoing is limited understanding of cooperatives and how they function. At the movement, cooperatives rely largely on the government for training on the principles, values, and governance of cooperatives. Such an approach furthers the dependence of cooperatives on the government for their survival. For that reason, the apex body like the IFA needs to take a proactive step towards member education. Such self-reliance should also extend to other areas of the operations of cooperatives. For instance, as much as the Association accepts the help from the Department of Agriculture, it is imperative for this apex body to organise itself so that it could be self-reliant in small items such as seeds. For the co-ops to compete and sustain their enterprises, it is imperative that the Association organise a series of workshops where farmers could be taught innovative methods of farming including the use of chemicals and pesticides.

8.6 Concluding Remarks

This chapter focused on the roles of Inanda Farmers’ Association in developing and sustaining the cooperative sector. The findings show that agricultural cooperatives at Inanda have the potential to impact positively on the socio-economic status of rural people and other low-income areas as long as cooperative values and principles are respected by all cooperators. Cooperatives at Inanda contribute, to a limited extent, towards job creation, income generation as well as better living conditions of Inanda community. The findings of this chapter demonstrated that for cooperatives in Inanda to be sustainable, cooperatives themselves, including their apex body such as Inanda Farmers’ Association, should take the primary responsibility for the cooperative. Government and its Cooperative Unit should assume the secondary role especially in consolidating cooperative policy and educating cooperatives on the essence of the cooperative model in reducing poverty and job creation.

The professional monitoring of agricultural activities within the Association is imperative. At Inanda, monitoring and evaluation of produce is unfortunately poor and weak. For the Association to be sustainable, professional services regarding monitoring and supervision could be instrumental in maintaining quality and meeting market demands. Although the Department of Agriculture provides technical support to individual co-ops, such support should allow space for the Association to organise itself in order to avoid dependency. Thus, support by government should either be in the form of facilities, grants or training and education programmes and should not undermine co-op principles of autonomy and independence and economic control including values such as self-help and solidarity.

The chapter found that cooperatives at Inanda are confronted by a number of challenges including financial and infrastructural deficiencies which undermine their ability to contribute to poverty reduction and employment creation. Challenges such as shortage of land, financial constraints, coupled with poor understanding of what and how cooperatives function, as well as their values and principles, are the stumbling blocks undermining the potential of IFA in growing a vibrant and capable cooperative movement. In order for the cooperatives at Inanda to reach their objectives of poverty alleviation and job creation, there is a need for targeted intervention such as the creation of viable markets. eThekwini municipality could recommit itself to consolidating its preferential tendering system whereby cooperative enterprises could be prioritised. In return, this commitment could be instrumental in providing employment and create sustainable incomes through the consistent production of goods and services.