Investigation of Technical and Operational Determinants of Sustainability of Agricultural Cooperatives in the Vhembe District, South Africa

Abstract

Many residents of the Vhembe District Municipality are primarily affected by food insecurity, unemployment, and poverty. As a result of these primary issues, most people turn to farming to ensure food security, alleviate poverty, and generate jobs in their rural communities. Farmers often join forces by forming cooperatives, which allow them to share resources, support one another, and strengthen their business under improved conditions. These cooperatives not only enhance agricultural productivity but also foster resilience and solidarity within rural communities. The study investigated the technical and operational determinants of the sustainability of agricultural cooperatives. The research used a quantitative method. The study was conducted in Vhembe District Municipality. A purposive sampling method was used to sample the four local municipalities within the Vhembe District Municipality. A sample size of 123 agricultural cooperatives was used for analysis. Data were collected using a questionnaire administered during face-to-face interviews. Three methods of data analysis were used in the study: descriptive statistics, discriminant analysis, and a binary logistic regression model. The study revealed the socio-economic characteristics of respondents, with most respondents being between 45 and 59 years old and having more than 10 years of farming experience. The study also found that most agricultural cooperatives were not sustainable (56.9%), while those that were sustainable accounted for 43.1%. The results indicated that agricultural cooperative members could not operate their cooperatives continuously for an extended period of time. The study found that governance largely differed based on decision-making processes, stakeholder involvement, and leadership composition within the agricultural cooperatives. The study concluded that some technical and operational factors contribute to the sustainability of agricultural cooperatives, but most were found to be unsustainable. These are some of the challenges that agricultural cooperatives face: monitoring and evaluation, leadership issues, conflicts among members, member dishonesty, and member attrition. The study concludes by recommending regular monitoring and evaluation of operational and technical aspects to enhance the sustainability of agricultural cooperatives.