Profitability of sweet potato enterprises in Limpopo Province: A case study of Vhembe District

Abstract

This research aimed to assess the profitability of sweet potato production enterprises. The focus areas were on: determining differences in profitability of different sweet potato enterprises located in different villages; identifying factors that affect the profitability of sweet potato enterprises; determining differences in the sweet potato markets; and identifying marketing channels utilised by sweet potato enterprises. The study was carried out in 8 villages in Makhado and Thulamela local municipalities of the Vhembe district of Limpopo province. There were 78 sweet potato farmers identified and interviewed as respondents in the study. A gross margin analysis model was used to calculate the profitability of sweet potato enterprises, while a multiple regression model was adopted to analyse factors that affect profitability of sweet potato enterprises. The study revealed the domination of females in sweet potato production, wherein 69.2% of the respondents were females. Furthermore, the study revealed that 16.7% of the respondents were illiterate, 24% of the respondents had never received any form of agricultural training. The findings of the study revealed that sweet potato production is a viable and profitable enterprise in the study area. Farmers recorded an average gross margin of R11 329.94 per ha. Furthermore, labour cost and fertilizer cost accounted for the highest costs incurred in production contributing 45% and 32% respectively to total costs. The results of the study further revealed that six variables were statistically significant to profitability. Occupation status, farming experience, unpaid family members, and labour cost were statistically significant to profitability at the 1% level of significance; whereas tractor hire cost and chemical cost were statistically significant to profitability at the 5% level of significance. The study recommends that stakeholders involved in agriculture and community development should attend to issues such agro-processing trainings and extension services offered to the farmers in the Vhembe district.