Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda

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Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries Figure 4-13: Main challenges with suppliers Cost of supplies 46% None 19% Delays in receiving supplies 15% Transport issues 15% Quality of supplies 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Source: Urban-Econ Survey, 2013 Supplier delays and transport issues are also a concern for cooperatives. Small-scale cooperatives do not have the capacity to buy from large producers and as a result buy from the most easily accessible supplier nearby. A representative from the DPFO indicated that one of the biggest concerns with small farms is a lack of quality feed, which results in poor growth rates in chickens. However, only 4% of responses indicated this as a concern. This may be as a result of lack of information about quality inputs, but also indicates the prioritisation of the cost of feed above any other supplier concern. A representative from the DPFO stated that one of the constraining factors with developing farmers is a lack of quality feed which results in poor growth rates in their chickens 4.1.2.5. Support and Challenges A number of different government agencies provide support to cooperatives. Due to the source of the cooperative database (SEDA and Dti CIS sources), there is a high likelihood that the information on support organisations is not representative of cooperatives on a large scale (over 5000 poultry cooperatives were identified as active by the CIPC). However, the information around how the support has benefitted cooperatives can be taken at face value. Of the cooperatives sample surveyed, 57% had received some form of support. The figure (4-14) below illustrates the proportion of support provided by the various support agencies, with the most prevalent support in this sample coming from the National Department of Agriculture (NDA), the Dti and SEDA, closely followed by local government. Organisations included in the category of ‘other’ include private companies such as LIBSA and SAPA. 57 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s
Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries Figure 4-14: Support Provided by Various Organisations 10% 15% 20% 30% NDA DTI CIS SEDA Other Local government 25% Source: Urban-Econ Survey, 2013 The support indicated in the figure above can range from equipment to training to business mentorship, amongst other things. In the background section of this report (refer to Section 4.2.2.1), the support provided is specifically around business preparation documentation. The support in the above figure (Figure 4-14) indicates a far broader range of support and represents the relevance of support as seen by cooperatives. For example, although many agencies may have provided assistance, cooperatives generally provided the names of the first ones that came to mind. In order for a government agency to provide assistance to a cooperative, a member(s) will have to approach the agency and request assistance. Information dissemination for government support structures is vital in order to ensure this connection happens. Cooperatives who had received assistance were asked how they came to know about the support programmes they benefitted from. The figure below illustrates which means of communication cooperative members used to obtain information about support. The majority (71%) of cooperatives said that information was obtained through word of mouth. This is a very diverse category, however, and may include any number of original sources of information within the community. The fact that many cooperatives view this, in a way, as general knowledge, indicates that support organisations have very successfully informed communities of their services. 58 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s
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