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05 June 2023 | Story Leonie Bolleurs | Photo Supplied
Prof Bahta
For the past three years, Prof Yonas Bahta has studied the resilience of smallholder livestock farmers in agricultural drought, and the competitiveness of agri-food commodities.

The agricultural sector is marked by farmers’ daily struggles, including price hikes, climate change effects, and pest and disease outbreaks.

Prof Yonas T Bahta, Associate Professor and astute National Research Foundation (NRF) C2-rated researcher in the Department of Agricultural Economics at the University of the Free State (UFS), found that smallholder farmers who received drought relief support saw an improvement in their welfare. The study also found that economic capital, social capital, human capital, and natural capital substantially affected the welfare of smallholder farmers.

Agricultural drought

These findings came from the study, titled: The resilience of households to agricultural drought in the Northern Cape province of South Africa. Prof Bahta’s aim with this study was threefold – to assess household resilience to agricultural drought among smallholder livestock farmers, to evaluate the welfare of smallholder farming households affected by agricultural drought, and to identify factors influencing agricultural drought resilience and food insecurity among smallholder livestock farmers.

During his investigation, he found that only 9% of the smallholder livestock farmers were resilient to agricultural drought. According to him, farming households with access to credit, farmers who received assistance from the government (such as training and feed) during drought, and farmers who are part of a cooperative proved to be more resilient to agricultural drought.

When it comes to food security, he discovered that assets, social safety nets, and indicators of adaptive capacity had a positive influence on households' ability to withstand food insecurity. Alternatively, climate change indicators negatively impacted households’ resilience to food insecurity.

For the past three years, he has studied the resilience of smallholder livestock farmers in agricultural drought. He believes that resilience – the ability to bounce back from adversities – is crucial.

According to him, both the smallholder livestock sector (farmers) and the agrifood industry need to develop resilience to effectively cope with and recover from agricultural drought, macroeconomic stability (inflation), competitiveness, productivity, and other related factors.

Competitiveness of agri-food commodities

Prof Bahta also launched investigations into the competitiveness of agri-food commodities in South Africa as well as Namibia.

The studies were titled: Competitiveness of Namibia’s Agrifood Commodities: Implications for Food Security and Competitiveness of South Africa’s Agrifood Commodities.

In these studies, he respectively looked at the competitiveness of South Africa’s and Namibia’s agrifood products, the factors that influence it, and its implication for food security.

In both countries, he discovered a combination of comparative advantage and disadvantage.

“South Africa and Namibia exhibited a trade structure that was less concentrated and not dependant on international trade in the agri-food industry, having minimal impact on Namibia's food security. The productivity of agriculture and GDP per capita positively influenced the comparative advantage of South Africa, whereas land productivity and GDP per capita influenced the degree of food insecurity in Namibia,” explains Prof Bahta the main research findings.

Research outputs

The study on the resilience of smallholder livestock farmers was supported by funding from the National Research Foundation. To explore the competitiveness of agri-food commodities, Prof Bahta collaborated with the Namibia University of Science and Technology (NUST), benefiting from their strong existing academic relationship. The UFS Office for International Affairs played a key role in facilitating this study, with research partnerships existing between the universities of both countries.

According to Prof Bahta, the findings of these two studies have resulted in the publication of more than 13 articles in journals ranking in the highest (Q1) and second highest categories (Q2) in the specific field. A paper will also be presented at the upcoming International Food and Agribusiness Management Association (IFAMA) international conference in New Zealand from 17 to 20 June 2023.

Furthermore, five popular articles on the main findings of the studies (written in non-technical language) were also published on these topics, focusing on the farmers and policy makers (as a policy brief and popular) as the target audience. These articles looked at, among others, the impact of policy intervention on food insecurity in times of shock; coping strategies of smallholder livestock farmers during food insecurity shocks; measuring the resilience of female smallholders in South Africa; and farming for success.

This study also resulted in the graduation of three master's students (two with distinction) and three honours students.

Looking ahead, Prof Bahta emphasises the necessity for conducting similar studies targeting both commercial and smallholder farmers, focusing on crops and livestock in various provinces across South Africa. He also feels that connections need to be established with universities besides NUST.

News Archive

The failure of the law
2004-06-04

 

Written by Lacea Loader

- Call for the protection of consumers’ and tax payers rights against corporate companies

An expert in commercial law has called for reforms to the Companies Act to protect the rights of consumers and investors.

“Consumers and tax payers are lulled into thinking the law protects them when it definitely does not,” said Prof Dines Gihwala this week during his inaugural lecture at the University of the Free State’s (UFS).

Prof Gihwala, vice-chairperson of the UFS Council, was inaugurated as extraordinary professor in commercial law at the UFS’s Faculty of Law.

He said that consumers, tax payers and shareholders think they can look to the law for an effective curb on the enormous power for ill that big business wields.

“Once the public is involved, the activities of big business must be controlled and regulated. It is the responsibility of the law to oversee and supervise such control and regulation,” said Prof Gihwala.

He said that, when undesirable consequences occur despite laws enacted specifically to prevent such results, it must be fair to suggest that the law has failed.

“The actual perpetrators of the undesirable behaviour seldom pay for it in any sense, not even when criminal conduct is involved. If directors of companies are criminally charged and convicted, the penalty is invariably a fine imposed on the company. So, ironically, it is the money of tax payers that is spent on investigating criminal conduct, formulating charges and ultimately prosecuting the culprits involved in corporate malpractice,” said Prof Gihwala.

According to Prof Gihwala the law continuously fails to hold companies meaningfully accountable to good and honest business values.

“Insider trading is a crime and, although legislation was introduced in 1998 to curb it, not a single successful criminal prosecution has taken place. While the law appears to be offering the public protection against unacceptable business behaviour, it does no such thing – the law cannot act as a deterrent if it is inadequate or not being enforced,” he said.

The government believed it was important to facilitate access to the country’s economic resources by those who had been denied it in the past. The Broad Based Economic Empowerment Act of 2003 (BBEE), is legislation to do just that. “We should be asking ourselves whether it is really possible for an individual, handicapped by the inequities of the past, to compete in the real business world even though the BBEE Act is now part of the law?,” said Prof Gihwala.

Prof Gihwala said that judges prefer to follow precedent instead of taking bold initiative. “Following precedent is safe at a personal level. To do so will elicit no outcry of disapproval and one’s professional reputation is protected. The law needs to evolve and it is the responsibility of the judiciary to see that it happens in an orderly fashion. Courts often take the easy way out, and when the opportunity to be bold and creative presents itself, it is ignored,” he said.

“Perhaps we are expecting too much from the courts. If changes are to be made to the level of protection to the investing public by the law, Parliament must play its proper role. It is desirable for Parliament to be proactive. Those tasked with the responsibility of rewriting our Companies Act should be bold and imaginative. They should remove once and for all those parts of our common law which frustrate the ideals of our Constitution, and in particular those which conflict with the principles of the BBEE Act,” said Prof Gihwala.

According to Prof Gihwala, the following reforms are necessary:

• establishing a unit that is part of the office of the Registrar of Companies to bolster a whole inspectorate in regard to companies’ affairs;
• companies who are liable to pay a fine or fines, should have the right to take action to recover that fine from those responsible for the conduct;
• and serious transgression of the law should allow for imprisonment only – there should be no room for the payment of fines.
 

Prof Gihwala ended the lecture by saying: “If the opportunity to re-work the Companies Act is not grabbed with both hands, we will witness yet another failure in the law. Even more people will come to believe that the law is stupid and that it has made fools of them. And that would be the worst possible news in our developing democracy, where we are struggling to ensure that the Rule of Law prevails and that every one of us has respect for the law”.

 

 

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