Abstract
World agriculture, despite numerous supply and demand challenges, has to increase its production capacity significantly to satisfy the increased demand for food. In addition, the sector has a significant developmental role to play. Access to credit is, however, a key enabler in this regard. This paper reports on a country-specific study performed to promote the success of agricultural value chain financing in South Africa, with a specific focus on the financing of agricultural production. The literature review provides a global overview of agricultural production, agricultural value chain financing and the potential role of leading chain actors as connecting institutions. The empirical study provides strong evidence of significant relationships between the dependent variable of the study, namely the perceived success of agricultural value chain financing in South Africa, and the intervening and independent variables. The independent variables value chain integration, strategic partnering, risk management, supporting services, sustainable production, product range and external financing positively influence the intervening variable – value chain competitiveness. In the same manner, the intervening variable of value chain competitiveness positively influences the perceived success of agricultural value chain financing in this study.
Get full access to this article
View all access options for this article.
