Food Crops or Cash Crops in the Northern Communal Areas of Namibia: Setting a Framework for a Research Agenda Hopolang Phororo October 2001 NEPRU WORKING PAPER NO. 80 N EPRU THE NAMIBIAN ECONOMIC POLICY RESEARCH UNIT Postal: P. O. Box 40710, Ausspannplatz, Windhoek, Namibia Street: 59 Bahnhof, Windhoek, Namibia Tel.: +264 - 61 - 228284 Fax: +264 - 61 - 231496 Email: [email protected] Web site: www.nepru.org.na NEPRU produces: • Books • Research Reports • Working Papers • Briefing Papers • Travel and Meeting Reports • Occasional Papers Please turn to the back pages for a list of publications. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying, recording and storage in a retrieval system, without the written permission of the copyright holder except in accordance with the copyright legislation in force in the Republic of Namibia. Copyright 2001 by the Namibian Economic Policy Research Unit. NEPRU Research Report ISSN 1026-9231 First published in 2001 by the Namibian Economic Policy Research Unit, P.O. Box 40710, Ausspannplatz, Windhoek, Namibia Acknowledgements The author would like to acknowledge the generous financial support of the Norwegian Agency for Development Cooperation (NORAD) for making this paper a reality. Thanks go to the Christian Michelsen Institute in Bergen for facilitating and hosting the stay of the author during May, 2001 while she was undertaking the research for this paper. The author of this paper would also like to thank all those who contributed their comments for this paper. Disclaimer The opinions presented are those of the author. i Table of contents Acknowledgements ..................................................................................................... i Disclaimer ................................................................................................................... i Table of contents........................................................................................................iii List of tables ...............................................................................................................iv List of abbreviations ................................................................................................... v List of abbreviations ................................................................................................... v 1. Introduction.......................................................................................................... 1 2. Historical Background on Namibia’s Agriculture Sector ...................................... 2 3. Agriculture in Namibia ......................................................................................... 3 3.1. Definition of Communal Farmers................................................................. 4 4. The Advantages and Disadvantages of Farmers shifting from food crop to cash crop production ........................................................................................... 5 5. Constraints faced by small Farmers in Making a Transition from Food Crops Production to Cash Crops Production....................................................... 8 5.1. Increasing Burden placed upon women ...................................................... 8 5.2. Competition for labour ................................................................................. 8 5.3. Access to Resources................................................................................... 9 6. Impact of HIV/AIDS ........................................................................................... 11 7. Conclusions ....................................................................................................... 13 8. Drawing up a Research Agenda........................................................................ 14 8.1. Labour Issues............................................................................................ 14 8.2. Negative Impacts from Cash Crop production .......................................... 15 8.3. Millet production ........................................................................................ 15 8.4. Impact of HIV/AIDS on the Communal Farmers ....................................... 15 8.5. Role of the Private Sector ......................................................................... 15 8.6. Incomes in the Communal Areas .............................................................. 16 8.7. Spill-over effects as a result of Cash Crop Production.............................. 16 9. References ........................................................................................................ 17 iii List of tables Table 1: Millet Production (000 tonnes) for 1990/91 – 1999/2000 ...........................4 Table 2: Gross margins for annual cotton and millet ...............................................6 iv List of abbreviations ABC Agro-Business and Consultants CRIAA SA-DC Centre for Research-Information-Action in Africa, Southern Africa-Development and Consulting FAO Food and Agriculture Organisation GDP Gross Domestic Product HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome ILO International Labour Organisation MAWRD Ministry of Agriculture, Water and Rural Development NCA North Central Areas NPC National Planning Commission UNAIDS United Nations Programme on HIV/AIDS UNDP United Nations Development Programme UNFPA United Nations Population Fund v 1. Introduction In order to improve rural incomes in Africa, the semi-subsistence, low input and low productivity farming systems need to be transformed. The emphasis in many Southern African countries has been to promote food production by intensifying the supply of inputs, such as subsidized credit and input delivery systems through state institutions. However, these approaches have failed with many of these state institutions becoming financially unsustainable. Other strategies have been adopted and that has been to intensify crop production by promoting high value cash crop production. Economists have extensively debated the issue of whether small farmers should produce food crops or cash crops (von Braun and Kennedy, 1994; Govereh and Jayne, 1999). The premise has been that where cash crops are produced they can be marketed, hence enabling households to increase their rural incomes. This income can then be used to purchase household consumption goods rather than the household be constrained to produce all the various goods that are needed (Timmer, 1997, Govereh and Jayne, 1999). Other economists have argued that more food crops rather than cash crops should be produced because this can contribute to the achievement of national self-sufficiency. Others have indicated that it does not make a difference whether food or cash crops are produced because what matters most for improved household food security is income growth. This paper does not attempt to answer the question of whether farmers in the Northern Communal Areas1 in Namibia should make the transition from food crops to cash crop production. The paper examines issues, which might be important for farmers to make the transition to cash crop production and proposes a research framework under which this question can be answered. Food crops include the cereal grains and the focus is mainly on millet whereas cash crops comprise cotton, oriental tobacco and groundnuts. The emphasis is on cotton. The historical background on Namibia’s agriculture sector will be presented to better understand the dualistic nature of the sector, which is made up of two categories of farmers, subsistence farmers and commercial farmers. Furthermore, a distinction will be made between subsistence farmers, those who have holdings that are less than 1 hectares, those who have holdings of 1 to 4 hectares and those who have 5 to 20 hectares, who for purposes of this paper will be defined as small, medium and large subsistence farmers respectively. In the paper, it is suggested that a transition from food crop production towards cash crop production will be difficult in the case of the small farmers, who produce for subsistence, given the constraints that they face. The situation for the larger communal farmers is more favourable and they are in a better position to make the switch to cash crop production. HIV/AIDS will pose to be a major challenge facing the farming communities, particularly as it affects the most productive members of society. The potential for increased crop production might 1 Includes the North Central Regions (Ohangwena, Omusati, Oshana, Oshikoto), Kavango and Caprivi be limited given that it is labour intensive therefore other non-farming alternatives will have to be examined to raise rural incomes. 2. Historical Background on Namibia’s Agriculture Sector Namibia, like South Africa and Zimbabwe is characterised by a dualistic agricultural sector, where a strong commercial sector exists alongside a sector comprised of households in freehold or non-freehold areas. This dualistic agriculture sector was an inheritance of the past, where white settlers gained mostly marginal land (unproductive) for grazing and were assisted by the state to become commercially viable (Moorsom, 1985; Elkan et al, 1992; Kirsten and Van Zyl, 1998). The white settlers received subsidies for settlement, wells, dams, and breeding stock and cash loans. In the south, karakul sheep farming was the main activity and in the north, beef cattle were reared. State support remained an important component of the farming system, particularly during times of drought, which ensured that farmers survived. For the marketing and promotion of karakul sheep and cattle, state monopoly boards were established and played an important role (Moorsom, 1985). Karakul pelts were marketed in industrialised countries and beef was sold in the South African markets. During the apartheid era, the communal areas were sealed off from the commercial economy and the only way of earning a cash income was through labour migration. According to Moorsom, 1985, the state went to great lengths to isolate northern agriculture by banning the southward movement of cattle, sales of produce outside the communal areas were prevented and only three stores were licensed in the north. It is not surprising that production has remained at a subsistence level and that farming remains mainly under the domination of women. The need for a cash income, which subsistence agriculture could not provide forced an increasing number of men to join the migrant labour system and by 1970, 45% of the Ovambo men had left the communal areas (Moorsom, 1985). Nevertheless, both stock farming comprising cattle, goats and poultry and arable farming, which included mainly millet, which is well adapted to dry conditions still played an important role. Some sorghum and to a lesser extent, beans, nuts and vegetables were cultivated in the northern communal areas whereas maize was cultivated in the eastern regions of Namibia (Moorsom, 1985; Food Studies Group, 1990). Production was mainly for home consumption. Black stock-farmers were assigned to inferior farming land and encountered serious environmental constraints. The lack of reliable water supplies and severe overcrowding did not make stock farming a viable option. Although there were some farmers with large herds of stock, the colonial system did not permit them to become ranchers and to purchase farms away from the communal areas. 3. Agriculture in Namibia Agriculture’s share to GDP at current prices declined from 5.3% in 2000 from 7.6% in 1994 and this was partly due to the impact of the drought and/or the better performance of other sectors, such as fishing and mining. The commercial sector’s contribution to agriculture declined from 4.9% in 1994 to 2.5% in 2000 whereas the communal sector’s contribution remained constant from 2.7% in 1994 to 2.8% in 2000 (National Planning Commission, 2001). The poor performance of the commercial sector was due to rising interest rates (Werner, 2001). Livestock rearing, rather than arable crop production is more suitable for Namibia’s climate therefore the commercial livestock sub-sector dominates agricultural output. In recent years, the contribution of the commercial crop sub-sector has increased as a result of grape production in the south (MAWRD, 1999). However, despite this declining share of agriculture, 49% of the country’s labour continues to be employed in the agriculture sector and about 70% of the population is partly dependent on it for their livelihoods. The agriculture sector will continue to play an important role in the Namibian economy as a main source of livelihood and employment (Ministry of Labour, 1998; MAWRD, 1999). Currently, commercial agriculture is practised on farms, ranging from an average size of 7500ha in the south to 4500ha in the north and central areas of Namibia (MAWRD, 1999). Maize, wheat and cotton are grown in central and northern Namibia, namely the ‘maize triangle’, comprising three areas of Tsumeb, Otavi and Grootfontein. Cattle rearing remains an important activity in the north. In the south, commercial farmers have recently diversified into irrigated grapes and dates mainly for export markets. The livestock sector comprises mainly sheep rearing and ostrich breeding is becoming increasingly important. In the Northern Communal Areas, most of the cereal crop is rain fed millet and sorghum and to a lesser extent maize. Production is predominantly for household consumption and when surpluses are produced, the traditional practice is to store grain on-farm as insurance against the failure of the next rainy season or is sold in village markets to meet an urgent need for cash and is exchange with other goods. Millet and sorghum represent 30% of the national cereal food utilisation and even then, is far from meeting the national cereal consumption requirements of the country (CRIAA SA-DC, 2001 (b); Keyler, 1996). Some horticulture crops, such as beans, pumpkins, melons, gourds, cowpeas, bambaranuts, groundnuts, and spinach are also grown (Schade et al., 2000). At least 50 percent of the population resides in the north and the majority of the population comprises subsistence farmers. Farming plays an important role for their livelihoods in that production is mainly for home consumption and in some cases, the surplus sold is the sole source of income. For other farming households, other sources of income such as wages, remittances and pensions supplement the incomes earned from farming (NPC, 1999; Ministry of Labour, 1998). As early as 1990, very little or none of the cash income from migrants remittances was being invested back into crop agriculture in terms of purchasing new equipment or inputs (Food Studies Group, 1990). Communal farmers produce the bulk of the millet and sorghum. Out of the 1700 tons of millet and sorghum produced by commercial farmers in the 1998/99 season, 200 tons represented millet and out of the 2400 tons of millet and sorghum produced by commercial farmers in the 1999/2000 season, only 100 tons represented millet in the 1999/2000 season (see Table 1). Formal marketing channels for millet and sorghum were virtually nonexistent prior to Namibia’s independence but with the establishment of the MMIU efforts are being made to provide information to millers to facilitate marketing. Millet is now being processed so that it can become competitive with maize and wheat products in the urban centres. Namib Mills, the largest industrial processor of maize and wheat in Namibia has started buying millet and in the 2000 marketing season purchased over 800 tons in the Northern Communal Areas for their new dry-processed millet meal (CRIAA SA-DC, 2001 (a)). Millet production has fluctuated according to the weather conditions from 17200 tons in 1991/92 to a high of 117000 tons in 1996/97 as noted in the Table below. In 1996/97, favourable rainfall patterns resulted in the high production of millet. Table 1: Millet Production (000 tonnes) for 1990/91 – 1999/2000 Millet and sorghum: NCR* Kavango NDC/FSP** Other farmers Caprivi Commercial areas Total 1990 /91 1991 /92 1992 /93 1993 /94 1994 /95 1995 /96 1996 /97 1997 /98 1998 /99 1999 /00 55.0 15.0 34.3 54.4 33.7 51.9 101.5 35.4 40.2 74.0 0.0 2.4 0.3 0.0 1.2 1.0 0.0 4.4 5.0 3.0 9.3 2.4 2.4 2.5 2.5 4.3 4.9 3.4 3.8 8.0 3.8 0.0 1.2 0.9 0.0 6.0 1.3 0.0 5.7 3.9 57.7 17.2 43.7 69.1 41.1 64.6 117.1 37.5 1.7 49.2 2.4 86.0 Source: Namibia Early Warning and Food Information Unit, Ministry of Agriculture, Water and Rural Development, 2000 NCR*: Northern Communal Regions NDC/FSP**: Namibian Development Corporation’s Food Support Programme 3.1. Definition of Communal Farmers For purposes of analysis, communal farmers are divided into three categories – small, medium and large. A survey (NPC, 1999) undertaken in the Northern Communal Areas, indicated that 16% of the land holdings are less than 1 hectare, 62% of the land holdings are between 1 and 4 hectares and 22% of the land holdings are 4 to 20 hectares. In terms of cultivation, the latter two groups cultivate 52% and 45% of the total area respectively while the first group cultivated 3% of the remaining land area. The average planted area is 2.85 hectares and it would be mainly millet that is cultivated2. The first group represents small farmers, the second group are medium farmers and the third group is classified as large farmers. The large farming households farm a significant portion of the total area and are regular surplus producers. These large farmers were part of the now discontinued Farmers Support Programme of the National Development Corporation, which covered other parts of Caprivi and Kavango3 (CRIAA SA-DC, 2001 (b); Vigne & Associates Consultants, 2000). All the farm holdings are very small, when compared with the areas farmed by commercial farmers, thus indicating the deliberate strategy of the colonial legacy to keep farming at a subsistence level. 4. The Advantages and Disadvantages of Farmers shifting from food crop to cash crop production Since the Northern Communal Areas are most suited to agronomy, the potential exists for greater intensification and diversification of agricultural production. One of the goals of the Government of the Republic of Namibia is to increase production, which will contribute towards the attainment of household food security and a reduction in the need for imported food. Government is also encouraging the diversification of smallholder crop-based systems to promote integrated production of legumes and other non-food cash crops (MAWRD, 1995). The non-food cash crops include cotton and oriental tobacco whereas groundnuts are a food cash crop and are being tested on some farms in the communal areas. Cotton is not a new product in Namibia and in the 1970s, some 4 to 5000 hectares were cultivated but production declined due to high transport costs, price declines and labour problems. In 1998/99, some 3670 hectares were grown of which 850 hectares were planted under irrigation at Hardap and other schemes whereas the remaining 2910 hectares was planted on dryland, mainly on commercial farms (Vigne & Associates Consultants, 2000). Introducing cash crops to communal farmers has the potential to increase food security by increasing food farming household’s productivity, raising rural incomes, generating employment and promoting economic diversification (World Bank, 1986). Cash crops can generate greater incomes than food crops, since they are grown mainly for sale and not for consumption. Vigne & Associates Consultants (2000) did a comparison of gross margins for cotton and millet in Namibia at 1999/2000 figures under low, average and high rainfall conditions and the following results were indicated: 2 The division of farmers for purposes of analysis is based on three major groups of holdings identified by the Central Bureau of Statistics, NPC in the 1998/99 Agricultural Survey. 3 The Farmers Support Programme of the Namibia Development Corporation started with five farmers in 1990/91 and grew to 136 farmers in 1996/97. The FSP concentrated on the production of millet and some cotton was produced. The FSP ended in 1997. Table 2: Gross margins for annual cotton and millet Cotton (N$ per ha) Millet (N$ per hectare) Low rainfall (<300mm) 200.9 -181.1*/-121.1** Average rainfall (300 – 450mm) 203.8 -147.5*/-27.5** High rainfall (>450mm) 206.6 -113.8*/66.2** Gross margins Source: Vigne & Associates Consultants, 2000 Figures marked with an * indicate the returns for small farmers, whereas the ** is for the large surplus producer. Table 2 indicates that the returns per hectares are much higher for cotton compared with millet, where negative returns result except for the large surplus farmer producing under conditions of high rainfall. Four variables were considered in developing the gross margins: cultivation implements, method of weeding, total rainfall and crop yields. Cultivation implements included the costs for hoeing, draught animal power, ploughing and tractor ploughing, whereas the method of weeding included the costs of weeding using a hand hoe, draught animal power cultivator, hand hoe or herbicide. Projections of crop yields were based on intermediate levels of management as defined by inputs (Vigne & Associates Consultants, 2000). A first glance at these figures would suggest that cotton is the best crop to produce but other factors such as if cotton were produced and then millet would be purchased for household consumption, it would be important to determine how much cash would remain. Research from other countries suggests that with the incomes received from cash cropping, households can purchase food in the market. The increased demand for food can provide a stimulus for private traders, which benefits both rural producers and consumers. Indirect income effects from farmers shifting to food crops will arise from upstream and downstream production and employment linkages (Wandschneider and Garrido-Mirapeix, 1999). Thus, even though households are not directly involved in cash cropping, they can gain access for their surplus food production, off-farm employment opportunities in agriculture or in non-farm sectors, such as services or trade. The incomes can be exchanged for food. However, this issue needs to be examined further for Namibia. Employment opportunities arise where cash crops are processed. At present, there are no gins for processing cotton in Namibia since the quantities produced are not large enough to make processing feasible. The transition from food crop to cash crop production results in a diversified basket of crops. Rather than to depend only on millet, planting other alternative crops is a good strategy, which will be a source of income. In this way, risks can be minimized. However, in certain cases cash crops have disadvantages, such as vulnerable groups may experience food shortages and women and children could be nutritionally disadvantaged. Where local food availability declines and food demand increases because of cash cropping activities, food prices will rise. Net food buyer households cultivating cash crops may be able to satisfy their food needs through market purchases, even as prices rise but other net food buyers will not be able to do so. In this case, the vulnerable households will encounter food problems. It has been argued (Murwira et al, 2000; von Braun and Kennedy, 1994, Govereh and Jayne, 1999, Gladwin and Thomson, undated; Wandschneider and GarridoMirapeix, 1999) that the income and employment benefits of producing cash crops are not spread equally within households. Even though women are food producers, once agricultural production becomes commercial, the role of women is marginalized because men take over and assume control over household income. The nutritional status in the household could worsen, as men tend to spend less on food. However, there is no empirical evidence from sub-Saharan Africa or other regions to show that cash cropping has negative effects on the nutritional status of women and children (Wandschneider and Garrido-Mirapeix, 1999). The transition from cash crop to food crop production brings about certain advantages and disadvantages as indicated. Cash crop production is beneficial for farming households, but in Namibia, small farming households tend to stick to food crop production until their food security is guaranteed and apportion less land to cash crops than the larger farming households (CRIAA SA-DC, 2001(b); Vigne & Associates Consultants, 2000). Large and medium farmers own or have access to draught power therefore they can cultivate a greater proportion of the land area and make the transition to commercial production whereas small farmers cannot (Vigne & Associates, Consultants, 2000). The reliance on food from own food production, especially for small farmers is a response to high transaction costs and risks related to markets, employment and production. Research from other developing countries (Govereh and Jayne, 1999; Fafchamps, 1992; Kherallah et. al., 2000) has revealed that production for home consumption is maintained when farmers make the switch from food crops to cash crop production. In Namibia, the large farmers are the ones who can readily make the transition to cash crops since they are the ones who are marketing a surplus of their millet crop (Vigne & Associates Consultants, 2000). Cash crops can be produced in conjunction with millet, as some of the farmers are already doing. The small farmers, cultivating less than 4 hectares are meeting their needs and hardly any millet surpluses are marketed therefore a complete transition to cash crops may be difficult (Vigne & Associates Consultants, 2000). This issue is discussed further in the next section. However, since the Government is promoting the commercialisation and processing of millet, small farmers increase their production of millet by utilising improved seeds or fertilizers or combine millet production with cotton production. However, increasing millet production for commercial purposes, which can be an option for small farmers, is not so clear-cut because there are so many other factors at work. Much as the Government is making considerable efforts to increase the production of millet by providing support for research into improved crop varieties and techniques of production and the provision for credit that will allow farmers to expand their operation, the process is slow (CRIAA SA-DC, 2001 (a)). Production of millet is low and variable and this is linked to low rainfall, poor soils, poor yields, low input farming systems and a lack of incentives for producers, such as a guaranteed market or inputs to increase production. As a result of low production, very limited quantities are traded, which has led to the poor marketing of millet. According to (CRIAA SA-DC (2001 (a)), there is very strong demand for millet products hence indicating the need for increased production. 5. Constraints faced by small Farmers in Making a Transition from Food Crops Production to Cash Crops Production However, given that the holdings of the small farmers are less than 4 hectares, food production is the priority. Small farmers face several constraints such as the increasing burden placed on women, competition for labour, access to resources and the labour shortage that exists in the communal areas, which will tend to make the transition toward cash crops very difficult. 5.1. Increasing Burden placed upon women Due to significant rural-urban migration in the north of Namibia there are 87 men for every 100 women residing in the rural areas, thus resulting in women being involved in several activities (Ministry of Labour, 1998). Food production is just one of them, namely the production of millet, which is the primary crop and absorbs much of women’s time and in addition, other roles and responsibilities include collecting water, fetching firewood, caring for the family, assisting in clearing fields, ploughing and engaging in income generating schemes which must be fulfilled. These activities leave women with very little time to grow cash crops, even if they wanted to. With no other labour available except for young children and the elderly whose participation in agricultural activities is limited, the burden falls on women and the introduction of cash crop production could be an added strain. With a shortage of labour, relatively large parts of their holdings may remain fallow or it will not be cultivated in the most efficient manner. Smaller areas will be cultivated, which will negatively affect the nutritional status in the household. 5.2. Competition for labour Farming in the communal areas is characterised by a heavy reliance on labour intensive methods of cultivation. The larger the number of people in the farming households, the greater the possibilities to cultivate larger areas. However, if the larger households are comprised mainly of children and the elderly, then larger areas will not be cultivated and the household food security could be at stake. Children and the elderly contribute to agricultural activities in a limited way. Millet is often planted in late November with planting through December and the crop is harvested in April. In years of adequate rains, there might be the need to weed more often from December to March and solely women and children undertake this activity. Women and children will also be responsible for harvesting of millet in May and thereafter will thresh, clean and store the crop. Threshing is considered as a work bottleneck, particularly in a year of above-average harvest because it competes with other on-farm and off-farm activities (Food Services Group, 1990; CRIAA SA-DC, 2001(b)). Millet has similar labour requirements to cotton when threshing and storage labour requirements are considered. Cotton is harvested from April to July, which overlaps with the time when millet and other food crops are harvested. Since the production of millet is an issue of ensuring that household needs are met, households tend to commit their labour to plant, weed and harvest the food crop prior to cotton (Vigne & Associates Consultants, 2000). In addition, as the number of crops cultivated on the farms increases, there will be competition for labour as to which crops to grow and at what time (Govereh and Jayne, 1999; NPC, 1999). Vigne & Associates Consultants (2000) indicated that where relatively small areas are under cotton production, the availability of labour is unlikely to be a problem. The availability of labour becomes a limitation when the total area under field cultivation increases beyond a certain threshold. Beyond the threshold, the household ceases to produce because it will have to pay for additional labour, which it is not willing to do. As a result of the influx of people out of the rural areas to urban centres and commercial farms in search of higher incomes, labour shortages result. This could be due to the low returns that are earned from working on communal farms when compared with urban centres and other places. However, research is needed when it comes to the returns earned from agricultural activities in the communal areas. 5.3. Access to Resources Agriculture is dependent upon variable seasonal rainfall and communal farmers in Namibia depend on it to a great extent, such that a poor season means a decline in crop production, thus it can jeopardise food security at the household level. Many farmers are very vulnerable to unpredictable rainfall patterns and food crop production is a risky business. Farmers face other constraints such as poor access to labour, unavailability of inputs such as fertilisers and seeds, labour, capital, namely access to credit, markets and sometimes the services of agricultural extension agents. Since women are disadvantaged due to cultural, traditional and sociological factors they do not have access to many of these resources and it poses very serious problems since they are the farmers (University of Namibia, 2000). The lack of access to agricultural inputs, such as farmyard manure, chemical fertilisers and improved seeds contributes to low production. A survey (NPC, 1999) revealed that traditional seeds are most commonly used on the areas that communal farmers cultivate. Traditional millet seeds were used on 49 percent of the total area planted with millet and traditional sorghum seeds were used on 78 percent of the area under sorghum production. Improved seeds were not widely used except in the case of maize. It is more economical and cheaper to use traditional seeds. Farmers keep seeds from selected millet heads for planting during the next season by selecting the large heads from the best-looking plants in their fields (CRIAA SA-DC, 2001(b)). Access to improved seeds would increase the yields of the millet cultivated. Often yield-increasing inputs of production or programmes are not targeted to women farmers because their non-market subsistence activities are not considered to be important. This ‘invisible factor’, (the fact that their nonmarketed subsistence activities are not recognised) is one of the gender-related constraints that lower women’s productivity and is not mentioned as one of Africa’s food security problems (Gladwin and Thomson, undated; UNFPA and ILO, 1994). Much as the returns from cash crops are higher than from food crops, it must be noted that farmers in the NCA produce under conditions of uncertainty, given the unpredictable rain, marginal soils and high transport costs. Farmers will therefore take decisions based on subjective assessments of outputs, incomes and risks in relation to competing livelihoods. In most cases they will tend to play it safe and secure the production of staple grain crops (Vigne & Associates Consultants, 2000). If these farmers would convert from millet to cotton, and output or income falls, some would not survive. Therefore the risk is too great. Bearing in mind the constraints and farmer behaviour, one option is for the small farmers to increase millet production, which provides less risk than cotton production and provides lower returns. The full potential from millet production needs to be further investigated because it is a less risky crop for small farmers to produce. Since production does not meet the consumption needs of the communal area growers, increasing millet production might be a good start for farmers to market millet. Increased production of millet will depend on the price differential between millet and maize meal. The wider the margin, the more attractive millet is as a crop (CRIAA SA-DC, 2001(b)). However, promoting the production of millet for commercial purposes is not such an easy issue, especially where household needs are not totally met because it may encourage some farmers to market their reserves, which can be used during drought periods. Much as the price of cotton varies, but the returns tend to be higher than from millet, the other option is for the smaller farmers to allocate small portions of their fields to cash crops, rather than to put all the emphasis on either food or cash crop production. Much of the emphasis to reduce the constraints mentioned above has been placed on Government but the private sector can also play a role. Findings from other parts in Africa have shown that there are a variety of arrangements through which the private marketing and processing firms have related to smallholders (Govereh and Jayne, 2000). However, reliable markets and predictable returns will drive the private firms to engage in such arrangements. Some private companies encourage the delivery of smallholder products without extending major initial outlays or credit that will possibly not be recovered. Others will provide distribution of credit, inputs, management and extension training and seasonal labour support to participating farmers who have passed some screening requirements. To some extent, Agro-Business and Consultants (ABC) in Grootfontein is providing some of the services, but other private firms would be essential in the process. The more successful arrangements between private firms and small farmers have resulted in increased food crop productivity and incomes. Producing cash crops under certain conditions has indirectly also benefited food crop production (Govereh and Jayne, 2000; Kherallah et. al., 2000). This issue needs to be researched in the case of Namibia. The farmers that are producing surplus millet can produce cash crops on a larger scale. With greater access to land, credit and labour, producing on a large scale does not pose a problem. 6. Impact of HIV/AIDS One of the greatest challenges that Namibia faces, including the agriculture sector is HIV/AIDS, which will affect farmers’ decisions to make the transition from food crops towards cash crops. Considering that Namibia is one of the seven countries in the Southern African region most affected by HIV/AIDS, this is an issue that deserves to be highlighted. The smaller communal farmers with fewer productive household members will be worse hit and their food crop production will be negatively affected. However, no quantitative study has been undertaken to document how farmers will be affected by HIV/AIDS in terms of production of crops and household labour. HIV/AIDS affects people in their most productive years (25 to 45 year olds). One could argue that since many of these people in this age category represent migrant workers, who are not even residing in the rural areas, HIV/AIDS is not a problem. However, it must be noted that the migrant workers complicate the problem and contribute to accelerate the spread of HIV/AIDS. Studies in South Africa have indicated that migrant workers, who are far from home get lonely and then get involved in a number of relationships, which can result in their contracting the virus. Since they visit home at regular intervals, they spread the virus to their partners (UNAIDS and UNDP, 1999). The HIV/AIDS epidemic hits women hardest due to their biological make up and their low status in society and in sexual relationships, thus increasing the vulnerability of poor rural women, who play a key role in the agricultural work force. In 1999, women accounted for 54% of all reported new HIV cases (Ministry of Health and Social Services, 2000). In situations, where they are infected and get sick, the production of food crops is bound to be affected thus resulting in a serious drop of agricultural productivity and hence in the nutritional status at the household level. Women themselves may engage in commercial sex in periods of economic stress, thus getting infected. Tied to the issue of migrant labourers is that they come back home to their villages of origin to die, thus placing the burden of the costs of HIV/AIDS on the rural communities. According to FAO (2000), 7 million agricultural workers have died of AIDS since 1985 in the 25 hardest hit countries. It is projected that 16 million could be dead before 2020. In the northern regions of Namibia, the HIV prevalence rate in pregnant women is high as 33% in Caprivi, 16% in Kavango and ranging from 21% in Omusati to 28% in Oshana4. These regions have the highest rates when compared with other regions in the South and Western parts of the country (Ministry of Health and Social Sciences, 2001). Already households are facing situations where productive household members are dying from the disease. FAO (2000) projected that Namibia will have lost 26% of its agricultural labour force through HIV/AIDS from 1985 to 2020. AIDS reduces productivity, as people become ill and other family members, particularly women have the responsibility of nursing sick family members, mourning and attending funerals. In Namibia, the mourning period led to a drop in agricultural production and in Uganda, the mourning period can last for 40 days, hence taking away precious time from agricultural activities. This results in severe labour shortages for both agricultural and other activities (FAO, 2000 and Phororo, 2000). A number of farm changes in Eastern Africa have arisen as a result of labour shortages, such as a reduction in the land that is cultivated, a decline in crop yields and a shift from cash crops to subsistence crops (FAO, 2000). Results from a study undertaken in northern Namibia revealed that not only is agricultural production affected by deaths in families but also by deaths in the community. As households spend more time mourning for the death of relatives, people are unable to continue with their agricultural activities, thus leading to delays in some of the tasks (Engh et al., 2000). It is clear that HIV/AIDS is a serious threat to increased agricultural production and with the elderly and children left in the villages, what does that say about household food security? As the number of productive family members declines, the elderly in Namibia who earn a pension of N$200 (equivalent of US$25) per month will have the burden of looking after grandchildren, thus endangering both short-term and long-term household food security. In addition, HIV/AIDS places severe pressure on declining financial resources since medication, hospital, food and ultimately funeral expenses are incurred. This means that less income is allocated to certain activities and in some cases, children have to be withdrawn from school since fees cannot be paid and they assist with either domestic tasks or agricultural activities. A fall in labour at the household level in the communal areas of Namibia where women undertake agricultural tasks among other activities will result in a situation where the land cultivated gets progressively smaller. In households where women have died, men will have to assume other responsibilities, such as looking after the children or in most cases, will arrange for a female relative to become a part of the household (Engh et. al, 2000). Taking into consideration all the constraints, cash crop production cannot be the only way to proceed. Recognising that it is women who undertake much of the agricultural activities, strategies need to be directed to them. In many countries, food production is under the domain of women whereas production for sale is under the domain of men. Farming should become a 4 To obtain a national average of HIV prevalence for pregnant women, the regional prevalence figures were calculated as the mean of the prevalence from all sites within each region. HIV prevalence was then weighted according to the population size of each region to come with a weighted national prevalence among pregnant women. worthwhile activity but as long as it remains for subsistence, people will search for other options. The shortage of labour will escalate with the high spread of HIV/AIDS as it affects the most productive members of the population. The intensification of food production and cash cropping are mutually dependent and one cannot be obtained without the other. 7. Conclusions Even though the opportunities from agriculture are limited given the variable rainfall, the production of millet in the northern regions will continue to play a very important role in the livelihoods of the population. Millet is mainly grown for subsistence but Government is making considerable efforts to encourage increased production and to introduce cash crops such as cotton in the Northern Communal Areas. The communal agricultural sector is dominated by millet being cultivated mainly for home consumption since markets for millet, unlike for maize was never explored and it is the informal channels, such as sale to small traders, relatives or neighbours that have played an important role. A distinction was made between small, medium and large farmers in the communal areas, whereby a small farmer was defined as one who cultivated less than 4 hectares, a medium farmer cultivated from 1 to 4 hectares and a large farmer cultivated 5 to 20 hectares. In some cases, the large farmers were producing surplus millet, which was being sold to millers, whereas small farmers were just producing for household consumption. These larger farmers are in a better position than the small farmers to switch to cash crops, such as cotton. Cash crops are an attractive option because employment opportunities will be generated, incomes will increase and risks are spread among the various crops. However, the success of cash crops is contingent upon reliable markets and predictable returns. There are disadvantages associated with cash crops, where the prices of food increases and the more vulnerable households are unable to afford them and since women are often marginalized when it comes to cash crops, men may benefit more than women. The money may not necessarily be spent on food (Vigne & Associates Consultants, 2000). This paper has attempted to show that the issue of whether farmers should produce cash crops or food crops is not a clear-cut case in the North Central Areas, especially for smaller farmers. It is a complex issue because this is a sector characterised by poverty and by production using mainly family labour to grow food for consumption, rather than for the market. Cash crop production generates higher incomes that food crops, as indicated by the gross margins for cotton and millet however small farmers who have yet to achieve household food grain security are unlikely to adopt cash crops to a significant extent, unless the crops prove to be secure options in the long run. Small farmers can increase their production of millet, so that surpluses can be marketed for an income. However, even when it comes to increasing the production and marketing of millet, several issues such as low and variable production by farmers, very low returns to labour, low yields, poor market access and poor storage still need to be addressed. The establishment of the MMIU is one endeavour to address some of these constraints. The other option is that the small farmers can produce both millet and cotton since they face constraints, such as competition for labour, lack of access to credit and markets and the increasing burden placed on women, which would not make a complete switch possible. Farmers whose food grain needs are already secured from non-farm income or have surpluses, can opt for cash crops purely as income generating schemes. The relationship between sources of income and cash crop production is an interesting issue, which can be further investigated. Evidence from other countries has revealed that the production of cash crops has spill over effects on input use and food crop productivity. Therefore mechanisms should be in place to facilitate the production of cash crops and both the private sector and government can play a role in the provision of credit, seeds, infrastructure and markets. However, this will only be undertaken when the private sector is convinced that positive returns can be made and at present, the quantities of the cash crops produced are limited. One of the most serious threats to household food production is the impact of HIV/AIDS, which can severely hinder the transition to cash crop production. If difficulties are encountered for the production of food crops, then it is even more unlikely that cash crops will be produced. However, this issue needs to be further studied to determine in what ways agriculture production will be specifically affected and how labour will be allocated between various crops. Given that the returns from food crop production are low and that HIV/AIDS could aggravate the labour shortage problem, especially for the small farmers, it will be important to examine what other non-farm opportunities exist to increase incomes. The tourism industry and the processing of oils, leather and meat could be further investigated. The issue of gender needs to be addressed as a separate point since women play a key role, which can be unrecognised in the Northern Communal Areas. They perform many crucial roles such as food production, food processing and preparation, water acquisition, firewood collection, caring for the children and elderly and income-generating activities. They are overburdened with so many activities that they not able to fully participate in them. Their access to incomes and their roles in household decisions on expenditures have serious implications for household food security. 8. 8.1. Drawing up a Research Agenda Labour Issues Labour issues in the communal areas need to be further explored. What is of interest is whether the agricultural wages from cash crop production will act as an incentive to retain workers in the communal areas or off-farm employment remains more attractive. The utilization of unpaid household labour as opposed to the use of paid labour as a constraint for cash crop production needs to be examined since other research revealed that when farmers have to use paid labour, they cease to produce cash crops. The issue of labour shortages in the rural areas needs further research. 8.2. Negative Impacts from Cash Crop production Research in other countries has suggested that when production is for commercial purposes, men take over and the income is not necessarily used for food. Therefore, the nutritional status of women and children will worsen. This needs to be further explored in making the transition from food crops to cash crop production in the communal areas. 8.3. Millet production The full potential to be derived from millet production needs to be further examined. This is an area that has been raised by the MAWRD5 and was tabled in their strategy and action plan to address constraints, such as low and variable production, few value-added millet or sorghum products in the formal markets and the limited trade in millet and sorghum grain. Increased production of millet for sale could be an option for the smaller farmers. 8.4. Impact of HIV/AIDS on the Communal Farmers The impact of HIV/AIDS on the farming activities needs to be quantified and studied. There is no quantitative analysis on how this affects the areas that are cultivated, other than what was provided by FAO, 1999 that the areas cultivated would decline. Research on how the production of food and cash crops would be affected when household labour dies would address the issue of whether cash crop production is a viable option. 8.5. Role of the Private Sector The private sector could possibly play a role in cash crop production, but research on how it could facilitate the transition from food crops to cash crop production, particularly for small farmers would take away the emphasis from Government. At present, the provision of services, markets and resources, especially for millet is 5 Proceedings from a Workshop to Develop a Strategy for the Multiple Use of Mahangu and Sorghum convened by MAWRD and held on 27-28 June 2000 in Namibia often perceived as the responsibility of Government, but an arrangement could possibly be worked out between Government and the private sector. 8.6. Incomes in the Communal Areas The issue of whether cash crop or food crop production is the way of raising incomes in the communal areas needs to be further explored. The question of whether farmers are better off once they make the transition to cash production and earn higher returns and with that income then purchase millet for household consumption needs further study. Other off-farm employment opportunities may be a better option to raise household incomes and need to be investigated. In addition, the fact that farmers who have other off-farm income sources are in a better position to cultivate cash crops for income generating purposes suggests a relationship between sources of income and cash crop production, which needs further research. 8.7. Spill-over effects as a result of Cash Crop Production Research from other countries has revealed that spillover effects on input use and food crop productivity can result from cash crop production. Indirect income effects also arise from upstream and downstream production and employment linkages. Research is needed to determine whether this will be the case in the communal areas. 9. 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