Measuring Smallholder Comparative Advantage in Three South African Provinces

A major policy issue in South Africa is the redefinition of the role of the previously disadvantaged smallholder agricultural sector in providing rural livelihoods. This study shows that black small-scale farmers do produce certain agricultural activities both profitably and efficiently. This has major implications for broader rural growth and development. Agricultural policies aimed at promoting commodities that best make use of resources are required to exploit potential linkages with non-agricultural sectors of the economy.