Abstract

Using primary data collected in Ludzeludze and Bhekinkhosi/Mliba RDAs from 80 smallholder farmers in the 2008 cropping season, the study used a Cobb-Douglas production function model to analyze the contribution of savings and credit cooperatives to food production in Swaziland. The results from the analysis indicated that on average, members of savings and credit cooperative societies used capital worth E 6185.00, compared to E 4520.00 that was used by non-members on crop production. Households who are members of savings and credit cooperative societies had an average maize yield of about 2.6 times that of households who are non-members. Similarly, average yields of potatoes for members is about 2.7 times those recorded by non-member households and average yields of beans of about 2.2 times than those obtained by non-members. The analysis reveals that households who are members of savings and credit cooperative societies produced more output per hectare of maize, sweet potatoes and beans than those households who are non-members. The high yields for members of savings and credit cooperative societies could be attributed to their ability to spend more on improved seeds, pesticides, fertilizers and other farm inputs. All the independent variables in the production model were found to explain 75.3% of the variation in the total amount of food crop produced by the farmers. The regression coefficient of capital used in food crop production indicates that all things being equal a 1% increase in capital used the value of food crops produced would increase by 0.34%, while a 1% in increase in labour and in land would result in 0.088% decrease and 1.027% increase in output respectively. The study has shown that savings and credit cooperatives play an important role in improving agricultural production. Hence there is a need to encourage farmers to join and save with cooperatives in order to have access to microfinance and improve their production through the use of improved seeds, technology and fertilizers.

Key words: Smallholder farmers, savings and credit cooperatives, contribution, food crop production.