Social Perspectives On Hydroponics Production In The Nelson . - Core

municipality for job creation for the area. Electricity is available on site and a wellmaintained tar road connecting Rocklands with Uitenhage is less than 100 meters away. Funding Sources The initial capital investment was R3million co-funded by ECDRDAR, NMBM, ECDC, VWSA and DEDEA. 1.1.3 Walmer Hydroponics Project The Walmer Hydroponics Project was situated in Walmer Township (Gqebera) at 33⁰ 59’ 07’’ S, 25⁰ 35’ 00’’ E. The objective of initiating this project was to fight poverty and create jobs for project members and the Walmer community. This project started in 2006, with 10 members (later decreased to 7). They started with twenty tunnels which were funded by NMBM. A mentor tasked to manage the project and transfer skills to the project members was appointed by the municipality. The mentor was contracted to work on the project for six months while the beneficiaries formed a management structure and took over the business. The total area allocated to the site was approximately 4 ha. The group acquired the land from the local Municipality. The original project membership consisted of seven beneficiaries, comprised of six males and one female. Funding Sources The initial capital investment was R 2, 5 million which was co- funded by the NMBM and ECDOA. 1.2 Projects’ Business Model Two of the three projects, i.e. Walmer and TATI Hydroponics, were registered as cooperatives with the co-operative members as the beneficiaries. Emmanuel Haven hydroponics on the other hand was managed by the board of Emmanuel Haven 3

Wellness Centre. In all three projects the beneficiaries were also employees as well as members of the co-operative. Emmanuel Haven is a Non-profit Organisation with the hydroponics project as one of the projects at the centre. The Board was responsible for the finances and operations of the project. TATI hydroponics project was managed by the service provider based in Uitenhage, i.e. Uitenhage and Despatch Development Initiative (UDDI). This service provider was responsible for the overall management of the project, including operations and finances. The Walmer Hydroponics co-operative was responsible for the overall management of its project and funds were deposited directly into its account. The major funder, Nelson Mandela Metropolitan Municipality did not have much control over the general management of the project, including its funds. 1.3 Rationale for the study According to Matta & Ashkenas (2003), big projects have failed at an astonishing rate, despite major technology innovations: These efforts can consume tremendous resources over months or even years. Studies have shown that these projects have frequently delivered insignificant returns. The failure of the projects does not only have deleterious financial effects: it can also lead to demoralization of its members. Skhalele (2010), points out that in Limpopo various provincial departments have spent millions of rands on agricultural projects in an attempt to eradicate poverty within the province: however, despite huge expenditure, there has still been little impact on poverty eradication. According to Nkameleu (2011), hydroponic projects operate under highly challenging circumstances: these include a complex set of issues like inadequate infrastructure and difficult market access and multiple institutions - and hence distorted input and output prices. Furthermore there are individual decisions of thousands of farmers of which some are entirely outside the control of those who design, fund, implement and gain from them. But, these factors are mostly known and to a large extent predictable (at least in terms of estimated risks) at the time of project design and during project implementation. Hence, they can be managed. 4

Nkameleu (2011) further concludes that evaluation plays an important role by providing objective and credible assessments of performance and results, and by drawing lessons from past work: it can therefore contribute to stronger performance and better development outcomes in the future. Since there is very little information currently available on the topic, this study further aims to contribute to identification of the factors that contribute to the failure of these projects, despite all the funding and technical support provided by the provincial departments and the NMBM. 1.4 Research Aims and Objectives The objectives of this research are to: a) Identify the importance of hydroponic production to the livelihoods of residents of peri-urban areas of NMBM. b) Identify the constraints encountered by the three hydroponic projects that led to the failure of these projects. c) Suggest possible interventions required to overcome these constraints. 5

CHAPTER 2 2.1 History and origin of hydroponics According to Joseph (2010), the term hydroponics was first used in the late 1920's by a professor in California named Dr. W.F. Gericke. Hydroponics, as coined by Dr. W. Gericke, can simply be defined as the growing of plants in a water and fertilizer solution containing necessary nutrients for plant growth. It can further be defined simply as cultivation of plants without soil. Gericke developed a technique, pioneered by German scientists (Sachs in 1860 and Knop between 1861 and 1865), into a commercial means of plant production. Sachs and Knop were among a number of scientists during the 19th century to research plant nutrition and develop a chemical formula to overcome major set-backs in previous attempts at hydroponics cultivation. Hydroponic technologies, following on from Dr. Gericke's work, were further developed throughout the 1930s and 1940s in North America, Europe, and Japan. During WW II, the US Army used hydroponics to grow fresh produce for troops stationed on infertile Pacific islands. In America, Britain, Europe, Africa, and Asia, there were viable commercial farms operating by the 1950s. According to Sheik (2006), hydroponics is a very young science. It has been used on a commercial basis for only 40 years. Hydroponics has been adapted to many situations, from outdoor field culture and indoor greenhouse culture for growing fresh vegetables. It can also be used in the third world developing countries to produce food in a limited area and under controlled environment. Its only constraints are the need for sources of fresh water and nutrients. In areas where fresh water may not be available, hydroponics can be used through desalination of seawater. It has the potential application for providing food in areas where there are vast regions of non-arable land, such as deserts and dry coastal belts. Nowadays hydroponic culture is being used to successfully grow vegetables, flowers, fruit, and herbs in a great variety of countries across the world (Sheik, 2006). 2.2. Advantages of hydroponic production According to Sheik (2006), the science of hydroponics is characterized by the fact that soil is not needed for plant growth but the elements, minerals and nutrients that soil contains are definitely required. Soil is simply the holder of the nutrients, a place where the plant roots traditionally live and a base support for the plant structure. By 6

eliminating the soil, one also eliminates soil borne diseases and weeds and gains a more precise control over the plant’s nutritional requirements. According to the Hydroponics Guide (2011) & to Niederwieser (2001), the traditional growing of plants in soil can be unpredictable and a diverse range of problems such as unforeseeable changes in temperature, moisture holding capacity, available nutrient supply, proper root aeration, and disease and pest control are often evident. Hydroponics alleviates some of the problems of nature, while giving the farmer precise control of both the plants and at times, the seasons. This means that a hydroponic farmer can extend his production season and as well gain a competitive advantage over his competitors. In a hydroponic solution, one provides the exact nutrients the plant needs in precisely the correct ratios so that they can develop in a stress-free environment, mature faster and at harvest time provide quality vegetables and fruits that are acceptable to customers and consumers. With the development of plastics, hydroponics cultivation took another leap forward and this is now a widely accepted method of producing certain specialty crops such as tomatoes, lettuce, cucumbers, bell peppers, herbs, foliage plants, and flowers. Most of the tulips and roses exported from Holland are also grown hydroponically. The controlled environment for agriculture provided by hydroponics seems to be the answer to many of the difficulties associated with the production of outdoor specialty crops in the wake of continued soil degradation, loss of fertility, indiscriminate chemical inputs’ use, and above all, continued depletion of water resources (NDA, 2011). In traditional agriculture, plant roots grow in the soil to support the plant and search for food and water, whereas in hydroponics, a growing medium is used in place of soil to help support the plant and to absorb the nutrient solution. The roots of a hydroponic plant do not work as hard as those of a plant grown in soil because their needs are readily met by the nutrient solution provided. Ideal mediums are those that are chemically inert, porous, clean and able to drain freely (Greener solutions, 2013). Hydroponic crops can be grown all the year around, irrespective of seasons. Hydroponic technology offer the latitude and ability to grow premium quality produce using minimum space, water and fertilizer (Greener solutions, 2013 & Sheik, 2006). 7

Hydroponics Wizard (2012) states that in Cebu, a province within the Philippines, the authorities help poor households by encouraging urban food production and the use of hydroponics. The initiative is not only a way for poorer families to generate food, but also helps to generate additional income through the selling of their produce. Similarly, as mentioned earlier, hydroponics projects in the NMBM area were established to produce food in order to eliminate food insecurity and to provide jobs and income for project beneficiaries and the surrounding communities. 2.3 Challenges and reasons for failure in hydroponics production According to Pratt (2013), management abilities and skills are vital factors when growing hydroponics commercially. These include business skills and those related to successful crop growing. Possession of business management credentials is important because budgeting, accounts’ transactions and promotions are all part of a successful commercial hydroponics operation. It is also important to have a broad knowledge base in the area of hydroponics cultivation. Many farmers lack business skills, and likewise many business people lack hydroponic farming skills. Consequently, management can constitute a major challenge in the commercial hydroponics industry. There are also many aspects of growing hydroponics commercially that need to be considered, and as such there are a wide variety of common causes for failure when such items are overlooked. Some common causes for failure include lack of practical preparation, unrealistic expectations, failing to seek appropriate help, starting too big and following others’ approaches without sufficient comprehension (Sheik, 2006). According to NDA, (2011) & ARC (undated), some other problems that may be encountered are as follows: Pests and diseases can spread quickly to plants using shared nutrient solutions. Not all plant varieties are suitable for hydroponics. Expert skills and knowledge are usually needed to operate at optimum production capacity in a commercial setting. 8

Finding a market can be a problem. Many countries have experienced failure in hydroponic and greenhouse production through: Lack of information. Little government support. Charlatan ‘turnkey’ operators making unrealistic claims. System set up costs that are too high (Pratt, 2013). The production costs for hydroponics are very high and depend on many factors, including local climate, cost of labour, cost of materials, marketing costs, method of production and scale of production. The costs associated with these factors may be grouped into direct, indirect, and marketing costs (Acquaah, 1999). 2.3.1 Direct Costs a) Materials. Cost for materials includes expenditure on seeds and other planting materials, chemicals (including fertilizers, pesticides and hormones), growing media and containers (e.g. pots, trays, and flats). b) Labour. The size of the labour force depends on the level of automation. Some activities are hard to automate and hence must be done by humans. These activities include spraying, preparation of the growing media, setting up containers on benches, harvesting and cleaning. 2.3.2. Indirect Costs Indirect costs are generally described as overhead costs and include equipment depreciation, utility fees (e.g. water, fuel, and electricity), taxes, and administrative costs. Overhead costs may be about 25 to 40 percent of total production costs. Higher production costs therefore require growers to identify consistent markets willing to pay a premium price. This is not appropriate for poor peri-urban communities. Such market niches may take some time to develop in order to maximize returns. Growers with superior crops and off-season or year-round availability will have a marketing edge (Coolong, 2012). 9

Many farmers involved in these projects do not have skills for identifying these market niches, moreover transportation of produce is the most limiting factor as it is so expensive when taking into consideration high fuel prices. 10

CHAPTER 3 3. Research methodology 3.1 The Research Method Used A qualitative research approach was used as it seeks to understand a given research problem or topic from the perspective of a particular community (Hancock, et al 2009). The data concerning food production projects in NMBM was obtained from the Port Elizabeth office of Eastern Cape Department of Rural Development and Agrarian Reform (ECDRDAR). As previously pointed out three hydroponics projects in NMBM were selected for this study, namely the TATI, Walmer and Emmanuel Haven projects. I visited the projects for observations and also to conduct interviews with project members in the presence of ECDRDAR officials responsible for these projects. Primary data collection was undertaken at all three hydroponic projects in the Nelson Mandela Bay Municipality area during July 2013 by conducting interviews and a questionnaire survey. The number of respondents who participated were ten from Emmanuel Haven, se

SOCIAL PERSPECTIVES ON HYDROPONICS PRODUCTION IN THE NELSON MANDELA METRO MUNICIPALITY BY VIWE QENGWA Submitted in partial fulfillment of the requirements for the Degree of Masters in Development Studies in the Faculty of Economic Sciences at the Nelson Mandela Metropolitan University July 2015 Student Name: Viwe Keith Qengwa