Water marketing in the Crocodile River, South Africa.

Book Title: NA
Year Published: 2005
Month Published: NA
Author: Nieuwoudt, W. L. ; Gillitt, C. G. ; Backeberg, G. R.
Book Group Author: NA

Transfers of water in the Crocodile River (South Africa) above and below the gorge (near Nelspruit and Malelane) were studied based on a survey in the area during November 2003, followed up by telephone interviews during March 2004. A total of 18 farmers were interviewed, consisting of 6 water buyers, 9 sellers, and 3 who were neither buyers nor sellers. Almost all the water trades (permanent and rentals) observed in this study were from farmers above the gorge to farmers below the gorge. In order to study whether the water market promotes efficiency the data were subjected to several statistical analyses (principal components, ridge regression, and logit). It is concluded that in the transfer of water some attributes in the purchasing area such as lower production risk (for sugarcane) and lower financial risk and better cash flow (for bananas and sugarcane) were more important than the income per cubic meter of water. Water supply in this area is highly irregular while farmers were found to be extremely risk averse especially as far as down-side risk is concerned. The average water price in this area in recent years (2002-03) was between R2000 and R3000 per ha (1 ha=8000 cubic metre). Buyers are large progressive farmers that purchase (and rent) from many sellers (or lessees). It is concluded that information (sale prices and rents) is asymmetrical. Few permanent transfers have taken place in the Crocodile River in recent years. It is concluded that there are reasons why transfers at present are not processed and role players should discuss these reasons and possible solutions before further action is taken.

Pages: 383 - 401
URL: http:////0-search.ebscohost.com.catalog.library.colostate.edu/login.aspx?direct=true&AuthType=cookie,ip,url,cpid&custid=s4640792&db=lah&AN=20053210211&site=ehost-live
Volume: 44
Number: 3
Journal: Agrekon
Journal ISO: NA
Organization: NA
Publisher: NA
ISSN: 0303-1853

bananas, crop production, efficiency, irrigation water,marketing, prices, risk, sugarcane, water allocation, South Africa,Musa, Musa paradisiaca, Saccharum, Saccharum officinarum, Musa,Musaceae, Zingiberales, monocotyledons, angiosperms, Spermatophyta,plants, Saccharum, Poaceae, Cyperales, Southern Africa, Africa South ofSahara, Africa, Developing Countries, Threshold Countries, AnglophoneAfrica, Commonwealth of Nations, Agricultural Economics (EE110),Horticultural Economics (EE111) (New March 2000), Natural ResourceEconomics (EE115) (New March 2000), Horticultural Crops (FF003) (NewMarch 2000), Field Crops (FF005) (New March 2000), Plant Production(FF100), Soil Water Management (Irrigation and Drainage) (JJ800)(Revised June 2002) [formerly Soil Water Management], Water Resources(PP200)

Source: EBSCO
Series Number:
Document Type:
Subject Category: