Local economic development, an emerging reality in sub saharan africa

3.5: Community Driven LED Case Study in the Rural District of Hertzog

In the vision of LED in the rural district of Hertzog of SA, we are going to look at farmers Cooperative Society which seeks to give support to the vulnerable groups through participation and endogenous use of resources for a sustainable development, job creation and poverty alleviation (Canzanelli, October 2001: p. 34).

3.5.1: The Study Area

Hertzog is a rural village in the Eastern Cape within the District of Mpofu of the former Ceiskei Homeland. The cooperative includes Hertzog and Fairbain area with a population of about 1500 people. Unemployment in the area was about 84% of the economically active population before the cooperative was formed and the poverty levels are high. This has led to a high dependency ratio with 35% of the population having to support others. The area lies in the valley of the Katberg Mountains and in the upper catchment region of the Kat River. White farmers, who practice intensive irrigated farming predominantly for tobacco and citrus, settled there in the 19^th century. Although the white farmers left the area in the 1970’s the farm workers remained on the land. Attempts to re-establish farming on the valley by the Ceiskei department of agriculture in 1980 and a religious organization in 1992 failed because of lack of support from the local community (Nels, 1999: p. 218-219).
National political change, escalating unemployment, poverty and the consciousness that attempts had been made to re-establish the farm, prompted the broader Hertzog community to re-establish the farm. This led to a series of community workshops run by community organizations. The ending of state repression by 1994 allowed local leaders to be identified who took control of local affairs to explore possibilities for their own future. The community realise that their strength lay in the agricultural sector given their farming skills, sufficient rain fall, a river, the abandoned farm land and farm equipment. The success of the project is based on the notion that the process of development should be vested in the community where the development initiative has its origin. The community will tend to have greater ownership over the process of development and are bound to work for the success of the project as they benefit directly from it. The cooperative leaders negotiated with the government departments and a permit was granted for the community to farm the valley and the abandoned machines rehabilitated for use (Ibid 217 – 219).

3.5.2: Hertzog Agricultural Cooperative (HACOP) Initiative

The rural community consented to set up a farming cooperative called HACOP whose aimed was:

1. 
   To educate, empower members of HACOP to operate a self-sustainable and economically viable gardening project on a hectare of land each.
   
2. 
   To produce all year fresh vegetables for the local and neighbouring markets.
   
3. 
   To optimally utilize the available land for agriculture.
   
4. 
   To promote an agricultural habit.
   
5. 
   To generate adequate income for its members (Nels, 1998: p. 220).
   

Membership to HACOP is based on the purchase of 100 shares at 1 Rand² each, which provided the cooperative with its initial capital. The venture started with 23 members who occupied 23 hectares of land with sufficient piping for irrigation. HACOP leaders are members who make and implement decisions based on shared experience as farmers. Agribank gave HACOP a loan for the project in 1994 at the inception of the project (Ibid, p. 220-221).
The success of the scheme is partly because they have a sense of mutual self-reliance that prevails amongst HACOP members. Market gardening suits the labour intensive nature and irrigation of HACOP small farm systems for producing cabbages, potatoes, tomatoes, spinach and a few fruit trees. Productions are mainly for sale in the local and regional markets, and for household needs. This has led to profits between 1000 to 7000 Rand per hectare per growing season and consequently improving household incomes. The economy of the valley has been transformed. The success of the first phase led expansion of HACOP farm size to all willing members of the valley and the farms were producing enough to meet the repayment of the loan deadline. HACOP was a market driven project, which paid off as members improved on their income. The achievements of the HACOP project have motivated the department of agriculture to assign an extension agric officer to assist and advice members. They equally benefit from bulk buying through cheap prices from their external suppliers of their inputs (Ibid, 222- 224).
The HACOP has led to sustainable employment and improved farming capabilities (training) of members through the establishment of 83 small scale farmers who never had stable incomes before the establishment of the project. It has also led to empowerment and the improvement of the quality of life of the members through community involvement and a sense of ownership which enhances the participation of members in decision making. It has led to the improvement of the infrastructure of the farming community through the rehabilitation of the machines, farm houses and roads etc (Nel, 1998: p. 227-228 and DPLG, Section B, 1998).

3.5.3: Flaws of HACOP

Inadequate piping led to frequent maintenance of the irrigation system which increases cost. Secondly the nature of farming is labour intensive with the only machines being diesel pumps and three tractors for ploughing (Nel, 1998: p. 223).
The intensive market oriented farming system requires high level of skills and technology, which the individual HACOP members lack but is generally available in he cooperative. This is further compounded by the fact that there is no accurate statistic to evaluate out put from an individual and a community basis. The successes attained and the desire to thrive led to friction among members (Ibid, 223-224).