Factors affecting profitabilityAdditionally, the study also uncovered various factors that the Black farmers indicated as problematic during the production process.
The infrastructure resource appears to be a hindering factor for the majority of the Black farmers in Gauteng. The most critical one was the ownership and access to land as they make up almost 23% of the sampled farmers. Furthermore, the significant difference in farm sizes amongst the Black farmers was attributed through the government land reform policy that uses different programs to provide land to the previously marginalized, which is mainly black farmers. The majority of the respondents own less than 10ha, which was given to them by the government through land reform programs and those who own less than 2ha, are mostly those who were advised by the government to form cooperatives so that they can be able to access the land.
Those who access land as corporative, the piece of land that was given to them was divided according to the members of the cooperative as a result, they end up getting small pieces of land. The land that is normally given to cooperative groups is through permission from the municipality, which may have an effect on their sustainability and farming income because there is no certainty regarding the land that they use and they are unable to make an improvement, which may help them grow to become successful commercial Black farmers.In addition, availability of access to credit or financial support still problematic for the Black farmers that were interviewed in this study.
The Black farmers had a problem of being rejected by the lending institutions. The reason for their rejection is because they are deemed to be high risk and do not have the asset that can be used a surety for those lending institutions. However, their exclusion is commonly associated with them being regarded as lower class in terms of income stratum because Black farmers are regarded as poor and not profitable. This was a grave restriction for the Black farm enterprises concerning their business growth. Moreover, the majority of the Black farmers that were interviewed used transitional and savings product due to the fact that access to formal sector credit is nearly non-existent to them. It also one of the many hurdles that are faced by the small-scale farmers which are mostly Black farmers in Gauteng Province.
The fact remains that if Black farmers were given unlimited support financially they can be more successful than they already are without such support. Furthermore, this statement is supported by Anyiro and Oriaku (2011:69) stating that credit access is assumed to have a positive impact on the productivity of vegetable farm enterprises because availability of credit services allows the farmers to purchase the improved input varieties and hence upsurge the productivity and in turn upsurge marketable supply services (Anyiro & Oriaku (2011:69).