Lessons from last year’s cabbage price crash that affected small-scale farmers

Last year, the government had a good idea to help farmers with inputs. They wanted to assist small-scale farmers by giving them cabbage seedlings.

By Maile Matsimela, digital editor at African Farming

The thinking was simple: Give farmers the inputs they need, and they will grow crops to sell and make money. But sometimes even the best intentions can lead to problems.

What happened next was a disaster for small farmers. Because everyone received the same crop seedlings at the same time, too many farmers planted cabbages. When harvest time came in September, October and December, the fresh produce markets were flooded with cabbage. There were simply too many cabbages and not enough buyers.

The result? Cabbage prices crashed to between R1.50 and R2 per head – prices so low that many farmers couldn’t even cover their basic costs.

Also read: KZN farmer support applicants receive agricultural inputs

Real Stories from Real Farmers

Mfiso Matlou, a cabbage farmer from Groblersdal in Limpopo, experienced this pain firsthand. He had to watch his cabbages rot in the field because hiring a truck to transport them to markets in Johannesburg or Springs would cost more than he could make from selling them. Imagine working months to grow a crop, only to let it rot because you can’t afford to get it to market.

At a recent cabbage farming workshop in North West, I spoke with farmer Tsholofelo Maimane. Although she specialises in cotton, she also plants cash crops to keep the business moving. Maimane witnessed the low cabbage prices at the Pretoria market during the harvest season. She was deeply concerned about what she saw and believes that commodities should be diversified. She also thinks farmers should study previous market trends to avoid planting plenty when everyone else is doing the same thing.

Mfiso Matlou and tractor driver Bonginkosi Gumede on one of the three tractors at the farm. — Mfiso Matlou and tractor driver Bonginkosi Gumede on one of the three tractors at Matlou’s farm. Matlou is one of the farmers who was affected by the massive drop in cabbage prices. Photo: Maile Matsimela

Who Really Benefited?

The irony is that although small farmers suffered, large commercial farmers could still make some profit. Why? Because they could still afford to sell large quantities even at the crashed prices. They had the volume to make the low prices work for them.

This means the free seedling programme ended up helping the farmers who needed help the least, while hurting those it was designed to assist.

Also read: Clever planning: How a Limpopo farmer built a thriving cabbage business in 9 months

A Better Way Forward

The intention to help farmers with inputs is good and should continue. But we need to be smarter about how we do it. Here’s what needs to change:

Think about the market first: Before distributing any seedlings, we must ask: “Where will these crops be sold?” and “How much can the market absorb?”
Carry out area-focused planning: Different areas should focus on different crops. If one region specialises in cabbages, another should focus on tomatoes and another on onions. This prevents oversupply of any single crop.
Balance supply and demand: We need to group commodities and balance them area by area. Yes, we want farmers to produce enough food, but we must avoid oversupply that crashes prices.
Consider transport costs: Small farmers often can’t afford expensive transport to distant markets. Programmes should consider how farmers will get their crops to market profitably.
Think about timing: Stagger planting times so that harvests don’t all happen at once, flooding the market.

Also read: ‘Cabbage lady’ Wendy Moshakga started with nothing but determination

The Bigger Picture

When farmers lose money because of oversupply, the investment meant to help them becomes wasted. The return on investment (ROI) disappears. Worse still, the farmers who were supposed to benefit end up worse off than before.

This is what we call “misplaced investment” – money spent with good intentions but poor planning.

Conclusion

Supporting small-scale farmers with inputs is the right thing to do. But support without proper planning can do more harm than good. We need agricultural support programmes that think beyond just giving out seedlings. We need programmes that understand markets, consider logistics and plan for sustainable farming that actually helps small farmers make money.

The lesson from last year’s cabbage oversupply is clear: Good intentions must be matched with good planning. Only then will we truly help the small-scale farmers who need it most.