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Exam (elaborations)

OBS 371: Assignment 1

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This was my groups project for OBS371 assignment 1. We did very well and won the most viable business idea for the module.

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,1. The social issue: Farmers inaccessibility of markets

The social issues experienced in Mamelodi within the agricultural sector is that local farmers are struggling
to find a commercial business to supply their products and there is a lack of land being specifically allocated
to farming in the community by the government. This has resulted in the community having to buy back
produce from supermarkets at a marked-up rate. Hence, there is a lack of affordable produce available to
buy within the community and a lack of suppliers available to sell locally produced goods. The parties who
are most affected by the social issues are the farmers as well as community members. Community
members are greatly affected as they often must travel a lengthy distance to town to buy fresh produce,
some of them don’t have cars and money for public transportation.

The lack of local farming and its distribution within South Africa as a whole and within the community of
Mamelodi has resulted in a struggling demographic of citizens who find it extremely difficult to be
profitable and to provide for their respective communities. According to the most recent analysis of
Essential Food Pricing Monitoring reports, that were issued by the Competition Commission, barriers of
access to finance, infrastructure and routes to the market have left emerging and small-scale farmers
hopeless with poor yields, low productivity and struggles in growing their operations. The report also
includes a thesis reiterating the fact that after the Covid-19 Pandemic, customers have been increasingly
buying local as a result of climate and environmental concerns, quality and logistical considerations and
food safety. The commission states that this new trend after the pandemic could favour small-scale and
urban farming operations as shorter supply chains can save transport and other costs. In this aspect we
have found that the future of farming in Mamelodi can be one to be sought after and investigated further.
After conducting research among the locals in Mamelodi, many of them had similar points to focus on such
as the agricultural market is opportunistic; there is enough land to allow for local production to take place;
capital issues are relevant in every sense of the word and that if cheaper options were provided, they
would engage in purchasing from these localised farms/distribution centres. 1

The commercialisation of local/emerging farmers in South Africa is essentially the most important aspect of
the social issue that local farmers in Mamelodi are experiencing. Urban agriculture can be a life changing
solution that the members of Mamelodi can use to put food on their tables. It offers members of the
community an opportunity to not only learn new skills but cut down on expenses exponentially in terms of
food and other related resources. It is therefore very important to look for methods of generating and
implementing sustainable agricultural programmes. The importance of these methods relates to reducing
unemployment, keeping the youth from the streets, and giving them an opportunity to expand their
knowledge and skills, promoting entrepreneurship and aiding SME’s and existing entrepreneurs in getting
their respective businesses operational and profitable. Our focus for this project, therefore, rests on the
ability to have community members engage collaboratively to fund and allow for the expansion of small-
scale, localised farms and farming businesses. 2

There are several factors that can be taken into consideration when referring to the social issue of market
inaccessibility within agriculture in a local context such as land utilisation, the growth of big retailers and
lack of access to markets. The lack of access to fresh produce markets is a result of lack of start-up capital,
planning, transport, and basic equipment (in addition to the lack of land utilisation and dominating
supermarkets). The members of the Mamelodi community have the ambition and products available, but
are lacking the environment and resources to sell these goods. 3 For these several reasons, the social issue
of market inaccessibility is of growing concern within the local context of Mamelodi.

Local businesses are involved in trying to solve this issue with low capital. Large businesses have taken a
large cap of the market leaving small businesses and low-income earners without fresh agricultural
products at an affordable price. Active community members are seeking volunteers and donors to help
1
(Sources:https://www.news24.com/fin24/economy/sa-losing-more-and-more-farmers-as-agriculture-faces-tough-
challenges-20210908)
2
(Sources:https://repository.up.ac.za/bitstream/handle/2263/26586/Complete.pdf?sequence=10)
3
(https://www.youtube.com/watch?v=55-69sXR_bo&feature=emb_title)

, start up a flowing solution to this problem. The affected people, feel that this problem also contributes
towards many of the other problems that they are facing which is unemployment, lack of education and
the inability to attain fresh produce conveniently at an affordable price. The active community feel that
there is room to create a systematic chain as there is land readily available, and many members are willing
to work towards creating a successful chain as a large of the youth is unemployed.

2. Design thinking process

2.1 Empathise

Upon further analysis of the social issue, we determined two critical users - the Mamelodi community
members as well as the Mamelodi University students. To better understand both users, we used two
methods to get opinions and thoughts regarding inaccessibility of markets. For the Mamelodi community
members we used a telephone interview to get their views surrounding farming and whether they would
want local farmers from Mamelodi to supply their fresh produce. For the Mamelodi University students we
used an online survey to better understand their views. The table below gives a summary of the
empathising process.

Mamelodi community Mamelodi students

Say: Community members expressed that they would Say: Students said prices at supermarkets are
change their buying habits from supermarkets to local not suitable for students, and it’s hard to
farmers if local farmers offered lower prices. purchase all their necessities on a student
budget.

Think: Community members think the prices of Think: Students think that the local farmers
products at supermarkets are expensive, this from Mamelodi can supply fresh produce and
negatively affects their shopping experience as they meat directly to the buyers.
must go to different supermarkets and compare
prices. They often resort to buying no name brands.

Do: members do buy from local farmers and to Do: Students are willing to buy fresh produce
increase their support to local farmers, members are from local farmers.
willing to join a farming app for the community, this
app will assist them to trade amongst themselves.


Feel: Community members have feelings of concern Feel: Students are excited because both the
regarding scams that occur on online markets - farmers and the buyers would benefit from
ordering food online and then the food never gets selling to the community - the farmers business
delivered. will be able to grow and the buyer will be
getting fresh products at affordable prices.


The telephone interview and online survey are available on the appendix.

2.2 Problem definition

The issue of land utilisation, as mentioned in the Mamelodi IDI, is that land has not been specifically located
by the government within the Mamelodi community to allow for fresh produce markets or been tested for
arable soil. This then prevents further research and development that could allow for farming to take place
on a mass scale. However, there are members of the community who have started farming on a small scale,
thanks to NGOs such as Betereinders 4

4
(https://www.youtube.com/watch?v=h_tma0Fffs4)

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