Rural households livelihood strategies in communities around the Fort Hare and middle drift rural dairy projects in Eastern Cape Province South Africa.

In this study, rural households livelihood strategies in communities around Fort Hare and Middle Drift dairy projects in the Nkonkobe Municipality are explored from a household perspective. Rural communities around Fort Hare and Middle Drift dairy projects in Eastern Cape, South Africa are found choosing a multiple of livelihood portfolios that are linked to dairy project activities to increase food, generate income, and safeguard against risks and shocks. The dairy projects in rural areas can reduced the problem of shrinking livelihood options in rural areas were most of the households are relying on government grants which has characterised the rural areas with long queues during month ends. The main objectives of this study are, to assess whether the rural dairy projects set goals are being achieved; to identify dominant livelihood strategies of households living around dairy projects in Eastern Cape Province, South Africa and to identify determinant factors influencing rural households around dairy projects to choose certain livelihood strategies that improve their welfare. The study analysed socio-economic survey data that had been collected from households in six rural villages in Nkonkobe Municipality surrounding the Fort Hare and Middle drift dairy projects. The stratified and random sampling method was used. The descriptive analysis comparing the livelihood portfolios’ in the six rural villages around Fort hare and Middle Drift dairy projects has revealed that there is an increasingly important role of the non-farm economy in the area (income from activities not linked to farming) as compared to farming, non-labour (income from remittances and government grants) and non-farm activities that are combined with farming (non-farm and farming activities). The multinomial logistic regression model revealed, with respect to the household variables, social-economic and institutional related variables as some of the barriers faced by poor households in rural areas sharing boundaries with rural dairy projects to enter into various livelihood strategies. Results from this study outlined that rural communities around dairy projects do not rely much on one livelihood pathway but they link multiple strategies together to improve their standard of living. The study, therefore, conclude that rural dairy projects with activities that are complementing with rural livelihood pathways available can be trusted as a reliable and sustainable livelihood source to reduce poverty in communities which share boundaries with rural dairy projects