Sparks, GDOrtmann, GFLyne, M2014-01-072011-03Sparks, G. D., Ortmann, G. F., & Lyne, M. (2011). An analysis of cooperative biodiesel production by smallholders in Kwazulu-Natal, South Africa. In Proceedings of the 18th International Farm Management Congress, 20-26th March 2011. (pp. 444-452). Methven, New Zealand. Retrieved from http://www.ifmaonline.org/pages/con_full_articles.php?abstract=601978-92-990056-6-8https://hdl.handle.net/10182/5771The South African biofuels industrial strategy promotes a development-oriented strategy with feedstock produced by smallholders and processed by traditional producer-owned cooperatives. This study examines a proposal to apply this strategy to small farmers in KwaZulu-Natal, using soybeans as feedstock for biodiesel production. First, it is argued that value-adding cooperatives established under South Africa’s Cooperatives Act would fail to attract the capital and expertise needed to process biodiesel owing to ill-defined voting and benefit rights. Second, a mixed integer linear programming model is used to check the viability of producing biodiesel from soybeans, viewed from the perspective of the smallholder as grower and co-owner of the processing plant. It is concluded that smallholder participation would require a rental market for cropland, coownership of the processing plant in an investor-share cooperative, information and training, and a high level of price support.pp.444-452enCopyright © 2014 IFMA.biofuelsubsidiessmallholder marketing cooperativesrural developmentSouth African biofuels strategyConference Contribution - published