Growing wealth from nature: analyzing the profitability and determinants of high-value medicinal plants in smallholder production systems

Abstract

The revitalization of traditional medicine has intensified interest in medicinal plants; however, reliance on wild sources poses sustainability challenges. Despite the economic potential of medicinal plants, small farmers face challenges such as limited access to resources, capital, markets, and institutional support. The study examines the profitability of cultivating high-value medicinal plants by smallholder farmers in the Amatole District Municipality, Eastern Cape, South Africa. The research, based on data from 150 smallholder farmers (mostly literate women averaging 46 years old), shows a net farm income of ZAR 19,091.72 and a return on investment of 0.77 per growing period, indicating profitability despite obstacles. Factors influencing profitability include age, household size, farm size, and farming experience. Based on the study results, the study recommends policymakers and government interventions, such as improving market access, providing financial support, offering training, and enhancing institutional frameworks. It also stresses the importance of integrating cultural considerations and addressing knowledge gaps to empower smallholder farmers and optimize the economic benefits of medicinal plant cultivation, supporting sustainable rural development and economic growth.

Keywords

• Eastern Cape province
• value addition
• medicinal plant products
• profitability
• smallholder farmers
• Development Studies