The development of the horticultural industry in Namibia : an assessment of the determinants of the global market competitiveness of table grape production

Thomas, Benisiu (Stellenbosch : Stellenbosch University, 2007-12)

Thesis (MScAgric)--University of Stellenbosch, 2007.

Thesis

ENGLISH ABSTRACT: The declaration of Namibia’s independence from South Africa in 1990 has seen the Namibian government aim to plan and implement development programmes that enhance a growing agricultural sector. The new government is facing challenges regarding the addressing of inequalities of income and the allocation and distribution of resources, which have resulted in implementation of the land reform programmes. On the international front, Namibia is a member country of various trade arrangements, such as the WTO, the SADC and SACU. The main driving force behind Namibia’s joining the international communities chiefly has been market access and trade policy reforms. The country’s agricultural sector, in particular the horticultural industry, in regards to table grape production, has been significantly affected by both domestic and regional policies, as well as by the WTO rules. The aim of this study is to determine the environmental factors that create a competitive advantage for the Namibian table grape industry in the international market. A detailed supply-chain analysis, augmented by Porter’s ‘diamond’ model, is used in this study to assess the determinants of the competitiveness of fresh table grapes. Interviews were conducted in informal, semi-structured questions. The questionnaires were mailed to several producers within the table grape-growing industry. Secondary information was obtained from reports, articles and research publications, among other sources. An expert assessment was used to verify information based on the reference methods. Consultations took place in the form of office visits and, in some cases, telephone interviews were held with different experts. The finding of the study shows that Namibia can supply the European markets during the northern hemisphere off-season with quality fresh table grapes. However, industry growth in the European Union (EU) market is constrained by limited free import quotas and high tariffs, specifically as regards seeded fresh table grapes, which are not exempt from such duties. Such constraints are in place despite Namibia’s meeting of international set quality standards, such as EUREPGAP. Moreover, there is potential for increasing supplies to the regional and Asian markets as well as the US market albeit to the lesser extent. Finally, Namibian fresh table grapes profitability is significantly affected by the high production and transaction costs incurred, as well as by the decline in business and the depreciation of the US Dollar against the Namibian Dollar. The study makes the general recommendation that producers should significantly reduce their transaction costs within the chain, by means of vertical co-ordination and integration.

AFRIKAANSE OPSOMMING: Met die verklaring van Namibië se onafhanklikheid van Suid-Afrika in 1990 het die Namibiese regering hulle dit ten doel gestel om ontwikkelingsprogramme te beplan en in werking te stel ten einde daardie land se groeiende landbousektor te versterk. Die nuwe regering moet tans uitdagings met betrekking tot inkomsteongelykhede en die toekenning en verspreiding van hulpbronne die hoof bied wat tot die inwerkingstelling van grondhervormingsprogramme aanleiding gegee het. Internasionaal is Namibië 'n lidland van verskeie handelsreëlings soos die Wêreldhandelsorganisasie (WHO), die Suider-Afrikaanse Ontwikkelingsgemeenskap (SAOG) en die Suider-Afrikaanse Doeane-unie (SADU). Die twee hooffaktore wat daartoe gelei het dat Namibië hom by die internasionale gemeenskappe skaar, is marktoegang en handelsbeleidhervormings. Die land se landbousektor, in besonder die tuinboukundige bedryf met die klem op tafeldruifproduksie, is aansienlik deur binnelandse en streeksbeleid asook deur die WHO-reëls geraak. Die doel van hierdie studie is om die omgewingsfaktore te bepaal wat in die internasionale mark aan die Namibiese tafeldruifbedryf 'n mededingende voordeel gee. Derhalwe gebruik die navorser 'n gedetailleerde aanvoerkettingontleding, ondersteun deur Porter se “diamantmodel”, om die beslissende faktore vir die mededingendheid van vars tafeldruiwe te evalueer. Onderhoude is met behulp van informele, semigestruktureerde vrae gevoer. Die vraelyste is aan verskeie produsente op die gebied van tafeldruifboerdery gepos. Sekondêre inligting is ook onder andere uit verslae, artikels en navorsingspublikasies verkry. Met behulp van 'n kundige evaluering is inligting op grond van die verwysingsmetodes geverifieer. Oorlegpleging met verskeie kundiges het in die vorm van kantoorbesoeke en in sommige gevalle deur middel van telefoononderhoude plaasgevind. Die studiebevinding toon dat Namibië die Europese markte gedurende die noordelike halfrond se tussenseisoen van gehalte- vars tafeldruiwe kan voorsien. Die uitbreiding van die bedryf in die Europese Unie (EU-) mark word egter deur beperkte gratis invoerkwotas en hoë tariewe aan bande gelê, in besonder met betrekking tot pitlose, vars tafeldruiwe wat nie van invoerbelasting vrygestel is nie. Hierdie beperkinge word opgelê ten spyte daarvan dat Namibië aan vasgestelde internasionale gehaltestandaarde soos EUREPGAP voldoen. Die moontlikheid bestaan boonop om lewering aan die streeks- en Asiatiese markte asook die VS-mark te verhoog, hoewel in 'n mindere mate. Laastens word die winsgewendheid van Namibiese vars tafeldruiwe beduidend deur hoë produksie- en transaksiekoste, asook deur die afname in sake en die waardevermindering van die Amerikaanse teenoor die Namibiese dollar geraak. Die studie maak die algemene aanbeveling dat produsente hulle transaksiekoste binne die ketting aansienlik met behulp van vertikale koördinering en integrasie moet verminder.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/18707
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