Prospects for market diversification in SADC for selected South African agricultural and food products

Sentery, Kabengele (2014-04)

Thesis (MAgricAdmin)--Stellenbosch University, 2014.

Thesis

ENGLISH ABSTRACT: This research provides South Africa's producers and exporters with information on new market opportunities for South Africa's selected agricultural and food products in the Southern African Development Community (SADC). There is increasing global competition and countries in Africa are increasingly targeted as export markets due to its population growth and its increasing per capita income. Both developed countries and developing countries such as the United States of America, China, Brazil, India, etc. are gradually increasing their exports to Africa. In Sub-Saharan Africa, this is also taking place in SADC. In this region, there has been a significant increase in total imports from the mentioned countries from 2001 to 2013. The International Trade Centre market selection method was used for product selection (using the Export Potential Index) and country selection (using the Market Attractiveness Index). Fourteen products were selected and Angola is the most attractive market in the region (SADC) and is ranked first in the Market Attractiveness Index for seven of the fourteen selected products. The top ranking markets for the 14 selected products were identified as: Mauritius for maize, sweetened milk powder, raw cane sugar and wheat or meslin flour; Angola for fresh apples, fresh or dried oranges, sparkling wine, bulk wine, refined cane or beet sugar, frozen bovine cuts, and frozen bovine carcasses and half carcasses; Mozambique for bottled wine; and Zambia for fresh grapes and soya beans. In most cases the countries with the second and third highest rankings in the Market Attractiveness Index also offer opportunities for market diversification. South Africa exports certain products to non-African countries, whereas these non-African countries export the same products to SADC. There are therefore opportunities geographically nearer to South Africa, because South Africa could export these products to SADC. Exporters should not necessarily abandon non-African markets in order to export to SADC; however they should be aware of opportunities close by and develop strategies to maximize profit and maintain sustainable markets.

AFRIKAANSE OPSOMMING: Hierdie navorsing bied aan Suid-Afrika se produsente en uitvoerders inligting oor nuwe markgeleenthede vir Suid-Afrika se geselekteerde landbou-en voedselprodukte in die Suider Afrikaanse Ontwikkelingsgemeenskap (SAOG). Daar is toenemende globale mededinging en lande in Afrika word toenemend geteiken as uitvoermarkte as gevolg van bevolkingsgroei en die stygende per capita inkomste. Beide ontwikkelde en ontwikkelende lande soos die Verenigde State van Amerika, China, Brasilië, Indië, ens. verhoog geleidelik hulle uitvoere na Afrika. In Sub-Sahara Afrika, gebeur dit ook in SAOG. In hierdie streek, was daar „n betekenisvolle toename in invoere vanaf die genoemde lande van 2001 tot 2013. Die Internasionale Handelsentrum markseleksie metode is gebruik om produkte te kies (met die Uitvoer Potensiaal Indeks) en om lande te kies (met die Mark Aantreklikheidsindeks). Veertien produkte is gekies en Angola is die mees aantreklike mark in die streek (SAOG) en is bo-aan die lys in die Mark Aantreklikheidsindeks vir sewe van die veertien geselekteerde produkte. Die top markte vir die 14 geselekteerde produkte is geïdentifiseer as: Mauritius vir mielies, versoete melkpoeier, ruwe rietsuiker en mengkoringmeelblom; Angola vir vars appels, vars of gedroogde lemoene, vonkelwyn, grootmaat wyn, verwerkte riet- of beetsuiker, bevrore beessnitte, en bevrore bees karkasse en half karkasse; Mosambiek vir gebottelde wyn; en Zambië vir vars druiwe en vir sojabone. In meeste gevalle bied lande met die tweede en derde hoogste punte in die Mark Aantreklikheidsindeks ook geleenthede vir markdiversifikasie. Suid-Afrika voer sekere produkte uit na nie-Afrika lande, terwyl hierdie nie-Afrika lande weer dieselfde produkte na die SAOG uitvoer. Daar is dus geleenthede geografiese nader aan Suid-Afrika, want Suid-Afrika kan hierdie produkte na die SAOG uitvoer. Uivoerders moet nie noodwendig oorsese markte laat vaar om na die SAOG uit te voer nie, maar hulle moet bewus wees van nader geleenthede en strategieë ontwikkel om wins te maksimeer en volhoubare markte te handhaaf.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/86226
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