Department of Agricultural Economics

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Browsing Department of Agricultural Economics by browse.metadata.advisor "Addison, Pia"

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    Financial cost-benefit analysis for the establishment of areas free from and areas of low pest prevalence of Bactrocera dorsalis (Hendel) in South Africa
    (Stellenbosch : Stellenbosch University, 2019-04) Van Zyl, Jo Bridget; Hoffmann, Willem H.; Addison, Pia; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY : International food trade is critical for a country’s economy and for facilitating food security across the globe, but there are risks associated with food trade. These risks include the spread of invasive pest species. Bactrocera dorsalis was introduced into Africa through food trade, after which it spread to most of sub-Saharan Africa. Bactrocera dorsalis was declared present in the Northern Vhembe district of Limpopo in 2013, and is currently present in some areas in six of the nine provinces of South Africa. Bactrocera dorsalis is considered a fruit fly of economic importance as it accounts for major economic losses such as crop damages, and also loss of export markets due to being a quarantine pest in many countries. Bactrocera dorsalis therefore needs to be managed, and current areas which are pest free, must be maintained as such. Prior to a project being embarked on, it should be determined if the project will yield positive results. A financial cost-benefit analysis is used to calculate whether it will be feasible for South Africa to establish or keep certain areas free from or under low prevalence Bactrocera dorsalis. The status quo in South Africa is used as a baseline to establish if the current situation in South Africa can be feasibly maintained, and whether the spread of Bactrocera dorsalis to the rest of South Africa can be prevented. The financial cost-benefit analysis takes all costs and benefits related to the project in question, into account. A financial cost-benefit analysis has been conducted, and input from stakeholders was used to determine the different categories included in the analysis. The outcome, given the assumptions of the financial cost-benefit analysis, is positive. The net present value (NPV) and the cost-benefit ratio, provided as an outcome of the financial cost-benefit analysis, were used to interpret and determine the feasibility of the project. Both the net present value and cost-benefit ratio results are positive. The positive net present value and cost benefit ratio indicate that it will be feasible to maintain the current situation concerning Bactrocera dorsalis in South Africa. This project serves to indicate factors which should be included when a more comprehensive analysis is needed.