Department of Agricultural Economics

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Browsing Department of Agricultural Economics by Author "Angala, Aleksandera"

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    An analysis of the competitive performance of the Namibian date industry - 2001 to 2013
    (Stellenbosch : Stellenbosch University, 2015-12) Angala, Aleksandera; Van Rooyen, Johan; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics
    ENGLISH ABSTRACT: The second step in the study was to empirically measure the competitive performance of the date industry based on this trade orientation, using the relative trade advantage (RTA) method. Trade data from FAOSTAT and Trademap were used. Since 2001, the Namibian date industry has consistently recorded positive trends with RTA values ranging between 0.40 and 4.0. When compared to other international competitors, the results indicate that Tunisia is by far the most competitive country, with RTA values ranging between 278 and 391. Namibia’s date industry leads competitors such as South Africa, the USA, Kenya, Australia and India. In step 3, an industry-wide survey was conducted among executive-level industry role players, which identified 72 factors influencing competitive performance. The 72 factors were rated and analysed through chi-square and one-way analysis of variance (ANOVA) in terms of their current impact as enhancing or constraining and also in terms of their relevance to the industry. The results revealed that all factors were rated highly relevant (i.e. important) to the industry’s competitive performance levels, with 47 percent playing an enhancing role, while 43 percent were constraining competitive performance in the Namibian date industry. Differences between views on the current impact and long-term relevance of factors provided a ‘performance gap’ that the industry had to attend to strategically in order to improve competitive performance. The top three most enhancing factors are the substantial size of the international date market, the availability of unskilled labour, and the suitability of Namibian date production (project) locations. The highest rated constraining factors were identified as: the lack of privately funded scientific research capacity, the slow growth and small size of local markets, and insufficient industry expenditure on research and development (R&D). The fourth step applied Porter’s theory of competitiveness (1990; 1998) to derive the industry determinants of competitive performance. The 72 factors were grouped into the six Porter diamond determinants. Principal component analysis (PCA) was undertaken to identify variations and consensus in the views of respondents with respect to the relevance and impact of factors identified for each determinant. The results revealed that there were variations in opinions with regard to 52 factors and consensus on 20 factors, influencing the industry’s competitive performance. In analysing opinions on the impacts and long-term relevance of the identified factors, two value chain clusters were identified, viz. those opinions or respondents directly involved in the production processes of dates (cluster 1); and those providing supporting functions to the production process (cluster 2). The results indicate that although there are similarities in the opinions within the date industry value chain, important differences do exist and must be noted in strategic planning process by the industry. Differences were recorded with regard to access to quality technology, obtaining long-term credit, diversification in the international market, cost of specialised technology services, the effect of legal and political factors on the industry’s strategic position, the country’s black economic empowerment (BEE) policy and health cost implications. In step 5, the most important findings from steps 3 and 4, together with views gathered from a date industry information session (the DIS) and personal interviews, were included in a strategic decision matrix aimed to develop industry-level proposals to improve competitive performance. This matrix listed constraining factors for which a large degree of industry-level consensus was recorded, together with those actions that could improve performance immediately. Proposals highlighted were: focusing on human resources and skills development; cost-sharing activities; public-private partnerships in the development of project-level socio-economic investment packages, investing in long-term research and development (R&D); upgrading export facilities; local market development and improved collaboration with national retailers; reduction of marketing costs; export-market diversification; developing representative industry-level institutions and an industry-level strategic plan; and mobilising government-level support more effectively in order to create a conducive environment for the industry to compete successfully.