Browsing by Author "Sanganza, Hardlife"

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    A competitive advantage analysis of South African vegetable sector : tomatoes, carrots and onions
    (Stellenbosch : Stellenbosch University, 2021-03) Sanganza, Hardlife; Ndibongo-Traub, Lulama Nosantso; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY : The purpose of this study is to measure and analyze the competitive performance of South African vegetable sector; specifically, tomatoes, carrots and onions, in the African market, with emphasis on the recent years (2001 - 2018). A comprehensive approach is applied using an analytical framework that analyses the sector both quantitatively and qualitatively in order to highlight factors that enhance and constraint the sectors’ competitive advantage. Quantitatively, the study measured the competitive advantage of the South African vegetable sector using three indexes: relative trade advantage (RTA), relative comparative advantage (RCA), and net export index (NXi). The results show that South African vegetables (collectively) did not have a comparative advantage, neither are they competitive in the African market, however NXi values are quite high, showing that the vegetable sector is a net exporter. Individually, carrots and onions are found to be comparative and competitive in the African market, whereas tomatoes are neither comparative nor competitive. All three vegetables have high NXi values reflecting that the individual vegetables are net exporters. Main competitors in the African market for these three vegetables included Egypt, Morocco, Belgium and Netherlands. Qualitatively, a Vegetable Executive Survey (VES) of sector role players was conducted using a two rounds Delphi technique in order to identify factors that are enhancing and constraining the vegetable sector. A total of 48 factors are identified and they are rated on a five-point Likert - scale, with 5 being the most enhancing and 1 being the most constraining. Among other factors these are the most constraining factors, input cost, credibility of political system, land reform policy, social unrest and crime. Enhancing factors of South African vegetable sector includes expenditure on research and development, size of local and international market, consumer information of vegetables and economies of scale. The rated factors are grouped/clustered into the six determinants of Porter’s diamond model. The results showed that demand conditions, firm strategy, structure and rivalry, and related and supporting industries factors are the vegetables sector’s enhancing determinants. Government support and policy, factor conditions and chance factors are South African vegetable sector’s constraining determinants.