Browsing by Author "Wandile, Sihlobo"

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    An evaluation of competitiveness of South African maize exports
    (Stellenbosch : Stellenbosch University, 2016-03) Wandile, Sihlobo; Ndibongo-Traub, Lulama; Stellenbosch University. Faculty of Agrisciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: South Africa’s maize exports are generally irregular and inconsistent. This lack of consistency is attributed primarily to uneven surplus levels which, in certain years, preclude South Africa’s regular participation in larger import markets. We therefore applied a revealed comparative advantage index, agri benchmark production model, growth-share matrix, indicative trade potential index, relative indicative trade potential index and market attractiveness index to assess the competitiveness of South African maize exports, and the scope to expand the market share in existing markets and to identify unexploited and attractive markets. We found that South Africa’s maize exports are competitive relative to leading global exporters. However, the production costs analysis showed that South Africa is less competitive relative to Argentina, Brazil, the USA and the Ukraine. High-potential and attractive markets were identified as Japan, Mexico, Taiwan, the United Arab Emirates, Thailand and Zimbabwe. These are markets that South Africa should prioritise to develop in the short to medium term. Moreover, the Market Attractiveness Index showed that Indonesia, Nigeria, Malaysia, Saudi Arabia, Mauritius, the United Arab Emirates, Taiwan, Iran, the Democratic Republic of Congo and Yemen are the top ten attractive markets for South African maize exports. In terms of market access, South Africa faces relatively similar tariff levels in global markets compared to its competitors. However, with regard to non-tariff barriers, South Africa faces restrictions in markets such as Thailand, Saudi Arabia and within the EU countries, since South Africa’s maize production is approximately 85% genetically modified. Recommendations for developing South African maize exports would be to closely view the top 25 attractive markets presented on the Market Attractiveness Index and strategically position the industry to access these markets. There also is a need to design an industry export strategy that will prioritise these markets in line with business interests and to explore the existing potential. The current South African maize exports are concentrated and there is scope to access new markets.