Department of Agricultural Economics

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Browsing Department of Agricultural Economics by Subject "Agricultural Economics"

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    Die rol van waardetoevoeging in die produksie, verwerking en verspreiding van rooivleis in die Langeberg
    (Stellenbosch : Stellenbosch University, 2012-03) Cloete, Johanna Cecilia; Vink, N.; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: This study investigates, primarily, value adding in the red meat value chain, and secondary, the scope of red meat consumption in the Langeberg on a formal level. The value chain is proposed as a value system, since the latter dispose of feedback capacity. This ability of a system means that the elements identified can change and influence each other, unlike a value chain, where information is traditionally sent linearly. Vanaf a systems approach, the production, processing and distribution of red meat are investigated by means of a qualitative and quantitative analysis of data. Critical points of change are identified to improve resource use within the value chain in order to decrease the price of meat. Changes in the red meat industry over the past 80 years had a distinct influence on the current structure of the red meat value chain. It is therefore necessary to understand the history in order to predict the future. Vanaf this viewpoint the Red Meat Scheme is discussed, as well as the typical structure of the value chain, which serves as a benchmark for the analysis to follow. Red meat refers to beef, sheep/lamb and pork. The analysis of data is done using Interactive Qualitative Analysis© and descriptive statistics. Open and close ended questions are included in questionnaires for the interviews. Respondents included are role players in the Langeberg red meat industry which are situated in the area as well as those who are directly involved, but not situated in the area. Role players in the Langeberg include producers, feedlots, agents, abattoirs, supermarkets and butcheries, while wholesalers vanaf outside who are involved in the area, are also contacted. Some interesting finding vanaf the quantitative analysis include 1) supermarkets and butcheries in the Langeberg differ, on average, only 29c/kg on a selection of meat cuts, 2) labour is the single largest expense for the majority of respondents, and 3) the per capita consumption of red meat in the area is considerably lower that the national norm: 15.78kg versus 25.39kg. If is apparent that the role of the informal market cannot be ignored and questions arise about the validity of the national norm. After analysing around 700 data cards the Red Meat Value System of the Langeberg were constructed. The most important characteristics of the system are that government regulations and supermarket standards seems to be the largest driver of change within the system, while price is the biggest receiver of influence (and therefore the largest “variable”). Recommendation that are supported by the analysis: Increase in genetic material of weaned animals leads to better quality meat; Direct supply by abattoirs to retailers increase both parties‟ ability to add value; Vertical integration in the value chain can increase the viability of enterprises; Availability of meat of different grading on retail level can increase the quality of carcasses within a given grading level; The regressive nature of VAT can decrease with the abolition of VAT on lower graded carcasses, while total abolition will benefit both the industry and consumers.
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    Scenario development to support strategic planning in the south african table grape industry
    (Stellenbosch : University of Stellenbosch, 2010-03) Ntombela, Sifiso Mboneni; Kleynhans, Theo; University of Stellenbosch. Faculty of Agrisciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: The South African table grape industry has evolved significantly in the last two decades. Ever improving supply chain technologies, post-harvest technology innovation, and more efficient production inputs have all stimulated the production of table grapes in all five South African production regions. While the industry in general is well developed, from the late 1990s the competitiveness status of the South African table grape industry has been negative as far as international competitiveness is rated. Prior to this, from 1961 to 1998, the industry had recorded positive trends in competitiveness. The recent decline, from as early as the 2000s, in the competitiveness of the industry can be attributed to rising competition from alternate Southern Hemisphere suppliers, increasing production costs and export costs, as well as inadequate market diversification. As a result of its negative competitiveness status, the table grape industry wants to diversify its export markets in order to improve and protect the industry‟s position in the global table grape markets. The objective of this study is to investigate the viability of specific export market diversification scenarios. The aim is to evaluate the potential impact on the table grape industry if export volumes were to be relocated from traditional to emerging markets, and the potential risk if the industry were to maintain the current market distribution. The study developed a deterministic farm-level model based on accounting principles as a tool for simulating and analysing the impact of changes in markets on the financial viability of farms under different scenarios. A scenario development process is adopted in this study as it offers the possibility of integrating various kinds of data in a consistent manner, and it can represent the views and expectations of several stakeholders simultaneously. Three scenarios were developed: (i) Scenario 1 presents the continuation of current market distributions (i.e. 85% of South African exports are marketed in Europe and another 15% are distributed to other global markets); (ii) Scenario 2A depicts a situation where export volumes are slowly redistributed to emerging markets; and (iii) Scenario 2B presents a situation where export volumes are rapidly redistributed to emerging markets. The targets for both Scenarios 2A and 2B are to market 60% of South African exports to Europe and 40% to other global markets. Scenarios 2A and 2B are driven by similar factors, including improving industry information, globalisation, increasing competition, and table grape prices An analysis of factors shaping the table grape export sector shows that the industry can no longer afford to send large export quantities predominantly to its traditional markets, due to increasing competition and diminishing market prices. Furthermore, the analysis shows that continuing with the current market diversification will have a negative impact on the industry, as farm returns, employment and farm units will decline under this scenario. The results suggest that the industry would be better off if export volumes were redistributed away from Europe to other markets.