Department of Agricultural Economics

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Browsing Department of Agricultural Economics by Subject "Agricultural ecology"

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    Assesing measures for agroecological competitive advantage
    (Stellenbosch : Stellenbosch University, 2023-12) Naicker, Keenan Nathaniel; De Lange, Willem; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY: The evaluation of agroecological farming practices is a subject of current interest in the field of sustainable agriculture. While agroecology has gained attention as a potential solution for sustainable food systems, assessing its economic performance relies on measuring its competitive advantage. Traditional metrics, including Total Factor Productivity (TFP), Private Cost Ratio (PCR), Profit Margin (PM), and Return on Assets (ROA), are commonly used to evaluate competitive advantage in various sectors, but their applicability to agroecological farming remains unclear. This master's thesis explores the applicability of traditional competitive advantage measures when applied to agroecology principles within the agricultural sector. The study applies the Analytical Hierarchy Process (AHP) to two Delphi panels to assess agroecological principles' priority and competitive advantage measures' alignment. Results indicate soil health as the most crucial agroecological principle, closely followed by fairness and biodiversity. Total Factor Productivity (TFP) emerges as the preferred measure of agroecological competitive advantage, followed by Profit Margin (PM) and Production Cost Ratio (PCR). While TFP is favoured, it presents limitations such as data requirements and the inability to capture certain externalities. The study underscores the need for new measures aligned with agroecology's holistic nature and acknowledges limitations, including the inclusive and context-specific nature of agroecology. This master's thesis contributes to the discourse on agroecological competitive advantage, emphasizing the importance of reevaluating traditional measures within the context of agroecology. It underscores the potential for sustainable agricultural practices to reshape competitive strategies, ultimately fostering a more resilient and equitable food system.