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Competitive performance of global deciduous fruit supply chains: South Africa versus Chile

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  • Mashabela, T.E.
  • Vink, Nick

Abstract

The South African deciduous fruit industry has experienced difficulties in the past few years. Most deciduous fruit producers have suffered from increased globalisation of markets; trade liberalisation; deregulation of the industry; advances in information technology; changes in consumer preference; over-supply of deciduous fruit in South Africa’s traditional markets and increased global competition, particularly from Chile. These factors have a continuous effect on the competitiveness of the industry and force deciduous fruit producers to position themselves as capable competitors in the global free-market environment. This paper measures the competitive performance of the South African deciduous fruit supply chains relative to those of Chile. An internationally recognised index, the Relative Revealed Comparative Trade Advantage (RTA) index and also data from both Food and Agricultural Organisation (FAO, 2007) and World Trade Organisation (WTO, 2007) are used to measure the competitive performance. The results reveal that South Africa’s deciduous fruit supply chains are shown to be competitive internationally, whereas Chile’s deciduous fruit supply chains are strongly internationally competitive. In most cases, South African fruit products to which value has been added have a competitive disadvantage, contrary to the case in Chile. South African deciduous fruit competitive performance decreases when moving from primary to processed products in the chains, an indication that value-adding opportunities are still limited

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File URL: http://purl.umn.edu/37632
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Bibliographic Info

Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

Volume (Year): 47 (2008)
Issue (Month): 2 (June)
Pages:

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Handle: RePEc:ags:agreko:37632

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Web page: http://www.aeasa.org.za/
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Keywords: Deciduous fruit; competitiveness; supply chains;

References

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  1. Nick Vink, 2004. "The influence of policy on the roles of agriculture in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 21(1), pages 155-177.
  2. Hallat, Jani, 2005. "Relative Competitiveness Of The South African Oilseed Industry," Master's Degree Theses 28063, University of the Free State, Department of Agricultural Economics.
  3. Nicole Valentine & Gena Krasnik, 2000. "SADC Trade with the Rest of the World: Winning Export Sectors and Revealed Comparative Advantage Ratios," South African Journal of Economics, Economic Society of South Africa, vol. 68(2), pages 114-124, 06.
  4. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June.
  5. Kirsten, Johann F. & Ohene-Anyang, E. & van Rooyen, Johan, 1998. "An Analysis Of The Comparative Advantage And Policy Incentives Of Commercial Wheat Production In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(4), December.
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