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Investigating alternative governance systems for the South African mohair supply chain

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Author Info
Jordaan, D.
Kirsten, J.
Abstract

Mohair is an exclusive natural animal fibre with niche market appeal. It is, however, questionable whether it is inherently suited to a commodity-based marketing system in a marketing environment that requires marketing systems to convey far more information than commodity-based systems do. Historically, mohair has been considered a commodity and the marketing system for mohair has been structured accordingly. It is, however, argued that, the exchange between mohair growers and the buyers of greasy mohair requires increased levels of coordination to govern the exchange in a transaction costs efficient manner. The inefficiencies created by an inappropriate or incomplete marketing system for South African mohair are expected to lead to a loss of consumer value and a loss of potential profit throughout the mohair supply chain if a more coordinated governance structure is not implemented to curb these costs and augment the current spot market exchange.

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File URL: http://purl.umn.edu/37633
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Publisher 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:37633

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Related research
Keywords: Mohair; marketing; governance structure; supply chain;

References listed on IDEAS
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  1. Martinez, Steve W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economics Reports 34051, United States Department of Agriculture, Economic Research Service. [Downloadable!]
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This page was last updated on 2009-12-26.


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