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Promoting competitiveness in South African agriculture and agribusiness: The role of institutions

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  • Ortmann, Gerald F.
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    Abstract

    This paper considers private and public institutions that will help promote the competitiveness of commercial farms and agribusiness firms, and enhance the productivity of communal farmers and the competitiveness of emerging farmers in South Africa. Commercial agriculture and agribusiness are creating institutions (such as food safety standards and strategic partnerships), adopting existing private and public institutions (e.g. TQM, ISO 9000 and HACCP) or restructuring to add value to products and services, reduce costs and gain access to export markets. Government should focus its relatively scarce resources on providing physical and legal infrastructure (such as secure property rights and contract enforcement) to reduce transaction costs, including risk, so that markets work efficiently. A major challenge for local agricultural economists is to provide information about institutions that will promote the productive use of land in communal areas, and the competitiveness of emerging farmers on redistributed commercial farmland.

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    Bibliographic Info

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

    Volume (Year): 39 (2000)
    Issue (Month): 4 (December)
    Pages:

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    Handle: RePEc:ags:agreko:54203

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    Web page: http://www.aeasa.org.za/
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    Related research

    Keywords: Agribusiness; International Relations/Trade;

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    10. Louise Fenwick & Mike Lyne, 1999. "The relative importance of liquidity and other constraints inhibiting the growth of small-scale farming in KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 16(1), pages 141-155.
    11. van der Merwe, A. & Otto, Rolf-Joachim, 1997. "International marketing developments and the effects on South African agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), December.
    12. Beghin, John C. & Fafchamps, M., 1995. "Constitution, Institutions, and the Political Economy of Farm Policies. What Empirical Content?," Staff General Research Papers 1620, Iowa State University, Department of Economics.
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    15. Whipple, Judith M. & Frankel, Robert, 1999. "Strategic Alliances: Creating Long Term Success," Staff Papers 11611, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:
    1. Darroch, Mark A.G., 2010. "South African Farmers’ Perceptions of the Benefits and Costs of Complying with EUREPGAP to Export Fresh Citrus to the European Union (EU)," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96437, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
    2. Doyer, Ockert T. & D'Haese, Marijke F.C. & Kirsten, Johann F. & van Rooyen, C.J., 2007. "Strategic focus areas and emerging trade arrangements in the South African agricultural industry since the demise of the marketing boards," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(4), December.

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