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Agricultural competitiveness and supply chain integration: South Africa, Argentina and Australia

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  • Mosoma, K.
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    Abstract

    The international competitiveness of South African agricultural exports relative to those of Argentina and Australia is considered. Competitiveness was measured in terms of the Relative Comparative Advantage (RTA) using data from FAOSTAT 2002, while trade perspectives were examined using data from the World Trade Organisation and the Trade and Industrial Policy Strategies (TIPS) databases. The results of the RTA show that South Africa's agricultural food chains are marginally competitive internationally, whereas Argentina and Australia's agricultural food chains are internationally competitive. The analysis also shows that South Africa has managed to move up the value chain relative to Argentina and Australia. Nevertheless, competitiveness decreases in all three countries when moving from primary to processed products in the chains, which implies that value-adding opportunities are limited. Based on their competitive status, there is a potential in certain agro-food chains for supply chain integration and co-operation. Strategic alliances are important instruments for competitiveness. They create flexibility in operations, enhance technology transfer and networking and exploit possible complementary and supplementary relations between industries and organisations.

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    Bibliographic Info

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

    Volume (Year): 43 (2004)
    Issue (Month): 1 (March)
    Pages:

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    Handle: RePEc:ags:agreko:9471

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    Web page: http://www.aeasa.org.za/
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    Keywords: Agribusiness;

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    1. Johan van Zyl & Nick Vink & Johann Kirsten & Daneswan Poonyth, 2001. "South African agriculture in transition: the 1990s," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 725-739.
    2. van Rooyen, C.J. & Esterhuizen, Dirk & Doyer, Ockert T., 1999. "How Competitive Is Agribusiness In The South African Food Commodity Chain?," Working Papers 18081, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    3. 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.
    4. Imre Fert– & L. J. Hubbard, 2003. "Revealed Comparative Advantage and Competitiveness in Hungarian Agri-Food Sectors," The World Economy, Wiley Blackwell, vol. 26(2), pages 247-259, 02.
    5. Frohberg, Klaus & Hartmann, Monika, 1997. "Comparing measures of competitiveness," IAMO Discussion Papers 2, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
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