Profit efficiency of small- and medium-scale maize milling enterprises in South Africa
AbstractDespite the reported large margins between producer prices for maize and retail prices for maize meal and the fact that maize meal is a staple food for most of the South African population, there have been only limited investments in small- and medium-scale maize milling in South Africa since the deregulation of the maize markets. The apparent failure of small- and medium-scale maize millers to emerge and compete effectively in the maize milling industry in South Africa raises questions about their scale and level of efficiency. Against this background, this paper analyses the profit efficiency of these enterprises, using a translog stochastic profit frontier model. Findings from the profit efficiency analysis show an average profit efficiency score of 80.6 per cent for the small-scale mills and 87.4 per cent for the medium-scale mills. There is therefore a significant unexplored potential in these categories of mills.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Development Southern Africa.
Volume (Year): 26 (2009)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CDSA20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Temesgen Tadesse Deressa, 2011. "Effects of climatic conditions and agro-ecological settings on the productive efficiencies of small-holder farmers in Ethopia," Working Papers 223, Economic Research Southern Africa.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.