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

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  • Ortmann, Gerald F.

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.

Suggested Citation

  • Ortmann, Gerald F., 2000. "Promoting competitiveness in South African agriculture and agribusiness: The role of institutions," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), December.
  • Handle: RePEc:ags:agreko:54203
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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).
    3. Kwamina E. Banson & Nam C. Nguyen & Ockie J. H. Bosch & Thich V. Nguyen, 2015. "A Systems Thinking Approach to Address the Complexity of Agribusiness for Sustainable Development in Africa: A Case Study in Ghana," Systems Research and Behavioral Science, Wiley Blackwell, vol. 32(6), pages 672-688, November.

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