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Structural change in agribusiness: The case of Potgietersrusse Tabak Kooperasie (PTK)

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  • Doyer, Ockert T.
  • van Rooyen, C.J.

Abstract

In response to the structural changes in the South African agricultural sector, Potgieterusse Tabakkooperasie (PTK) extended its operations to include marketing activities. This article introduces the theme of structural change/industrialisation in the South African agricultural sector and explores the complexity of structural options and decision-making variables that managers have to face when considering vertical expansion. A case study approach is followed at the hand of new institutional economics to explain strategic choices by PTK management. The results from organisational theory and transaction cost theory, as applied to the same problem, yields complimentary and robust results.

Suggested Citation

  • Doyer, Ockert T. & van Rooyen, C.J., 2000. "Structural change in agribusiness: The case of Potgietersrusse Tabak Kooperasie (PTK)," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), December.
  • Handle: RePEc:ags:agreko:54218
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    References listed on IDEAS

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    1. Antonovitz, Frances & Buhr, Brian L. & Liu, Donald J., 1996. "Vertical Integration Incentives In Meat Product Markets," Staff Papers 13989, University of Minnesota, Department of Applied Economics.
    2. Sterns, James A. & Schweikhardt, David B. & Peterson, H. Christopher, 1998. "Using Case Studies As An Approach For Conducting Agribusiness Research," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 1(03).
    3. Ward, Clement E., 1997. "Vertical Integration Comparison: Beef, Pork, and Poultry," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35759, Western Agricultural Economics Association.
    4. Johann Kirsten & Julian May & Sheryl Hendriks & Charles L. Machethe & Cecelia Punt & Mike Lyne, 2007. "South Africa," Chapters,in: Beyond Food Production, chapter 8 Edward Elgar Publishing.
      • Nick Vink & Gavin Williams & Johann Kirsten, 2004. "South Africa," Chapters,in: The World's Wine Markets, chapter 12 Edward Elgar Publishing.
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    Keywords

    Farm Management;

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