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Fynbos Exports From The Western Cape Province: A Problem Of Logistics

Author

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  • Allerts, S.
  • Kleynhans, Theo E.
  • Vink, Nick

Abstract

During 1997 research was conducted on trends in factors that affect the supply and demand for airfreight space for fynbos exports from South Africa. The aim was to sensitise decision-makers to probable trends in those factors that will shape cargo space availability. The main finding was that the supply of airfreight to South African producers is aggravated by the unbalanced availability of cargo space on southbound and northbound trips originating from Cape Town. If the price and quantity of cargo space were determined by supply and demand, an imbalance couldn’t arise in a perfect market, as prices would balance cargo space supplied and demanded. However, airfreight tariffs are rigid per weight level. The result is that items with a higher mass per volume unit represent a higher income per palette, and are therefore preferred by export agents. This finding has implications for future growth in the industry.

Suggested Citation

  • Allerts, S. & Kleynhans, Theo E. & Vink, Nick, 1998. "Fynbos Exports From The Western Cape Province: A Problem Of Logistics," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(4), pages 1-9, December.
    • Handle: RePEc:ags:agreko:54901
    DOI: 10.22004/ag.econ.54901
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    Cited by:

    1. Adriaen, D. & Kleynhans, Theo E. & Tollens, Eric, 2004. "A comparison between South African agricultural exports to the European union and those of other selected southern hemisphere countries," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(2), pages 1-18, June.
    2. van Haaster, F. & Kleynhans, T.E., 2002. "Decision Tree Modelling To Support Investment Decisions On Flower Production For The Northern Hemisphere," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 41(1).
    3. van Rooyen, I.M. & Kirsten, Johann F. & van Rooyen, C.J. & Collins, Ray, 2001. "THE COMPETITIVENESS OF THE SOUTH AFRICAN AND AUSTRALIAN FLOWER INDUSTRIES: An application of three methodologies," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125999, Australian Agricultural and Resource Economics Society.

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    Keywords

    International Relations/Trade;

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