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The deregulation of agricultural markets in South Africa and New Zealand: a comparison


  • Sandrey, Ronald A.
  • Vink, Nick


Reforms of agricultural marketing structures have been a major feature of agriculture in New Zealand and South Africa over the past two decades. The reforms in New Zealand varied, and were often measured and considered, with export control either officially or de facto existing in some sectors while others were cut adrift very quickly. Not surprisingly, the results have been mixed. In South Africa all controls were effectively cut adrift, and the jury is still out on the results. A feature of the New Zealand experience has been the adoption of new technologies and even new farming sectors. Productivity showed a distinctive break at 1984, the year of the reforms; up to that date an average of 1.5 percent, past that date an average of 2.5 percent. A similar analysis of productivity in South Africa shows that increases seem to be the result of labour shedding only. The results do not bode well for South African agriculture. The sector is hamstrung by poor physical resources; hardly benefited from the Agreement on Agriculture; seems to be hampered by a lack of innovativeness; and has to contend with the transformation of the sector. Reasons for optimism include the fact that the sector as a whole has benefited from deregulation of agricultural markets, and the prospect that new entrants will bring a new sense of innovation into the industry.

Suggested Citation

  • Sandrey, Ronald A. & Vink, Nick, 2007. "The deregulation of agricultural markets in South Africa and New Zealand: a comparison," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(3), September.
  • Handle: RePEc:ags:agreko:8014

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    References listed on IDEAS

    1. Curtis, Ian A., 2004. "Valuing ecosystem goods and services: a new approach using a surrogate market and the combination of a multiple criteria analysis and a Delphi panel to assign weights to the attributes," Ecological Economics, Elsevier, vol. 50(3-4), pages 163-194, October.
    2. Fishelson, Gideon, 1994. "The water market in Israel: An example for increasing the supply," Resource and Energy Economics, Elsevier, vol. 16(4), pages 321-334, November.
    3. Alvarez-Farizo, Begona & Hanley, Nick, 2002. "Using conjoint analysis to quantify public preferences over the environmental impacts of wind farms. An example from Spain," Energy Policy, Elsevier, vol. 30(2), pages 107-116, January.
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