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Agricultural supply response for sunflower in South Africa (1947–2016): The partial Nerlovian framework approach

Author

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  • Kenneth Nhundu
  • Colleta Gandidzanwa
  • Petronella Chaminuka
  • Manana Mamabolo
  • Sandile Mahlangu
  • Moraka N. Makhura

Abstract

The study estimates sunflower supply response in South Africa using time series data from 1947 to 2016, modelled through the Nerlovian Partial Adjustment approach. Short- and long-run price elasticities of 0.238 and 0.313 respectively, suggest that farmers do not easily adjust acreage devoted to sunflower given price changes, indicating the influence of other non-price factors. An adjustment coefficient of 0.272 indicates that the time taken to adjust from the actual to the desired acreage level is slow, at 27% per year. The estimated elasticities provide some scope for using price and non-price incentives to influence sunflower production in the long-run. This could facilitate decision-making by sunflower producers to spearhead internal and external adjustment processes. The study contributes to a growing body of literature on agricultural supply response determinants, thus providing evidence-based macro-economic tools towards agricultural policy-making and reform process.

Suggested Citation

  • Kenneth Nhundu & Colleta Gandidzanwa & Petronella Chaminuka & Manana Mamabolo & Sandile Mahlangu & Moraka N. Makhura, 2022. "Agricultural supply response for sunflower in South Africa (1947–2016): The partial Nerlovian framework approach," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 14(2), pages 440-450, February.
    • Handle: RePEc:taf:rajsxx:v:14:y:2022:i:2:p:440-450
    DOI: 10.1080/20421338.2020.1844944
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