IDEAS home Printed from https://ideas.repec.org/p/ags/ifma09/345520.html
   My bibliography  Save this paper

PR - Factors Influencing The Long-term Competitiveness Of Commercial Milk Producers In South Africa

Author

Listed:
  • du Toit, Justin P.
  • Ortmann, Gerald F.
  • Ramroop, Shaun

Abstract

This study investigates factors influencing the long-term competitiveness, based on a unit cost ratio analysis, of 11 commercial milk producers from East Griqualand (EG), South Africa, using unbalanced panel data for the period 1990 – 2006. Results of a Ridge regression analysis show that dairy herd size, the level of farm debt, production per cow, technological and policy changes over time, and the proportion of trading income to total milk income influence the long-term competitiveness of these milk producers. To enhance their competitiveness in a deregulated agricultural market, relatively small and profitable EG milk producers should consider increasing herd sizes as the importance of herd size in explaining competitiveness suggests that size economies exist. All EG milk producers should also consider utilising more pasture and other forages to lower production costs and select dairy cattle of superior genetic merit to improve milk yields.

Suggested Citation

  • du Toit, Justin P. & Ortmann, Gerald F. & Ramroop, Shaun, 2009. "PR - Factors Influencing The Long-term Competitiveness Of Commercial Milk Producers In South Africa," 17th Congress, Illinois State University, USA, July 19-24, 2009 345520, International Farm Management Association.
    • Handle: RePEc:ags:ifma09:345520
    DOI: 10.22004/ag.econ.345520
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345520/files/09_duToit_etal.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.345520?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(2), pages 1-15, October.
    2. Esterhuizen, Dirk & van Rooyen, C.J., 2006. "An inquiry into factors impacting on the competitiveness of the South African wine industry," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(4), pages 1-19, December.
    3. Hisham S. El-Osta & Mitchell J. Morehart, 2000. "Technology Adoption and Its Impact on Production Performance of Dairy Operations," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(2), pages 477-498.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. du Toit, J.P. & Ortmann, Gerald F. & Ramroop, S., 2010. "Factors influencing the long-term competitiveness of commercial milk producers: evidence from panel data in East Griqualand, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(01), pages 1-22, March.
    2. Lai, John & Olynk Widmar, Nicole J. & Gunderson, Michael A. & Widmar, David A. & Ortega, David L., 2018. "Prioritization of farm success factors by commercial farm managers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    3. Anjani Kumar & Ashok K. Mishra & Sunil Saroj & Vinay K. Sonkar & Ganesh Thapa & Pramod K. Joshi, 2020. "Food safety measures and food security of smallholder dairy farmers: Empirical evidence from Bihar, India," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 363-384, June.
    4. Dressler, Jonathan B. & Tauer, Loren W., 2011. "Revealing an Equitable Income Allocation among Dairy Farm Partnerships," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 102116, Agricultural and Applied Economics Association.
    5. Łukasz Kryszak & Marta Guth & Bazyli Czyżewski, 2021. "Determinants of farm profitability in the EU regions. Does farm size matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 90-100.
    6. Babu, Suresh Chandra & Shishodia, Mahika, 2017. "Agribusiness competitiveness: Applying analytics, typology, and measurements to Africa," IFPRI discussion papers 1648, International Food Policy Research Institute (IFPRI).
    7. Melih Erdem & Hasan Burak Ağır, 2024. "Enhancing Dairy Farm Welfare: A Holistic Examination of Technology Adoption and Economic Performance in Kahramanmaraş Province, Turkey," Sustainability, MDPI, vol. 16(7), pages 1-22, April.
    8. repec:osf:osfxxx:p8zk9_v1 is not listed on IDEAS
    9. Yeager, Elizabeth & Langemeier, Michael, 2009. "Measuring Sustained Competitive Advantage for a Sample of Kansas Farms," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2009, pages 1-12.
    10. Rodica Chetroiu & Ana Elena Cișmileanu & Elena Cofas & Ionut Laurentiu Petre & Steliana Rodino & Vili Dragomir & Ancuța Marin & Petruța Antoneta Turek-Rahoveanu, 2022. "Assessment of the Relations for Determining the Profitability of Dairy Farms, A Premise of Their Economic Sustainability," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    11. Wheeler, Sarah Ann & Zuo, Alec & Bjornlund, Henning, 2014. "Investigating the delayed on-farm consequences of selling water entitlements in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 145(C), pages 72-82.
    12. Philippe Jeanneaux & Eliot Wendling & Yann Desjeux & Geoffroy Enjolras & Laure Latruffe, 2025. "Structure and determinants of the cost of setting up a farm: The case of young farmers in Central France," Post-Print hal-04969713, HAL.
    13. Vanzetti, David & Nikolic, Aleksandra, 2011. "Potential Impacts of WTO Accession on the Agribusiness Sector in Bosnia and Herzegovina," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114611, European Association of Agricultural Economists.
    14. Cervera Ferrer, Francesc J. & Compés López, Raúl, 2018. "The performance of Spanish wine exports in international markets," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01), June.
    15. Rees, Lisa & Parcell, Joseph L. & Patterson, David J. & Smith, Michael F. & Poock, Scott, 2010. "Beef Reproductive Technology Adoption- Impact of Production Risk and Capitals," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56492, Southern Agricultural Economics Association.
    16. Khanal, Aditya R. & Gillespie, Jeffrey M., 2011. "Adoption and Profitability of Breeding Technologies on United States Dairy Farms," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98574, Southern Agricultural Economics Association.
    17. Thana Sarttra & Tossapol Kiatcharoenpol, 2025. "Enhancing Sustainable Herd Structure Management in Thai Dairy Cooperatives Through Dynamic Programming Optimization," Sustainability, MDPI, vol. 17(9), pages 1-23, April.
    18. Camilo Olaya, 2015. "Cows, agency, and the significance of operational thinking," System Dynamics Review, System Dynamics Society, vol. 31(4), pages 183-219, October.
    19. Kuster, Christian & Álvarez, Jorge & Lezcano, Mikaela & Álvarez-Vaz, Ramón Dr., 2022. "Desempeño Económico De Las Empresas Agropecuarias Uruguayas: Estudio Sobre Su Evolución A Través De La Técnica De Clústers Longitudinales A Partir De Datos Contables (Economic Performance Of Uruguayan," OSF Preprints p8zk9, Center for Open Science.
    20. McDonald, Roberta & Pierce, Karina & Fealy, Reamonn & Horan, Brendan, 2013. "PR - Characteristics, Intentions And Expectations Of New Entrant Dairy Farmers Entering The Irish Dairy Industry Through The New Entrant Scheme," 19th Congress, Warsaw, Poland, 2013 345713, International Farm Management Association.
    21. Micheels, Eric T. & Gow, Hamish R., 2011. "Market orientation and firm performance across value disciplines in the Illinois beef sector," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 1(2), pages 1-11.

    More about this item

    Keywords

    Industrial Organization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifma09:345520. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.