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How Competitive Is Agribusiness In The South African Food Commodity Chain?

Author

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

Abstract

The competitiveness of sixteen selected food commodity chains in South Africa was calculated using the Revealed Comparative Advantage method of Balassa. The majority of commodity chains are marginally competitive. Except for the maize, pineapple, and apple chains, the competitiveness index generally decreases when moving from primary to processed products. This implies that benification or "value adding" opportunities in South Africa are restricted. To compete in a global economy strategies should be followed that improve the competitiveness of the whole food supply chain. It is i.e. not good enough for farmers to be able to compete globally at farm gate level, whilst the locally processed commodities that is sold to the consumer is not competitive in the world market.

Suggested Citation

  • van Rooyen, C.J. & Esterhuizen, Dirk & Doyer, Ockert T., 1999. "How Competitive Is Agribusiness In The South African Food Commodity Chain?," Working Papers 18081, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
  • Handle: RePEc:ags:upaewp:18081
    DOI: 10.22004/ag.econ.18081
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    Cited by:

    1. Gao, Cuixia & Tao, Simin & Su, Bin & Mensah, Isaac Adjei & Sun, Mei, 2023. "Exploring renewable energy trade coopetition relationships: Evidence from belt and road countries, 1996-2018," Renewable Energy, Elsevier, vol. 202(C), pages 196-209.
    2. Mashabela, T.E. & Vink, Nick, 2008. "Competitive performance of global deciduous fruit supply chains: South Africa versus Chile," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(2), pages 1-18, June.
    3. Teng Ma & Yuli Liu & Yuejing Ge, 2017. "A Comparative Study of Trade Relations and the Spatial-Temporal Evolution of Geo-Economy between China and Vietnam," Sustainability, MDPI, vol. 9(6), pages 1-15, June.
    4. Mosoma, K., 2004. "Agricultural competitiveness and supply chain integration: South Africa, Argentina and Australia," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(1), pages 1-13, March.
    5. Zhang, Jing, 2019. "Oil and gas trade between China and countries and regions along the ‘Belt and Road’: A panoramic perspective," Energy Policy, Elsevier, vol. 129(C), pages 1111-1120.
    6. Viet V. Hoang, 2019. "Investigating the evolution of agricultural trade specialization in transition economies: A case study from Vietnam," The International Trade Journal, Taylor & Francis Journals, vol. 33(4), pages 361-378, July.

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    Keywords

    Agribusiness;

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