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Structure, Conduct and Performance in the South African Potato Processing Industry

Author

Listed:
  • Hanekom, J.W.
  • Willemse, B.J.
  • Strydom, D.B.

Abstract

The South African Potato industry was deregulated in the early 1990’s, leading to changes in market structure. The adjustment in market structure leads to changes in production and marketing practices, including contracting and pricing strategies for processing firms within the industry. The purpose of this paper is to investigate the current status in the potato processing industry, based on market structure, conduct and performance. The objective is to qualitatively measure the driving forces within the industry, and how these factors influence performance of the industry as a whole. The research method was based on the structure-conduct-performance paradigm, giving a better understanding of the potato processing industry and the driving forces, relating to future growth. A short case study of the Australian potato processing industry, which finds itself in a similar position as South Africa, reveals that increasing global competition in the form of low cost importers, are hampering competitiveness and profitability, along with rising production costs. It was found that the South African potato processing industry has a relatively high concentration, which means efficiency is lacking as market shares is not distributed effectively. It was further evident that a lack of trust between processors and producers is a source of concern for processors.

Suggested Citation

  • Hanekom, J.W. & Willemse, B.J. & Strydom, D.B., 2010. "Structure, Conduct and Performance in the South African Potato Processing Industry," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96643, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae10:96643
    DOI: 10.22004/ag.econ.96643
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    References listed on IDEAS

    as
    1. Kari, Fatimah & Jaafar, Abdul H. & Allen, Albert J. & Couvillion, Warren C., 2002. "Market Structure, Market Share, And Profits In The Surface Freight Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19757, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Keywords

    Crop Production/Industries;

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