[Introduction] Much of the information available on the prices of vegetables marketed through the fresh produce markets is of limited use to producers. This information contains the actual prices for individual years. This can obviously be taken as a guide to future prices but it does not necessarily mean that those prices are a true reflection of the general pattern. In this study an attempt will be made, firstly, to establish whether a general pattern exists in the prices of selected vegetables on the East London municipal market. This will be attempted by studying the prices obtained over the 1964-1979 period. Information of this nature can be used as a basis for the planning of future crops. Secondly, to determine the months which obtain the "best" prices for the selected vegetables taking into account the quantities supplied to the market.

Thesis (M.Sc. ( Agricultural Economics )) --University of Limpopo, 2005 / The deregulation of agricultural markets in South Africa led to the establishment of a futures market for agricultural products, which was opened in January 1995. The marketing of Agricultural products act No. 47 of 1996 was passed at the end of 1996. The new Marketing of Agricultural Products Act (Act No. 47 of 1996) in South Africa has created an environment in which farmers, traders and processors are able to react positively to transparent prices that are market related. Agricultural futures markets serve several important functions, such as price risk management, price discovery and forward pricing. Economists around the world have studied vertical and spatial price relationships, and the behaviour of price changes in futures markets using asymmetry tests. Price asymmetry results in futures markets have a number of important implications. Firstly, traditional models in time series may be slightly biased when forecasting future prices, because they assume price symmetry. Secondly, asymmetry results may imply that the weak-form efficient markets hypothesis appears to be contradicted, thus indicating that past prices do affect current prices and do contain information. Lastly, if persistent asymmetry is found in futures markets, market regulators and policy makers may wish to use asymmetric information to improve the functioning and stability of futures markets through improved price limit and margin policies. Implementing policies iv accounting for asymmetric behaviour may help avoid market crashes and sudden unexpected price adjustments adversely affecting market participants. This study tests the existence of price asymmetry in South African futures markets for white and yellow maize, wheat and sunflower seeds using a dynamic price asymmetry model. The sum of coefficients test and the speed of adjustment test are used to determine whether or not prices move up in the same fashion as they move down, over daily and weekly data frequencies. Out of the four commodity futures markets studied over varying data frequencies, only daily wheat is price asymmetric. Wheat daily prices respond faster to price decreases than to price increases. The implication of the results is that past prices do affect current prices and contain information. Hence, the weak-form efficient market hypothesis appears to be contradicted for wheat futures market. Another important implication of the results is that implementing policies accounting for asymmetric behavior through price limit and margin policies will improve the functioning and stability of wheat futures market in South Africa. / National Research Foundation, and the University of Limpopo

Thesis (M. A. Agricultural Science (Agricultural Economics) -- University of Limpopo, 2019 / The relationship between farm and retail prices provides insights into marketing efficiency, consumer and farmer welfare. In light of this, much focus has been given to price transmission studies. Thus, price transmission studies have become increasingly important in Sub Saharan Africa because of its nature of providing clear insights information into our markets. Despite its importance in markets, there are a few studies analysing the mechanism through which prices are determined and transmitted from farm gate to retail markets in dairy markets in South Africa. The aim of the study was to investigate and analyse the nature of price transmission mechanism of pasteurised liquid milk and cheese in South Africa. The specific objectives were to determine the correlation between the milk production and quantity of milk processed in South Africa. Furthermore, there was a need to determine the direction of causality between the farm gate, processor and retail prices of cheese and pasteurised liquid milk in South Africa. It was also necessary to determine whether the price transmission of pasteurised liquid milk and cheese was symmetric or asymmetric in South Africa. The study used secondary time series data that covered a sample size of 17 years (2000 -2016) of pasteurised liquid milk and cheese in South Africa. Pearson correlation coefficient, Granger causality test and Vector Error Correction Model were used for data analysis. Pearson correlation results revealed that milk produced is perfectly correlated with the quantity of milk processed and it was positive. The Granger causality tests revealed that there was a no causal relationship between farm gate and processor, retail and processor and also between farm gate and retail for cheese. However, signs of independent causal relationship from farm gate to retail prices were visible. It also suggested a bidirectional causal relationship between processor and farm gate prices and also between retail and processor prices of pasteurised liquid milk. On the other hand, a unidirectional causality was found from retail to farm gate prices. The VECM results for pasteurised liquid milk showed asymmetric price transmission implying that retailers and processors react quicker to price increases than to price decrease. ii It is recommended that more focus be placed on investment in emerging dairy farmers in order to increase production. This can be done through the input price subsidies, grants and education on modern technologies. The government should also implement the price monitoring cell in order to protect the consumers from unfair prices passed on by the retailers. / Services SETA and National Agricultural Marketing Council (NAMC)

This thesis is an implicit farmland value study which explores the possible effects of agricultural commodity prices, interest rate and land reform issues on farmland values. The study examines the impacts of these fundamental factors (interest rates and returns to farmland as determined by crop prices) on sugar cane farmland values, maize farmland values, on deciduous fruit (apples and pears) farmland values, and on aggregate South African farmland values. Expectations are that land reform influences the demand for farmland. Since farmland prices are demand driven, changes in the demand for farmland (as influenced by land reform issues) may result in changes in farmland prices. The study thus seeks to empirically examine, to a larger extent, the long-run influence of endogenous factors on farmland prices. Causes of cyclical behaviour in farmland prices are also examined. The study draws on cross-sectional and time series studies of previous research on farmland values. The maximum likelihood Johansen (1991) procedure of cointegration is used to estimate the relationship between fundamental factors and farmland values. The logit model is used to estimate the influence of land reform on the demand for farmland, hence farmland prices. Unit root and the Johansen cointegration test results proved that long-run relationships exist between farmland values and returns to farmland; the use of cointegration methods was thus recommended. Long-run changes in farmland prices are caused by fundamental factors. Short-run variations in farmland prices are caused by exogenous factors that affect net farm income and this lead to boom-bust cycles in farmland values. / Thesis (M.Comm.) - University of KwaZulu-Natal, Pietermaritzburg, 2009.

Agriculture is of inestimable value to South Africa because it is a major source of job creation and plays a key role in earning foreign exchange. The most significant contribution of agriculture, and in particular maize, is its ability to provide food for the nation. For a number of decades government legislation determined prices, and as such the trade of grains on the futures exchange requires market participants to adapt to a volatile environment. The research focuses on the ability of market participants to effectively mitigate price volatility on the futures exchange through the use of derivative instruments, and the possibility of developing risk management strategies that will outperform the return offered by the market. The study shows that market participants are unable to use derivative instruments in such a way that price volatility is minimised. The findings of the study also indicate that the development of derivative risk management strategies could result in better returns than those offered by the market, mainly by exploiting trends on the futures market. / Financial Accounting / M. Comm. (Business Management)

Agriculture is of inestimable value to South Africa because it is a major source of job creation and plays a key role in earning foreign exchange. The most significant contribution of agriculture, and in particular maize, is its ability to provide food for the nation. For a number of decades government legislation determined prices, and as such the trade of grains on the futures exchange requires market participants to adapt to a volatile environment. The research focuses on the ability of market participants to effectively mitigate price volatility on the futures exchange through the use of derivative instruments, and the possibility of developing risk management strategies that will outperform the return offered by the market. The study shows that market participants are unable to use derivative instruments in such a way that price volatility is minimised. The findings of the study also indicate that the development of derivative risk management strategies could result in better returns than those offered by the market, mainly by exploiting trends on the futures market. / Financial Accounting / M. Comm. (Business Management)

South Africa’s land redistribution policy (1994-2008) has been widely publicised, and has come under scrutiny of late from the public, private and government spheres, highlighting a need for research in this area. The research examines progress in South Africa’s land redistribution programme in two of KwaZulu-Natal’s district municipalities, Uthungulu and iLembe. Specifically the research investigates whether the government has paid above market prices when purchasing sugarcane farmland for redistribution in these districts. Moreover, it is illustrated how productivity on redistributed farms has been affected with the changes in ownership. To investigate the research questions, reviews of theories pertaining to property rights, land reform and market structures were conducted. Moreover, two cases studies were conducted in the districts of Uthungulu and iLembe, with assistance from the Department of Land Affairs, Inkezo Land Company and the South African Cane Growers Association. The case study data indicate that above ordinary market prices have been paid (2004-2006) by the government for sugarcane farmland in the districts concerned, and further that productivity has been negatively impacted ‘during’ and ‘post‘ transfer, in the majority of cases.