This study aims to develop a robust methodology for measuring the performance of equity-share schemes in South African agriculture. Equity-share schemes are privately owned farming operations that are generally restructured as companies with the original owner and the farmworkers as shareholders. Several studies have investigated various aspects of the performance of these schemes but no single study has yet measured their performance using a comprehensive and objective set of criteria. Four categories of criteria are proposed: poverty alleviation; empowerment and participation; institutional arrangements and governance; and financial performance. This study does not aim to assess the performance of existing equity-share schemes rather a methodology for the four criteria based on empirical evidence gathered in 2004 from a land reform project in the Midlands of KwaZulu-Natal and seven established equity-share schemes in the Western Cape. Poverty alleviation is measured using a transition matrix of households grouped by four different symptoms of poverty: current income, wealth, health and a principal component index of housing quality based on building materials, access to safe drinking water and adequate sanitation. Eight. categories of indicators are recommended for empowerment and participation: control and ownership; skills transfer; understanding of the structure of the scheme; information; outcomes; trust; outreach; and participation. A scorecard applying norms based on empirical evidence gathered at equity-share schemes in the Western Cape is used to assess the indicators. A scorecard approach is also applied to institutional arrangements and governance, which are measured using three categories of indicators: accountability, transparency and property rights. Recognised indicators ;of financial performance are applied to balance sheet and income statement data provided by four of the seven equity-share schemes in the Western Cape. This analysis highlights problems with several of the conventional ratios used to measure the profitability, solvency and growth of recently restructured farming enterprises whose 'empowerment' status attracts exceptionally high levels of debt capital to finance long-term investments. To avoid these problems it is recommended that, for equity-share schemes, profitability should be measured by the return on assets or dividend return; solvency by the debt/asset ratio; liquidity by cash flow projections; growth by changes in the (estimated) real. value of shares; and workers' total returns by changes in the sum of the real wage bill, capital gains, dividends, interest and other benefits accruing to workers in aggregate. The proposed performance measures are relevant, manageable in number and have feasible norms based on empirical evidence. These indicators and their norms need to be tested on a wider scale and over time. Further research should be undertaken to estimate weights for the empowerment and institutional indicators. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

This study focuses on commercial mushroom production, a relatively new economic activity in Swaziland that seeks to assist rural-based small-scale farmers to diversify and improve their economic independence and livelihoods. The mushroom programme is in line with the National Development Strategy, which, among its major objectives, aims to address povertyrelated challenges through the promotion of non-conventional high-value agricultural commodities that have not been explored by local farmers despite having a relatively high consumer demand in local and international markets. In attempting to provide an impetus to the mushroom industry, the Swaziland government currently offers free training in mushroom production, extension services, high quality spawn at a very nominal fee, and free substrate bags. Considering the geographical suitability and the magnitude of investment made towards the mushroom development programme, there is a need to understand why many farmers are not participating in the industry, and why Swaziland still imports more than 95 percent of locally consumed cultivated mushrooms. There has also been no research so far on the challenges and opportunities in producing, value adding, and marketing of mushrooms in Swaziland. This study was, therefore, an attempt to address these knowledge gaps. It also provided an opportunity to draw relevant policy and management implications to inform future strategies in the industry. The specific objectives of the study were to: (i) identify and examine the factors that influence households’ decisions to participate in mushroom production; (ii) study the underlying mushroom production and market access constraints; (iii) examine the effects of transaction cost factors that influence mushroom producers’ market channel choice decisions and the quantity of mushrooms sold in selected channels; and (iv) study the effects of organisational form on producers’ participation in collective responsibilities. Using cross-sectional data gathered from mushroom producers and non-producers, the results of the Two-Stage Conditional Maximum Likelihood and Two-Stage Probit Least Squares estimation methods revealed that farmers’ decisions to participate in the mushroom enterprise are mainly influenced by institutional factors. Farmers who have undergone training in basic oyster mushroom production, are located in close proximity to input and output markets, and have positive perceptions towards mushrooms, are likely to participate in the mushroom industry. The development of positive perceptions towards mushrooms is predominantly influenced by the knowledge gained on their nutritional and therapeutical properties. The value chain approach was used to identify the underlying factors constraining mushroom production and producers’ participation in mainstream markets. Among the important findings, the study showed that producers’ plans to expand production capacities are hampered by the difficulty to access key inputs and services, which are centralised and fully controlled by the government. Generally, local farmers produce below capacity in relatively small low-cost structures, which are also not well equipped. As a result, farmers apply very primitive management methods that eventually affect their productivity. These constraints are partly responsible for the extremely low locally produced volumes and inconsistent market supply, prompting local mushroom traders to rely on imports. Other constraints relate to the lack of diversification as farmers currently produce only the oyster mushroom, yet consumers are mostly interested in the button mushroom, which is favoured for its appearance and taste. Currently, no cultivated mushrooms are exported from Swaziland and producers have not yet engaged in any form of mushroom processing. Instead, from what they harvest, it was found that about six to 10 percent is consumed at household level and the remainder sold through four channels identified as: (i) the farm gate; (ii) retail market (supermarkets); (iii) middlemen; and (iv) food services industry (restaurants/hotels). Among the four channels, the retail market and farm gate were, respectively, identified as the most preferred. Between the two, the retail market offers a comparatively higher producer price and a relatively more dependable market. Cragg’s regression results revealed that producers who are likely to supply the retail market are those who manage a relatively large number of spawn impregnated bags, have a high labour endowment, own cold storage facilities, and are affiliated to mushroom producing groups. However, the difficulty in accessing market information and lack of bargaining power significantly constrains other producers’ plans to supply the retail market; hence, they end up selling through less remunerative channels, such as the farm gate. Producers’ decisions on the quantity of mushrooms supplied through the retail market are significantly affected by the difficulty in accessing transport and uncertainty about meeting the retailers’ quality requirements. Over 90 percent of mushroom producers in Swaziland currently participate in the industry through farmer groups. These groups are predominantly organised in two forms, depicted as model A and B, respectively. In model A, besides establishing their own by-laws, members produce mushrooms in one growing house where they share the costs and benefits of all preproduction, production and marketing activities. In model B, members also establish their own by-laws and share all pre-production activities. However, instead of producing under one roof, each member manages his/her own growing house and members are at liberty to make their own marketing arrangements independently. The results of the Propensity Score Matching method indicated that producers affiliated to model B groups have significantly higher levels of cooperation, which is evidenced in making joint decisions and performing shared manual activities. Participation in such groups also improves producers’ knowledge of the enterprise, and reduces the likelihood of internal free-riding. The overall results of the study point to the need to strengthen farmer training in mushroom production and value-addition. In attempting to improve producers’ access to key inputs and services, it is recommended that the government should relinquish its position (to the private sector) as the only provider of these services, allowing public institutions to assume a monitoring role. Producers’ competitiveness and sustainable participation in the mushroom value chain can be enhanced by institutionalising and strengthening collective action, which can possibly enable them to achieve economies of scale benefits in the input and product markets, and improve their bargaining position. As indicated in the empirical chapters, market availability for mushrooms is not a challenge in Swaziland. However, the lack of a market information system, expert assistance in agribusiness management, poor value chain governance, and lack of vertical coordination, predispose producers to high marketing and transaction costs such that they end up selling through less remunerative marketing channels.

Thesis (MScAgric (Agricultural Economics)--University of Stellenbosch, 2009. / The growing scarcity of fossil energy, expressed by rising real prices, justifies an investigation into the viability of utilising alternative, sustainable energy sources. Another motivation is to mitigate CO2 pollution resulting from using fossil fuels, causing climate change. Biomass has the potential to become a major global primary energy source during the next century. In South Africa, a limited amount of land is suitable for high‐potential biomass energy sources like sugar cane or grain. Large areas of South Africa are, however, dry and more suitable for woody biomass production. Cultivating trees in short‐rotation‐system plantations provides a sustainable and effective way of producing biomass. The first part of this study investigated the physical capacity of the Cape Winelands District Municipality (CWDM) for woody biomass production in short‐rotation systems, based on a land availability assessment using Geographic Information Systems (GIS). The CWDM comprises about 2.3 million hectares, of which about 175 000 ha with a slope of less than 35% have been identified as suitable for woody biomass production. Within the CWDM, the following land use classes were excluded: nonagricultural land, such as urban areas, bare rock and mines; ecologically sensitive areas; as well as areas with slope gradients that are too steep for biomass production, due to limited accessibility and trafficability. This was followed by an assessment of suitable tree species and their productivity rates – also using GIS with climate data (i.e. temperature extremes, frost and mean annual precipitation) and terrain data. By combining the identified biomass production sites with the productivity rates of the identified species, an annual supply of woody biomass for energy generation at a medium productivity of about 1 412 000 tonnes of fresh biomass is expected, using exotic species like Eucalyptus claducalyx ( and about 1 306 000 tonnes, using indigenous species like Acacia karoo).

Thesis (MScAgric)--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: The declaration of Namibia’s independence from South Africa in 1990 has seen the Namibian government aim to plan and implement development programmes that enhance a growing agricultural sector. The new government is facing challenges regarding the addressing of inequalities of income and the allocation and distribution of resources, which have resulted in implementation of the land reform programmes. On the international front, Namibia is a member country of various trade arrangements, such as the WTO, the SADC and SACU. The main driving force behind Namibia’s joining the international communities chiefly has been market access and trade policy reforms. The country’s agricultural sector, in particular the horticultural industry, in regards to table grape production, has been significantly affected by both domestic and regional policies, as well as by the WTO rules. The aim of this study is to determine the environmental factors that create a competitive advantage for the Namibian table grape industry in the international market. A detailed supply-chain analysis, augmented by Porter’s ‘diamond’ model, is used in this study to assess the determinants of the competitiveness of fresh table grapes. Interviews were conducted in informal, semi-structured questions. The questionnaires were mailed to several producers within the table grape-growing industry. Secondary information was obtained from reports, articles and research publications, among other sources. An expert assessment was used to verify information based on the reference methods. Consultations took place in the form of office visits and, in some cases, telephone interviews were held with different experts. The finding of the study shows that Namibia can supply the European markets during the northern hemisphere off-season with quality fresh table grapes. However, industry growth in the European Union (EU) market is constrained by limited free import quotas and high tariffs, specifically as regards seeded fresh table grapes, which are not exempt from such duties. Such constraints are in place despite Namibia’s meeting of international set quality standards, such as EUREPGAP. Moreover, there is potential for increasing supplies to the regional and Asian markets as well as the US market albeit to the lesser extent. Finally, Namibian fresh table grapes profitability is significantly affected by the high production and transaction costs incurred, as well as by the decline in business and the depreciation of the US Dollar against the Namibian Dollar. The study makes the general recommendation that producers should significantly reduce their transaction costs within the chain, by means of vertical co-ordination and integration. / AFRIKAANSE OPSOMMING: Met die verklaring van Namibië se onafhanklikheid van Suid-Afrika in 1990 het die Namibiese regering hulle dit ten doel gestel om ontwikkelingsprogramme te beplan en in werking te stel ten einde daardie land se groeiende landbousektor te versterk. Die nuwe regering moet tans uitdagings met betrekking tot inkomsteongelykhede en die toekenning en verspreiding van hulpbronne die hoof bied wat tot die inwerkingstelling van grondhervormingsprogramme aanleiding gegee het. Internasionaal is Namibië 'n lidland van verskeie handelsreëlings soos die Wêreldhandelsorganisasie (WHO), die Suider-Afrikaanse Ontwikkelingsgemeenskap (SAOG) en die Suider-Afrikaanse Doeane-unie (SADU). Die twee hooffaktore wat daartoe gelei het dat Namibië hom by die internasionale gemeenskappe skaar, is marktoegang en handelsbeleidhervormings. Die land se landbousektor, in besonder die tuinboukundige bedryf met die klem op tafeldruifproduksie, is aansienlik deur binnelandse en streeksbeleid asook deur die WHO-reëls geraak. Die doel van hierdie studie is om die omgewingsfaktore te bepaal wat in die internasionale mark aan die Namibiese tafeldruifbedryf 'n mededingende voordeel gee. Derhalwe gebruik die navorser 'n gedetailleerde aanvoerkettingontleding, ondersteun deur Porter se “diamantmodel”, om die beslissende faktore vir die mededingendheid van vars tafeldruiwe te evalueer. Onderhoude is met behulp van informele, semigestruktureerde vrae gevoer. Die vraelyste is aan verskeie produsente op die gebied van tafeldruifboerdery gepos. Sekondêre inligting is ook onder andere uit verslae, artikels en navorsingspublikasies verkry. Met behulp van 'n kundige evaluering is inligting op grond van die verwysingsmetodes geverifieer. Oorlegpleging met verskeie kundiges het in die vorm van kantoorbesoeke en in sommige gevalle deur middel van telefoononderhoude plaasgevind. Die studiebevinding toon dat Namibië die Europese markte gedurende die noordelike halfrond se tussenseisoen van gehalte- vars tafeldruiwe kan voorsien. Die uitbreiding van die bedryf in die Europese Unie (EU-) mark word egter deur beperkte gratis invoerkwotas en hoë tariewe aan bande gelê, in besonder met betrekking tot pitlose, vars tafeldruiwe wat nie van invoerbelasting vrygestel is nie. Hierdie beperkinge word opgelê ten spyte daarvan dat Namibië aan vasgestelde internasionale gehaltestandaarde soos EUREPGAP voldoen. Die moontlikheid bestaan boonop om lewering aan die streeks- en Asiatiese markte asook die VS-mark te verhoog, hoewel in 'n mindere mate. Laastens word die winsgewendheid van Namibiese vars tafeldruiwe beduidend deur hoë produksie- en transaksiekoste, asook deur die afname in sake en die waardevermindering van die Amerikaanse teenoor die Namibiese dollar geraak. Die studie maak die algemene aanbeveling dat produsente hulle transaksiekoste binne die ketting aansienlik met behulp van vertikale koördinering en integrasie moet verminder.

Thesis (MComm)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: This study investigates, primarily, value adding in the red meat value chain, and secondary, the scope of red meat consumption in the Langeberg on a formal level. The value chain is proposed as a value system, since the latter dispose of feedback capacity. This ability of a system means that the elements identified can change and influence each other, unlike a value chain, where information is traditionally sent linearly. Vanaf a systems approach, the production, processing and distribution of red meat are investigated by means of a qualitative and quantitative analysis of data. Critical points of change are identified to improve resource use within the value chain in order to decrease the price of meat. Changes in the red meat industry over the past 80 years had a distinct influence on the current structure of the red meat value chain. It is therefore necessary to understand the history in order to predict the future. Vanaf this viewpoint the Red Meat Scheme is discussed, as well as the typical structure of the value chain, which serves as a benchmark for the analysis to follow. Red meat refers to beef, sheep/lamb and pork. The analysis of data is done using Interactive Qualitative Analysis© and descriptive statistics. Open and close ended questions are included in questionnaires for the interviews. Respondents included are role players in the Langeberg red meat industry which are situated in the area as well as those who are directly involved, but not situated in the area. Role players in the Langeberg include producers, feedlots, agents, abattoirs, supermarkets and butcheries, while wholesalers vanaf outside who are involved in the area, are also contacted. Some interesting finding vanaf the quantitative analysis include 1) supermarkets and butcheries in the Langeberg differ, on average, only 29c/kg on a selection of meat cuts, 2) labour is the single largest expense for the majority of respondents, and 3) the per capita consumption of red meat in the area is considerably lower that the national norm: 15.78kg versus 25.39kg. If is apparent that the role of the informal market cannot be ignored and questions arise about the validity of the national norm. After analysing around 700 data cards the Red Meat Value System of the Langeberg were constructed. The most important characteristics of the system are that government regulations and supermarket standards seems to be the largest driver of change within the system, while price is the biggest receiver of influence (and therefore the largest “variable”). Recommendation that are supported by the analysis: Increase in genetic material of weaned animals leads to better quality meat; Direct supply by abattoirs to retailers increase both parties‟ ability to add value; Vertical integration in the value chain can increase the viability of enterprises; Availability of meat of different grading on retail level can increase the quality of carcasses within a given grading level; The regressive nature of VAT can decrease with the abolition of VAT on lower graded carcasses, while total abolition will benefit both the industry and consumers. / AFRIKAANSE OPSOMMING: Die studie ondersoek primêr die waardetoevoeging in die rooivleis waardeketting en sekondêr die omvang van verbruik in die Langeberg op 'n formele vlak. Die waardeketting word voorgestel as 'n waardestelsel, aangesien laasgenoemde oor wederkerende/terugvoer kapasiteit beskik. Hierdie vermoë van 'n stelsel beteken dat die elemente wat geïdentifiseer word mekaar kan verander en beïnvloed, terwyl 'n waardeketting, tradisioneel, inligting slegs lineêre aanstuur. Vanuit 'n stelselsbenadering word die produksie, verwerking en verspreiding van rooivleis ondersoek, deur gebruik te maak van beide kwalitatiewe en kwantitatiewe ontledings van data. Kritiese punte van verandering word geïdentifiseer om hulpbronne in die waardeketting beter te benut en sodoende vleis goedkoper aan die verbruiker beskikbaar te stel. Oor die afgelope 80 jaar het veranderinge in die rooivleisbedryf bepaald 'n invloed gehad op die huidige struktuur van die rooivleis waardeketting. Dit is dus nodig om die geskiedenis te verstaan om die toekoms te voorspel. Met hierdie uitgangspunt is die Rooivleisskema bespreek asook die tipiese struktuur van die waardeketting, as maatstaf vir die ontleding van data wat volg. Rooivleis verwys na bees-, skaap- en varkvleis. Die ontleding van data is gedoen m.b.v. Interactive Qualitative Analysis© en beskrywende statistiek. Vraelyste met ope en geslote vrae is gebruik tydens onderhoude. Respondente wat ingesluit is, is rolspelers in die bedryf in die Langeberg wat binne die area gesetel is, sowel as diegene wat direk betrokke is, maar nie in die area gesetel is nie. Rolspelers in die Langeberg sluit in produsente, voerkrale, agente, abattoirs, supermarkte en slaghuise, terwyl groothandelaars van buite die area wat in die area betrokke is, ook genader is. Verskeie interessanthede is gevind met die kwantitatiewe data ontleding; onder andere dat 1) supermarkte en slaghuise in die Langeberg, vir 'n mandjie van vleissnitte, met gemiddeld slegs 29c/kg verskil, 2) arbeid die grootste enkele uitgawe is vir die meerderheid van respondente en 3) die per kapita verbruik van rooivleis in die area heelwat laer is as wat die nasionale norm is, naamlik 15.78kg teenoor 25.39kg. Dit is dus duidelik dat die rol van die informele mark nie geïgnoreer kan word nie en vrae ontstaan oor die geldigheid van die nasionale norm. Na 'n ontleding van ongeveer 700 data kaarte is die Rooivleis-waardestelsel vir die Langeberg gekonstrueer. Die belangrikste kenmerke van die stelsel is dat dit wil voorkom asof regering regulasies en kettingwinkel standaarde die grootste drywer van verandering in die stelsel is, terwyl prys die grootste ontvanger van invloed (en dus die grootste “veranderlike”) is. Aanbevelings wat deur die ontleding ondersteun word: Verbetering in die genetiese materiaal van gespeende diere lei tot beter kwaliteit vleis; Direkte verskaffing deur abattoirs aan kleinhandelaars verbeter beide partye se vermoë om waarde toe te voeg; Vertikale integrasie in die waardeketting die lewensvatbaarheid van ondernemings kan verhoog; Beskikbaarstelling van verskillende graderings vleis op kleinhandelvlak die kwaliteit van die karkasse binne 'n gegewe graderingsvlak kan verbeter; Die regressiewe aard van BTW kan verminder word deur die afskaffing van BTW op laer gradering karkasse, alhoewel totale afskaffing tot groter voordeel van die bedryf en verbruikers sal wees.

Thesis (MScAgric (Agricultural Economics)--University of Stellenbosch, 2009. / This thesis constitutes a socio-economic study that centres on determining the economic value of groundwater in rural and agricultural uses. Limpopo Water Management Area (WMA1) and Luvuvhu/Letaba Water Management Area (WMA2) were studied in this thesis. In WMA1 table potato irrigation in the Polokwane agricultural area was studied, while Gaphago, Leokaneng, Kanana and Mohlajeng villages were studied for rural household groundwater use. In WMA2 tomato irrigation in the Mooketsi agricultural area was studied, while Lemondokop, Sereni and Hamashamba villages were studied for rural household groundwater use. Scoping field trips to the study area as well as secondary data revealed that groundwater was the dominant water source in all these selected study epicentres. In the Polokwane agricultural area, the farms typically relied on numerous boreholes. In the Mooketsi commercial farming area, groundwater was the dominant water source for most years, except when flush floods replenished farm dams. When flush floods occurred, farmers partially substituted surface water for groundwater because of economic reasons. This study determined the economic value of groundwater in two use sectors. First, determining the utility value of groundwater in selected rural households using the contingent valuation method. Utility value was defined by Dupuit (1844) and Marshall (1879) as the maximum sacrifice expressed in money terms which each consumer would be willing to make in order to acquire an object. Open-ended questions were used to determine willingness to pay during contingent household groundwater valuation. The overall mean willingness to pay for satisfactory household groundwater for the study area was R2.28 per kilolitre of groundwater.

Thesis (MPhil (Agricultural Economics))--University of Stellenbosch, 2005. / The Dorper Sheep species are exclusively bred for the dry arid conditions of some parts of South Africa. This species adapts easily and a prime lamb with great characteristics can be produced. There are two very important controlable factors regarding Dorper sheep farming namely herd management and cultivation. Herd management involves feeding, mating, mating methods and the handling of animals and their products. A few good objectives of herd management are the short breeding interval, low deaths and high performance rating. Genetic improvement can be achieved by using good rams, the selection of ewe-lambs as forthcoming breeding ewes, culling of uneconomic producers and the application of good breeding practices to improve meat production and reproduction. In this study a comparison is made between the management practices (herd management and cultivation) of Dorper farmers in 1990 and the management practices of Dorper farmers in 2004. For this aim the research of J.J. Ackermann (1990) was used. In 2004 questionnaires were send to Dorper farmers throughout South-Africa to get more information about their management practices. The conclusion of the study was that there was an increase in tertiary qualification of Dorper farmers from 1990 to 2004 and that more farmers used modern practices instead of the old traditional methods.

Thesis (MSc)--Stellenbosch University, 2009. / ENGLISH ABSTRACT: The Division of Aquaculture, Stellenbosch University (SU) was commissioned jointly by Namdeb Diamond Corporation (Pty) Ltd (Namdeb) and the Oranjemund Town Management Company Limited (OTMCo) to assess the aquaculture potential of the mining area at Oranjemund in Namibia. This document provides a proposal for the establishment of a marine finfish (yellowtail, Seriola lalandi) farm at Oranjemund. There appears to be considerable potential and as such this document provides a proposal for the establishment of a marine finfish (yellowtail, Seriola lalandi) farm at Oranjemund. A 5 000 metric ton (mt) yellowtail farm would have a turnover of about N$ 115 million per year and provides direct employment for about 200 people. Oranjemund is located immediately north of the Orange River at the most south-western corner of Namibia, approximately 1000 kilometers southwest of the capital, Windhoek. Namdeb currently operates an alluvial diamond mining operation along a 160 kilometer (km) stretch of the southern Namibia coastline, but is expected to downscale their activities significantly over the next 5 to 10 years. Aquaculture, the cultivation of fish, shellfish and aquatic plants, is the fastest growing food producing industry in the world and has considerable potential to contribute to the establishment of a vibrant post-mining economy in Oranjemund. The marine finfish industry is the most important and valuable aquaculture sector in many countries and is expected to grow significantly over the medium term, thereby also offering exciting opportunities for investment and business participation. The yellowtail farm venture is part of a greater plan to develop a vertically integrated aquaculture cluster at Oranjemund. The yellowtail development will be conducted in two phases, with Phase 1 the establishment of a pilot project to assess and confirm technical and financial feasibility. Phase 2 is the development of a 1 000 mt commercial farm. Other species being considered for development at Oranjemund include abalone (Haliotis midae), turbot (Psetta Maxima), rock lobster (Jasus lalandi) and oysters (Crassostria gigas). Several companies in South Africa are currently actively pursuing aquaculture expansion opportunities along both the west and east coasts of South Africa. Key amongst these is the development of abalone farms at Hondeklip Bay and Port Nolloth in the Northern Cape Province of South Africa by HIK Abalone Farm (Pty) Ltd (HIK) and NewFarmers Development Company Limited (NewF). The development of abalone and yellowtail farming at Oranjemund has been positioned as a further extension of the abovementioned initiative with HIK, NewF and a finfish fingerling supplier as potential operating, investment and development partners. The proposed business structure of the project provides investment opportunities for both institutional and Black Economic Empowerment (BEE) investors as well as employee equity instruments. Namibia’s economic prospects for the future are bright given its stable economic performance, good regulatory framework, and robust private sector. The country has experienced steady growth, moderate inflation, strong external surpluses and low indebtedness over the past several years as a result of generally prudent fiscal policies, a stable political environment, a fairly developed infrastructure, and a strong legal and regulatory environment. Economic growth since independence (1991) has averaged 4.3% per annum, and the World Bank’s Investment Climate Assessment Report currently notes that Namibia has a relatively attractive investment climate. The Government of Namibia has identified aquaculture as a prime priority development area. Both Vision 2030 and the NDP2 documents summon the country’s urgency to develop aquaculture and as such the Namibian Government has created an enabling environment for investment in aquaculture. / Namdeb Diamond Corporation (Pty) Ltd (Namdeb) and the Oranjemund Town Management Company Limited (OTMCo)

Thesis (MScAgric)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: The agro-food sector is swiftly moving towards an internationally interconnected system with a large variety of complex relationships, due to year-round supply, product differentiation and developments in information technologies, with the aim of enhancing competitiveness. In this context, vertical linking in the agro-food business especially, vertical coordination has gained attention. A case study approach is used to analyse two fruit supply chains -the table grape and citrus fruit chain. The study uses a transaction cost approach to analyse the supply chain of the fruit industry in South Africa. Transaction cost analysis (TCA) represents one possible approach to understanding and evaluating supply chain management and has the potential to be combined in an interdisciplinary setting with the insights provided by the marketing, logistics and organisational behaviour literatures. By means of literature study, constructs are identified that help explain the choices made, with regard to governance structures and the sources of competitiveness of supply chains. The question of governance structures is addressed in transaction cost economics (TCE) where asset specificity is of major importance. The sources of competitiveness are addressed both in the literature study and from discussions undertaken with key industry representatives. The empirical application of the TCE theory helped demonstrate the extent to which the exporter has adapted to changes in the global environment. The study revealed that for both supply chains, the role-players overcompensate to minimise their risk. Hence vertical integration rather than outsourcing takes precedence. Bilateral contracting and strategic alliances should be given priority to enhance effective communication, commitment and collective decision-making. This growing recognition of the competitive advantage that can be gained through improving coordination in the supply chain is the starting point for SCM initiatives and, these are important signals that in the long run will determine the sustainability and competitiveness of the industry. / AFRIKAANSE OPSOMMING: Die landbou-voedsel sektor is vinnig besig om na 'n internasionale interafhanklike stelsel met 'n groat verskeidenheid van ingewikkelde verhoudings te beweeg, as gevolg van heel-jaar aanbod, produk differensiasie en ontwikkeling in tegnologie, met die doel om meer mededingend te wees. In hierdie konteks geniet vertikale skakelinge in die landbou-voedsel bedryf, en veral vertikale koordinasie, baie aandag. 'n Gevalle studie benadering is gevolg om twee vrugte waardekettings te analiseer -die tafeldruiwe en sitrus ketting. Die studie maak gebruik van 'n transaksie koste benadering om die waardeketting van die Suid-Afrikaanse vrugte bedryf te analiseer. Transaksie koste analiese (TKA) verteenwoordig een moontlike benadering om waardekettingbestuur te verstaan en te evalueer. Dit het oak die potensiaal om gekombineer te word in 'n interdissiplinere omgewing met insigte wat deur bemarking, logistiek en organisatoriese gedrags literatuur verskaf word. Konstruksies is met behulp van literatuur studies ge"identifiseer wat help om die keuses wat gemaak is met betrekking tot bestuurstrukture en die bran van mededingendheid van waardekettings. Die kwessie van bestuurstrukture word aangespreek deur transaksie koste ekonomie (TKE) waarin bate-spesifiekheid van groat belang is. Die bran van mededingendheid is aangespreek deur beide literatuur te bestudeer en deur besprekings met sleutel-figure in die bedryf. Die empiriese toepassing van die TKE teorie help om die mate waarin die uitvoerder aangepas het tot veranderinge in die globale omgewing aan te toon. Die studie bewys dat firmas in beide waardekettings oorkompenseer vir transaksie koste deur vertikale integrasie in plaas van kontrakte. Bilaterale kontrakterings en strategiese vennootskappe moet prioriteit geniet om effektiewe kommunikasie, verpligtinge en kollektiewe besluitneming te verbeter. Die groeiende erkenning wat gegee word aan mededingende voordeel wat gewen kan word deur koordinasie in die waardeketting te verbeter is die begin punt vir ketting initiatiewe en, dit is belangrike seine wat die volhoubaarheid en mededingendheid van die bedryf in die lang termyn sal bepaal.

Thesis (MScAgric)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: This study examines the role of contracting in reducing transaction costs in smalIscale mussel farming in Saldanha Bay. Masiza Mussel Growers (Masiza), an initiative by the public and private sector to address the imbalances of the past through entrepreneurial development, are used as a case study hence a case study approach is followed. Two transactions were considered, one between Masiza and Blue Bay Aqua Farm (Blue Bay) and another between La Vie Sea Food Products (La Vie) and Masiza. These transactions form the basis for analysis. Market risks, uncertainties, environmental risks, information incompleteness, illiteracy, limited technical knowledge of farming, lack of appropriate infrastructure and lack of transport facilities are identified and examined as possible sources of transaction costs that constrain the existing supply chain relationship. The study shows that asset specificity, time specificity, and site specificity playa positive role in the supply chain as they result in relative dependency amongst parties. Opportunistic behavior within the existing supply chain is neutral, but appears to be relatively high on the spot or fresh live market. Characteristics of market transactions for mussels and associated transaction costs suggest that fresh-live spot market trading for Masiza is difficult to attain. This therefore motivates parties (Masiza) to contract or vertically integrate, as it is costly and risky to rely on spot live markets. Interviewees (Masiza) pointed out that the benefits associated with contract farming outweigh the transaction costs associated with this governance structure. Hence a market specification contract with the La Vie (a processing company), and a production management and resource provision contract with Blue Bay (a larger producer) were designed. They reduce transaction costs associated with fresh-live markets and ensure a more stable and reliable market for growers. / AFRIKAANSE OPSOMMING: Die studie ondersoek die rol van kontraktering in die vermindering van transaksie koste vir klein skaal mossel produsente in Saldanha baai. Die Masiza Mussel Growers (Masiza) word as gevallestudie gebruik. Twee transaksies met o.a. Blue bay Aqua Farm (Blue Bay) en La Vie Sea Food Products (La Vie) was ter sprake en laasgenoemde het as basis vir die analise gedien. Mark risiko, onsekerheid, omgewings risiko, gebrekkige informasie, ongeletterdheid, beperkte tegniese kennis, beperkte infrastruktuur en beperkte verroer fasiliteite is geidentifiseer en ondersoek as moontlike oorsake van hoë transaksie koste wat die huidige aanbod ketting strem. Die studie toon aan dat interafhanklikheid tussen die betrokke partye deur bate, tyd en area spesifisiteite bevorder word en dus 'n positiewe rol in die aanbod ketting speel. Opportunistiese gedrag binne die bestaande aanbod ketting is neutraal, maar blyk hoog te wees in die vars mark. Transaksie kostes en eienskappe blyk beduidende beperkinge te wees vir kleinskaal mossel produsente om aktief deel te neem in die mark. Die opstel van kontrakte (of vertikale integrasie) blyk dus 'n uitkoms te wees. Respondente het aangetoon dat kontrak boerdery voordelig blyk te wees. Laasgoemde het tot die ontwikkeling van mark kontrakte met die La Vie ('n verwerkings maatskappy) asook produksie bestuur en hulpbron voorsiennings kontrakte met Blue Bay ('n groot kommersiële produsent) gelei. Die kontrakte beperk transaksie koste vir die vars mark en verseker 'n stabiele en betroubare mark vir produsente. 'n Transaksie koste analiese word gebruik om transaksie kostes te ondersoek en te verifieer binne die industrie.