Thesis (MAgricAdmin (Agricultural Economics))--University of Stellenbosch, 2005. / The wine industry is one of the oldest commercial activities in South Africa. The South African
wine grape industry annually produces more than a million tonnes of grapes, making the country
the ninth largest producer in the world. The total area under wine grape production is divided into
eight regions for administrative purposes. These boundaries are a legacy of the era of controlled
marketing and there is continued meaningfulness of having various classifications such as ‘wine of
origin’ scheme.
The purpose of this study is to identify the factors that determine the producers’ choice of wine
grape cultivars in the wine regions in South Africa. Time series data for the period 1990-2003 were
used to estimate the parameters of linear regression models. Two equations for each wine grape
cultivar in each region were postulated and estimated using Ordinary Least Squares as applied with
Eviews. Further, a stepwise regression as applied in STATISTICA was used to eliminate the
parameters that were not statistically significant at five percent significant level.
In identifying the factors that determine the choice of wine grape cultivars in the regions, the
results showed that each wine grape cultivar in each region has its own factors influencing the
producers’ choice of that specific wine grape cultivar. Same wine grape cultivars in different
regions similarly have its own factors determining the producers’ choice. The implication of this is
that there are differences in terms of the requirements and types of crops and wine grape cultivars
grown in each region. However, the most important result that emerged with regular frequency is
that, the factors determining the producers’ choice of a specific wine grape cultivar for each region
is price of other wine grape cultivars and competitive products in that wine region. The price of
specific wine grape cultivars only had an influence on few wine grape cultivars. The implication is
that the producers in South Africa appears to consider the prices of other wine grape cultivars and
competitive products before making a choice of whether to plant or uproot a specific wine grape
cultivar more than the price of the specific wine grape cultivar. This supports the theory that farm
prices play a key role in allocating resources and in rewarding efficient producers.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/2474 |
| Date | 12 1900 |
| Creators | Musango, Josephine Kaviti |
| Contributors | Lombard, J. P., Mkhabela, T. S., University of Stellenbosch. Faculty of Agrisciences. Dept. of Agricultural Economics. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Stellenbosch |
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