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Analysis of determinants of South Africa's sugar production and export performance within the tripartite free trade area : a case of raw and refined sugar

This study was conducted with the aim of investigating the trends and determinants of
South Africa’s sugar production and exports within the TFTA between 1996 and 2014.
The specific objectives of the study were (1) to identify trends in South Africa’s sugar
production and exports within the TFTA between 1996 and 2014; (2) to determine the
drift rate in South Africa’s sugar exports within the TFTA between 1996 and 2014; (3)
to investigate the correlation between South Africa’s sugar production and exports
between 1996 and 2014; and (4) to determine the factors that affect production and
exports in South Africa’s sugar industry in order to identify the industry’s major
challenges and opportunities for sustained performance.
The secondary data, obtained from the Economic Analysis and Agricultural Statistics
Directorate of the Department of Agriculture, Forestry and Fisheries (DAFF), were
used to meet the first three objectives of the study. The primary data, obtained by
means of a survey questionnaire and interviews with key stakeholders, were used to
meet the fourth objective of the study. A 7-point Likert scale was applied to indicate
the degree to which each of the determining factors are perceived to affect the
performance and resulting competitiveness of the sugar industry. The Johansen test
and Porter’s Diamond Model were the analytical techniques used in the study.
The results of the analysis of the secondary data revealed continued fluctuations in
sugar production in South Africa between 1996 and 2014. On the basis of this, the
researcher rejected the hypothesis that there is no trend in South Africa’s sugar
production. It was therefore concluded that seasonal variations accounted for these
fluctuations in the sugar industry. As determined using the Johansen test, drift rate
variations came to 51%, indicating that there is potential for growth in South Africa’s
sugar exports. This was confirmed by the results of the bivariate correlation between
production and exports which clearly indicated a positive relationship between the two
and prompted the researcher to accept the hypothesis that there is a positive
relationship between the production and export of sugar.
In determining the factors that influence South Africa’s sugar production and exports,
a number of obstacles to competitiveness success were identified. With regard to
sugar production, applying Porter’s Diamond model revealed that the major constraints experienced by respondents in the study area were the availability of
skilled labour; cost of doing business; level of infrastructure development; cost of
infrastructure; water availability; climatic conditions; soil quality; rainfall patterns;
availability of financial services; access to credit; crime; and HIV/AIDS. In terms of
exports, tariffs were found to be the major constraint along with certain of the abovementioned
factors. While the majority of respondents view macroeconomic policy and
trade policy as export constraints, South Africa’s labour, B-BBEE and competition
policies are seen as neither constraining nor supportive. Product design; packaging;
labelling and pricing; as well as the manager’s willingness to export; level of education
and training; length of time in the business; experience; and language had a positive effect on competitive success. / Agriculture, Animal Health and Human Ecology / M. Sc. (Agriculture)

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/23121
Date03 1900
CreatorsMamashila, Mokgoshi John
ContributorsAntwi, M. A.
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeDissertation
Format1 online resource (ix, 85 leaves) : illustrations, maps (color)

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