Thesis (MScAgric.)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: After sixty years of state control, the agricultural sector in South Africa has been transformed
to the so-called free dispensation, with the driving forces being market access and rules of the
WTO. On the one hand, this increased the exposure of the sector, particularly at international
level where interest for South African produce developed. On the other hand, transformation
induced a considerable degree of price squeeze and risk in the production of certain
commodities including wheat.
Notwithstanding, local wheat producers like any other farmers are generally price takers, and
in some cases do not have a comparative advantage in what they produce. This is worsened
by policy distortions in product markets, although to a lesser extent than before. These
distortions are responsible for farmers to make decisions that are neither economically
efficient nor optimal in a social sense.
Therefore, the uncertain future of the wheat industry, particularly in the Western Cape,
including the changing business environment, urges producers to adapt quickly if they wish to
stay in business. Hence, the challenge for a farmer and agricultural support organisations is to
find solutions to these problems. One of the factors that can be looked into in finding
solutions is to look at the demand side of the equation by taking product differentiation and
market identification into account. In other words, products that carries a specific character,
and a niche market where these products attain higher prices are the main objectives of this
exercise.
In looking at these options, it is necessary to first study the end consumer of these products.
Looking at the local market first, there is a relatively small but growing market for high priced
niche products, but for the most part, local consumers are looking for low cost commoditytype
products. In many cases, South Africa is marginally competitive in these products and so
must look at alternative markets. On the export market, on the other hand, consumers are
generally more sophisticated and specific in the kind of food they demand, where they are
looking for quality and tracebility, and are willing to pay a premium which can be exploited.
Therefore, the aim of this study is to determine whether wheat would have a comparative
advantage if produced under organic management, as a system that have products with these
attributes. The study first evaluates the comparative advantage of the existing industry, the
so-called conventional wheat, specifically looking at the policy environment around this
commodity, as these are likely to affect the potential of organic wheat. The Policy Analysis Matrix technique is used to calculate various indicators of comparative advantage and to
identify the effects of policy measures with regard to wheat. The analysis used the available
data for ten selected farming areas. On the other hand, organic wheat farming is not practised
in the Western Cape at present. As a result, expert assessment was used to provide
information based on the reference method.
As the study is the comparison of two systems, the results therefore indicates that some areas
of the Western Cape do not have a comparative advantage in wheat production under
conventional practices, which would not be the case if produced under organic management.
The reasoning underlying this is complex, but mainly traced from high levels of input use that
carries a distorting effect, partly because of tariffs on imported inputs, unlike organic
production which is less subject to this effect. The net effect of the whole policy environment
has a negative impact on producers including those of potential organic wheat, as some
policies are likely to affect this potential industry. Consequently, it is recommended that
farmers must evaluate their options by looking at systems that utilise less distorted inputs, and
hence higher profits like organic farming. / AFRIKAANSE OPSOMMING: Na sestig jaar van staats-geheer is die landbsektor van Suid-Afrika omvorm na In
sogenaamde vrye bedeling met marktoegang en die reels van die WHO as drywers. Hierdie
omvorming het enersyds die blootstelling van die landbou sektor verhoog, veral in die
buiteland waar belangstelling in Suid-Afrikaanse produkte toegeneem het. Aan die ander kant
het die transformasie die realiteite van die prys-koste knyptang en produksierisiko, ook in die
geval van koring, na yore gebring.
Plaaslike koringprodusente, soos aIle ander boere, is in die algemeen prysnemers en in
sommige gevalle het hulle weinig mededingende voordele in wat hulle produseer. Dit word
vererger deur beleidsversteurings in produkmarkte al is die versteurings minder as in die
verlede. Die versteurings gee egter steeds daartoe aanleiding dat boere soms besluite neem
wat nie ekonomies of sosiaal optimaal is nie.
Dit volg dus dat die onsekere toekoms van die koringbedryf, veral in die Wes-Kaap, asook die
vinnig veranderende besigheidsomgewing produsente noop om vinnig by die veranderende
omstandighede aan te pas indien hulle in besigheid wil bly. Die uitdaging is dus vir boere en
hul ondersteuningmeganismes om oplossings vir voorgenoemde probleme te vind. Een
moontlike oplossing kan gevind word deur die potensiaal van produkdifferensiasie en mark
identifikasie aan die vraagkant van die vergelyking te ondersoek. Met ander woorde, die
identifikasie van nis-produkte met In spesifieke karakter wat hoer pryse behaal.
Ten einde sodanige produkte te identifiseer is dit nodig om die verbruiker daarvan te
analiseer. In die plaaslike mark is daar In relatiewe klein maar vinnig groeiende mark vir hoewaarde
nis-produkte. Dit moet egter toegegee word dat die grootste gedeelte van plaaslike
verbruikers meer ge'interesseerd is in goedkoop kommoditepe produkte. In die meeste
gevalle is Suid-Afrika marginaal kompeterend in hierdie produkte en moet altematiewe
markte dus ondersoek word. Hierteenoor is verbruikers in sekere gedeeltes van die
uitvoermark meer gesofistikeerd en spesifiek in die aard van die produkte wat verlang word.
Die fokus is veral op kwaliteit en naspoorbaarheid en sodanige verbruikers is gewoonlik
bereid om In premie te betaal vir produkte wat hierdie behoeftes bevredig.
Die doel van hierdie studie is dus om te bepaal of organiesgeproduseerde koring In
mededingende voordeel sou he indien dit aan die eienskappe van kwaliteit en naspoorbaarheid
sou voldoen. In hierdie studie word die relatiewe mededingendheid van die bestaande stelsel, sogenaamde konvensionele koringproduksie, geevalueer met spesifieke verwysing na die
beleidsomgewing waarbinne produksie plaasvind. Hierdie beleidsomgewing sal natuurlik ook
In invloed uitoefen op die organiese produksie van koring',f 'n BeleidS}nalise ¥atriks word
gebruik om verskillende indikatore van mededingende voordeel te bereken en om sodoende
die invloed van die beleidsmaatreels op die koringbedryf te analiseer. Vir konvensionele
produksie is bestaande data uit tien verskillende boerderygebiede gebruik. Alhoewel geen
voorbeelde gevind kon word van bestaande gesertifiseerde organiese koringproduksie in die
Wes-Kaap nie, is die ekspert-groep tegniek met behulp van die verwysingsmetode gebruik
om die nodige data te genereer.
Aangesien die studie 'n vergelyking tussen twee stelsels is, is gevind dat waar die
konvensionele produksie van koring geen mededingende voordele in sekere gebiede van die
Wes-Kaap geniet nie, dit weI mededingende voordele tydens organiese verbouing in hierdie
gebiede geniet. Alhoewel die onderliggende redes hiervoor kompleks is, kan dit herlei word
na die hoe vlakke van beleidslersteurde insette wat tydens die konvensionele produksie van
koring gebruik word. Hierteenoor steun organiese produksie meer op plaasgeproduseerde
insette wat die distorsies dus verminder. Die netto effek is egter dat die beleidsomgewing 'n "
negatiewe impak op produsente, ingeslote potensiele organiese produsente, inhou. Gevolglik
word dit aanbeveel dat produsente hul opsies moet oorweeg deur veral te fokus op stelsels,
soos organiese verbouing, wat minder beleidversteurde insette gebruik en waar die
winsmoontlikhede dus hoer is.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52344 |
| Date | 12 1900 |
| Creators | Mahlanza, Bongiswa |
| Contributors | Vink, Nick, Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 226 p. : ill. |
| Rights | Stellenbosch University |
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