The competitiveness of the South African citrus industry in the face of the changing global health and environmental standards
- Authors: Ndou, Portia
- Date: 2012
- Subjects: Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11162 , http://hdl.handle.net/10353/477 , Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
- Full Text:
- Date Issued: 2012
- Authors: Ndou, Portia
- Date: 2012
- Subjects: Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11162 , http://hdl.handle.net/10353/477 , Citrus fruit industry -- South Africa , Food industry and trade -- Safety regulations , Agricultural industries -- Safety regulations , Food -- Safety measures -- International cooperation , Export marketing -- Law and legislation -- South Africa , Competition, International
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
- Full Text:
- Date Issued: 2012
Socio-economic impact of the participatory and conventionally implemented irrigation and livestock development projects: a case of Beitbridge and Mberengwa Districts of Zimbabwe
- Authors: Ndou, Portia
- Date: 2008
- Subjects: Irrigation -- Zimbabwe , Water resources development -- Zimbabwe , Range management -- Zimbabwe , Livestock projects -- Zimbabwe
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11191 , http://hdl.handle.net/10353/82 , Irrigation -- Zimbabwe , Water resources development -- Zimbabwe , Range management -- Zimbabwe , Livestock projects -- Zimbabwe
- Description: The purpose of this study was to evaluate the impact of participatory and conventional approaches to livestock and irrigation project implementation in Zimbabwe’s Beitbridge and Mberengwa districts. The conventional livestock projects performed better than the participatory. Despite the breed for the participatory livestock projects being unsuitable for the environment, the farmers failed to utilize the drugs and surplus funding set aside for replacement of dead cattle. Farmer training was found to be of paramount importance in the establishment of the livestock projects in spite of the participatory approach used for the implementation of the projects. Also the technical backup and support for the livestock project beneficiaries is important to ensure early rectification of problems that may affect the smooth running of the projects as well as an opportunity to introduce new technical advice to boost production. Livestock projects take long period of time to establish, i.e. for the financial turn over to be realized. It takes long time for farmers in these projects to make investments from the proceeds of the livestock projects. For this reason, there is need for the number of beneficiaries for each pass-on livestock project to take into account the number of beasts at project establishment and also the number per each beneficiary group. However, the projects should still be encouraged as they will take full operation at a later stage and be of benefit to the rural disadvantaged who cannot access other means to own cattle, which in turn play a pivotal role in crop production (through draft power, manure provision) and cash earnings that indirectly ensures food security. Regardless of approach used, livestock projects should be strongly supported because the districts under study are prone to poor crop production and hence the cattle can be a source of income and food. Participatory irrigation projects performed better than the conventionally implemented, despite their small hectarages. This proved that farmer participation can greatly improve the efficiency of development work and eliminate many of the problems regarding proprietorship and enhance development activities at community level. Conventional irrigation projects were plagued by problems of mismanagement and theft as was reflected by poor performance and malfunction of the conventional Chingechuru and Chimwe-Chegato irrigation schemes. Fencing theft atChingechuru irrigation scheme had brought it to a stand still. However, the larger incomes associated with the conventionally implemented irrigation projects were the result of the larger areas under cropping for these projects. Production levels in participatory irrigation schemes were good. Adoption of most technical innovations in livestock projects was found to be associated with the conventional approach. Asset procurement was a function of the farmer’s accessibility to non-project income, like formal employment, and procurement of specific assets applied more to project type than the approach to project implementation. This study found that the approach used in implementation had a greater influence on the performance of irrigation projects than livestock projects.
- Full Text:
- Date Issued: 2008
- Authors: Ndou, Portia
- Date: 2008
- Subjects: Irrigation -- Zimbabwe , Water resources development -- Zimbabwe , Range management -- Zimbabwe , Livestock projects -- Zimbabwe
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11191 , http://hdl.handle.net/10353/82 , Irrigation -- Zimbabwe , Water resources development -- Zimbabwe , Range management -- Zimbabwe , Livestock projects -- Zimbabwe
- Description: The purpose of this study was to evaluate the impact of participatory and conventional approaches to livestock and irrigation project implementation in Zimbabwe’s Beitbridge and Mberengwa districts. The conventional livestock projects performed better than the participatory. Despite the breed for the participatory livestock projects being unsuitable for the environment, the farmers failed to utilize the drugs and surplus funding set aside for replacement of dead cattle. Farmer training was found to be of paramount importance in the establishment of the livestock projects in spite of the participatory approach used for the implementation of the projects. Also the technical backup and support for the livestock project beneficiaries is important to ensure early rectification of problems that may affect the smooth running of the projects as well as an opportunity to introduce new technical advice to boost production. Livestock projects take long period of time to establish, i.e. for the financial turn over to be realized. It takes long time for farmers in these projects to make investments from the proceeds of the livestock projects. For this reason, there is need for the number of beneficiaries for each pass-on livestock project to take into account the number of beasts at project establishment and also the number per each beneficiary group. However, the projects should still be encouraged as they will take full operation at a later stage and be of benefit to the rural disadvantaged who cannot access other means to own cattle, which in turn play a pivotal role in crop production (through draft power, manure provision) and cash earnings that indirectly ensures food security. Regardless of approach used, livestock projects should be strongly supported because the districts under study are prone to poor crop production and hence the cattle can be a source of income and food. Participatory irrigation projects performed better than the conventionally implemented, despite their small hectarages. This proved that farmer participation can greatly improve the efficiency of development work and eliminate many of the problems regarding proprietorship and enhance development activities at community level. Conventional irrigation projects were plagued by problems of mismanagement and theft as was reflected by poor performance and malfunction of the conventional Chingechuru and Chimwe-Chegato irrigation schemes. Fencing theft atChingechuru irrigation scheme had brought it to a stand still. However, the larger incomes associated with the conventionally implemented irrigation projects were the result of the larger areas under cropping for these projects. Production levels in participatory irrigation schemes were good. Adoption of most technical innovations in livestock projects was found to be associated with the conventional approach. Asset procurement was a function of the farmer’s accessibility to non-project income, like formal employment, and procurement of specific assets applied more to project type than the approach to project implementation. This study found that the approach used in implementation had a greater influence on the performance of irrigation projects than livestock projects.
- Full Text:
- Date Issued: 2008
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