International Trade, Consumer Behavior and Trust: Factors Affecting Agribusinesses in Developing Countries. Executive Interview: Ronald D. Hampton, Chair and Associate Professor of Marketing University of Nebraska

With the increasing complexity of global food systems, producers in developing countries are faced with challenges associated with market access to developed and other developing countries. There is clear evidence that the fastest growing developing countries are the ones engaging in trade and participating in the global market. The difficulty for developing countries, especially Small and Medium Enterprises (SMEs) in those countries is the logistics and agreements needed to enter international markets and benefit from trade. Global production networks are becoming extremely complex. Arms-length trade is now confined to commodities with low returns, thus access to high-income yielding activities requires participation in global value chains. Over the past decades, the global food system has concentrated in the hands of a few large companies. All these changes raise questions about market structures, market power, and strategies for small-scale agribusinesses in developing countries to insert themselves into the global food system. This paper summarizes the interview conducted with Dr. Ronald D.Agribusiness,

The potential impact of the Doha Development Agenda on the South African economy: liberalising OECD agriculture and food trade

This article reports the results of a static computable general equilibrium (CGE) model on the possible liberalisation of agriculture and food trade in the OECD countries. Liberalisation of trade was simulated assuming a reduction in import tariffs, the tax rate on factor use and export subsidies in four steps of 25% points each. Such simulations were run in the GLOBE model then adjusted and used as a policy shock to the PROVIDE model. The results show that the weighed average world price (adjusted) changes will range between -19.6 to +3.8% for imports and between -3.0 and +29.7% for exports at 75% liberalisation. The results from the single country CGE model show that the South African economy would respond positively to the world price changes, with government and macro variables showing minimal but positive responses. Household consumption expenditures generally show positive changes, implying increased factor incomes. Not all sectors will be positively affected even though the overall effect is positive.Agricultural and Food Policy,

South Africa and Chile: Agricultural Trade Relationships

This article considers Chile and South Africa’s agricultural policy evolutions in terms of trade. It also looks at Chile and South Africa’s trade with the rest of the world, particularly with regards to agricultural trade. From an agricultural trade perspective, Chile’s position as a direct competitor of South Africa for the EU and USA markets is clearly apparent, primarily due to their joint location in the southern hemisphere. Furthermore, the movement of agricultural products between these nations from a South African export perspective is discussed. This article explores the potential for South Africa to increase its exports to Chile by deepening existing trading and investigating the expansion of trade lines. Two policy observations can be identified from this study with a view to improving South Africa’s current agricultural sector and increasing its exports trade to Chile. The first observation is the manner in which the agricultural budget is allocated (following Chile’s successful budget allocation as a guide). The second observation is, should South Africa negotiate a Free Trade Agreement (FTA) with Chile, the opportunities for agricultural export expansion from the products listed in the annexe shown on the final page.International Relations/Trade,

Impact of export promotion and market development on social welfare in South Africa: Evidence from the agricultural sector

South Africa’s industries in the agricultural sector spend some of the statutory levy income on export promotion and market development (EPMD) activities. Some industries argue that statutory levy expenditure on EPMD activities generates satisfactory returns on investment but empirical evidence is yet to be presented to support the argument. Hence, this study filled this gap by building a unique data set based on statutory levy expenditure on EPMD for four industries (citrus, deciduous fruits, table grapes and wine) and used econometric analysis to assess the impact of EPMD on social welfare over a 10-year period (2006–2015). Furthermore, we estimated the returns generated on social welfare per rand of statutory levy expenditure. In the analysis, we controlled for unobserved heterogeneity, multicollinearity and reverse causality. The results suggest that statutory levy expenditure on EPMD has a statistically significant positive impact on social welfare across the four industries. On average, a unit increase in statutory levy expenditure on EPMD leads to an improvement in social welfare ranging between 0.2% and 0.4% depending on the industry. In addition, the results suggest that 1 rand spent on EPMD for the four industries in question, on average, generates a US$26 worth of improvement in social welfare. Conclusively, statutory levy expenditure on EPMD played a key role in enhancing social welfare improvement. Therefore, there is a need to mobilise more resources to facilitate the EPMD initiative into new markets and products for the industries

Stakeholder-driven transformative adaptation is needed for climate-smart nutrition security in sub-Saharan Africa.

Improving nutrition security in sub-Saharan Africa under increasing climate risks and population growth requires a strong and contextualized evidence base. Yet, to date, few studies have assessed climate-smart agriculture and nutrition security simultaneously. Here we use an integrated assessment framework (iFEED) to explore stakeholder-driven scenarios of food system transformation towards climate-smart nutrition security in Malawi, South Africa, Tanzania and Zambia. iFEED translates climate-food-emissions modelling into policy-relevant information using model output implication statements. Results show that diversifying agricultural production towards more micronutrient-rich foods is necessary to achieve an adequate population-level nutrient supply by mid-century. Agricultural areas must expand unless unprecedented rapid yield improvements are achieved. While these transformations are challenging to accomplish and often associated with increased greenhouse gas emissions, the alternative for a nutrition-secure future is to rely increasingly on imports, which would outsource emissions and be economically and politically challenging given the large import increases required. [Abstract copyright: © 2024. The Author(s).

A new integrated assessment framework for climate-smart nutrition security in sub-Saharan Africa : the integrated Future Estimator for Emissions and Diets (iFEED)

Funding statement This work was supported by the Biotechnology and Biological Sciences Research Council through UK Research and Innovation as part of the Global Challenges Research Fund, AFRICAP programme, grant number BB/P027784/1.Peer reviewedPublisher PD

Farm and retail prices in the South African poultry industry : do the twain meet?

CITATION: Mkhabela, T. & Nyhodo, B. 2011. Farm and retail prices in the South African poultry industry : do the twain meet? International Food and Agribusiness Management Review, 14(3):127-146.The original publication is available at http://www.ifama.orgThe study intended to determine the producer (farm)-retail price transmission behavior in the South African poultry industry. At the heart of the study was to desire to establish whether there was symmetry or asymmetry in the price transmission. Using price data from 2000 to 2010 and employing both the Houck and Error Correction Model (ECM) approaches the study found that there was symmetry in the farm-retail price transmission of poultry in South Africa, where a change in farm price of chicken was observed to lead to a similar change in the retail price in South Africa. The price setting system in the poultry industry was further defined by estimating elasticities of price transmission and it was found that retail price is very sensitive to change in farm price, particularly falling prices.http://www.ifama.org/resources/Documents/v14i3/Mkhabela-Nyhodo.pdfPublisher's versio

The impact of the Doha round of WTO agricultural negotiations on the South African economy

Thesis (MScAgric (Agricultural Economics)--University of Stellenbosch, 2009.The Doha Round of negotiations on the liberalisation of agricultural trade inherited complications from its predecessor - the Uruguay Round (UR). It needs to be noted, as one of the fundamental differences, that agriculture sectors in the developed countries of the Organisation for Economic Co-operation and Development (OECD) get support from their governments. In contrast to the situation, in the developing countries, agriculture is taxed to generate government revenue. The subsidies that farmers receive in the developed countries affect farmers globally through world prices (world prices depression). Therefore protection and greater subsidies should be not encouraged. As such, after a long time of preferential treatment, agriculture trade was tabled as a separate issue of negotiations at the UR and resulted to the round to be prolonged. However, one of the achievements of the UR was imposing of bound tariffs on agricultural products and determining tariff equivalence for non-tariff measures. Then, the Doha Round (DR) also known as the Doha Development Agenda (DDA) which is the first round to place development and focus strongly on agricultural liberalisation as a tool for development. International trade theory supports agricultural liberalisation, as negotiated in the DDA. Therefore, the DDA, in seeking more liberalised agricultural markets, continues a theoretically sound approach, as in the UR. The effects of liberalising agricultural trade in the DDA will differ across countries, whereas some will gain, others may loose, and the same situation is true for different sectors within an economy. The focus of the DDA on agriculture, as a tool of development, links well to the fact that agriculture in the developing countries accounts for a substantial share of their gross domestic products (GDPs) and exports. This situation, therefore, calls for a closer consideration of the possible impact of agricultural liberalisation in South Africa even though agricultural share of GDP is less than 4 percent

International Trade, Consumer Behavior and Trust: Factors Affecting Agribusinesses in Developing Countries

With the increasing complexity of global food systems, producers in developing countries are faced with challenges associated with market access to developed and other developing countries. There is clear evidence that the fastest growing developing countries are the ones engaging in trade and participating in the global market. The difficulty for developing countries, especially Small and Medium Enterprises (SMEs) in those countries is the logistics and agreements needed to enter international markets and benefit from trade. Global production networks are becoming extremely complex. Arms-length trade is now confined to commodities with low returns, thus access to high-income yielding activities requires participation in global value chains. Over the past decades, the global food system has concentrated in the hands of a few large companies. All these changes raise questions about market structures, market power, and strategies for small-scale agribusinesses in developing countries to insert themselves into the global food system. This paper summarizes the interview conducted with Dr. Ronald D. Hampton, Chair and Associate Professor of Marketing and Director of the Agribusiness Program at the University of Nebraska in Lincoln. Dr. Hampton has ample experience in international marketing, marketing management, retail management, leadership, and consumer behavior. The objective of this interview is to gain a better understanding of factors affecting small-scale agribusinesses in a context of international trade. This interview took place during the 17th Annual World Forum and Symposium in Parma, Italy in June, 2007

International Trade, Consumer Behavior and Trust: Factors Affecting Agribusinesses in Developing Countries. Executive Interview: Ronald D. Hampton, Chair and Associate Professor of Marketing University of Nebraska

With the increasing complexity of global food systems, producers in developing countries are faced with challenges associated with market access to developed and other developing countries. There is clear evidence that the fastest growing developing countries are the ones engaging in trade and participating in the global market. The difficulty for developing countries, especially Small and Medium Enterprises (SMEs) in those countries is the logistics and agreements needed to enter international markets and benefit from trade. Global production networks are becoming extremely complex. Arms-length trade is now confined to commodities with low returns, thus access to high-income yielding activities requires participation in global value chains. Over the past decades, the global food system has concentrated in the hands of a few large companies. All these changes raise questions about market structures, market power, and strategies for small-scale agribusinesses in developing countries to insert themselves into the global food system. This paper summarizes the interview conducted with Dr. Ronald D