Measuring the agribusiness decision environment: Constructing an agribusiness confidence index for South Africa

South African agribusinesses are experiencing far reaching changes. Economists have developed indicators, generally known as indexes, to measure relative change in the industry. In this article the methodology to construct a business confidence index for agribusiness in South Africa is discussed. The objective of such an index is to determine the business confidence of agribusinesses as accurately as possible. Some 80 agribusinesses in South Africa are at present participating in the AGRIBUSINESS CONFIDENCE INDEX. For the first quarter of 2002 the index points to a 20% improvement in the business confidence of South African agribusinesses compared to the same period the year before, while in the second quarter the index was up 14% on the previous year. This increase in confidence goes hand in hand with some other positive trends in the agricultural sector of South Africa regarding competitiveness and investment.Agribusiness,

BUSINESS SYSTEMS FOR INCREASED COMPETITIVENESS IN THE AGRIBUSINESS SECTOR OF SOUTH AFRICA

Agribusiness,

CREATING A CHAIN REACTION: THE COMPETITIVENESS OF THE AGRICULTURAL INPUT INDUSTRY IN SOUTH AFRICA

The South African agricultural industry is consistently challenged to increase its competitiveness. The agribusiness supply chain starts with the input sector. The objective of this paper is therefore to determine the competitiveness of the various agricultural input industries in South Africa by using Balassa's method of Revealed Comparative Trade Advantage. This status will then be related to performance of the agricultural industry as a whole. South African manufacturing of farming requisites as a whole are relative marginally competitive in the international arena. However, positive trends in competitiveness is observed. The agricultural machinery industries is not competitive but is improving. The fertilizer industries is becoming increasingly more competitive while in the pesticides industries there is a decrease in the ability to compete internationally. From 1995 there is a relatively high and positive correlation between the competitiveness of the input industry and the agro-food industry in South Africa. This relationship substantiated the claim that fundamentally the South African agricultural economy is more competitive today then a decade ago.Agribusiness,

"WINNERS", "LOSERS" AND "TURNAROUNDS" IN THE SOUTH AFRICAN AGRO-FOOD AND FIBRE INDUSTRY

South African agribusinesses are now part of the global trading environment and must compete, despite the presence of highly "unequal economic playing fields". Competing under these conditions is hard, with South African agribusinesses involved in an exhausting race of "catch-up" with competitors. However, given a global regulatory environment that entrenches the notions of international competition (on both a regional and global level), to "catch-up" and compete is exactly what agribusiness has to do. An analysis of the agro-food and fibre complex reveals a remarkable achievement, namely that, despite difficult local conditions, the agricultural industry succeeded in operating more competitively for the last eight years. On the primarily level the sugar, groundnuts, oranges, apples, grapes and wool industries establish themselves as "winners" in the global trading environment. On the value added level the maize flour, apple juice, grape juice and raisins industries have distinguished themselves as "winners". Agribusiness in these industries clearly started to focus on the "right stuff". Unfortunately, some "losers" also emerged, while some industries created positive "turnaround" situations.Agribusiness,

DETERMINANTS OF COMPETITIVENESS IN THE SOUTH AFRICAN AGRO-FOOD AND FIBRE COMPLEX

The competitiveness of the South African agri-food and fibre complex depends upon a number of factors: technological, socio-political and economic. This paper attempts to identify and analyse such factors by using a framework of analysis proposed by Michael Porter (1990). Appropriate measures to increase competitiveness are proposed. These include: improved supply chain management, cost reduction, contractual pricing and the establishment of a clear "agribusiness development policy".Industrial Organization,

COMPETING AT THE "CUTTING EDGE": OPPORTUNITIES FOR AGRIBUSINESS PARTNERSHIPS AND CO-OPERATION IN THE SOUTHERN AFRICAN REGION

What are the opportunities for agricultural business, trade and co-operation in Southern Africa and, in particular, South Africa and Zimbabwe - two of the most significant economies in the SADC region? The competitiveness status of agribusiness - from a global viewpoint - in sixteen food and fibre supply chains in Zimbabwe and South Africa is determined in this study using the Revealed Comparative Advantage method of Balassa. Based on this status, there is potential in certain agro-food chains for supply chain integration and cooperation between agribusinesses in South Africa and Zimbabwe. Such partnerships will improve competitiveness and will allow agribusinesses to compete at the "cutting edge" in the global environment.Agribusiness,

TECHNOLOGY, RESEARCH AND DEVELOPMENT AND THE IMPACT ON THE COMPETITIVENESS OF THE SOUTH AFRICAN AGRO-FOOD SUPPLY CHAINS

Industrial Organization, Research and Development/Tech Change/Emerging Technologies,

DETERMINANTS OF COMPETITIVENESS IN THE SOUTH AFRICAN AGRO-FOOD AND FIBRE COMPLEX

The competitiveness of the South African agro-food and fibre complex depends on a number of factors: technological, socio-political and economic. This paper attempts to identify and analyse such factors by using a framework of analysis proposed by Michael Porter (1990). Appropriate measures to increase competitiveness are proposed. These include improved supply chain management, cost reduction, contractual pricing and the establishment of a clear "agribusiness development policy".Agribusiness, Industrial Organization,

ARE WE STILL INVESTING IN SOUTH AFRICAN AGRICULTURE: PERCEPTIONS, EVIDENCE AND ANALYSIS

In this paper the question of investment in the South African agro-food and fibre complex is explored. The analysis is based on empirical values and opinions/perceptions from ±400 agribusinesses operating in this complex. From the analysis it is clear that decisions to invest in the agro-food and fibre complex in South Africa must be viewed as on "knife-edge". A range of recommendations and policy options will be required to activate investment drivers and to address constraints in order to stimulate investment and to achieve growth.Agricultural and Food Policy,

HOW COMPETITIVE IS AGRIBUSINESS IN THE SOUTH AFRICAN FOOD COMMODITY CHAIN?

The competitiveness of sixteen selected food commodity chains in South Africa was calculated using the Revealed Comparative Advantage method of Balassa. The majority of commodity chains are marginally competitive. Except for the maize, pineapple, and apple chains, the competitiveness index generally decreases when moving from primary to processed products. This implies that benification or "value adding" opportunities in South Africa are restricted. To compete in a global economy strategies should be followed that improve the competitiveness of the whole food supply chain. It is i.e. not good enough for farmers to be able to compete globally at farm gate level, whilst the locally processed commodities that is sold to the consumer is not competitive in the world market.Agribusiness,