Structure, Conduct and Performance in the South African Potato Processing Industry

The South African Potato industry was deregulated in the early 1990’s, leading to changes in market structure. The adjustment in market structure leads to changes in production and marketing practices, including contracting and pricing strategies for processing firms within the industry. The purpose of this paper is to investigate the current status in the potato processing industry, based on market structure, conduct and performance. The objective is to qualitatively measure the driving forces within the industry, and how these factors influence performance of the industry as a whole. The research method was based on the structure-conduct-performance paradigm, giving a better understanding of the potato processing industry and the driving forces, relating to future growth. A short case study of the Australian potato processing industry, which finds itself in a similar position as South Africa, reveals that increasing global competition in the form of low cost importers, are hampering competitiveness and profitability, along with rising production costs. It was found that the South African potato processing industry has a relatively high concentration, which means efficiency is lacking as market shares is not distributed effectively. It was further evident that a lack of trust between processors and producers is a source of concern for processors.Crop Production/Industries,

STOCHASTIC EFFICIENCY ANALYSIS OF ALTERNATIVE BASIC MAIZE MARKETING STRATEGIES

The use of modern marketing strategies to minimize risk exposure is not a widely adopted practice under maize producers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvested; while the current market requires innovative strategies including the use of Futures and Options as traded on SAFEX. However, due to a lack of interest and knowledge of producers understanding of modern, complicated strategies the study illustrates by using a SERF and CDF that the use of three basic strategies namely a Put-, Twelve-segment-, Three-segment- can be more rewarding. These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. The results obtained from the study illustrates that producers who tend to be more risk neutral would prefer using the Twelve-segment- or Spot-strategy while a risk averse producer would prefer the Three-segment-, or Put-strategy. It also indicates that no strategy can be labelled as the all-time best and that the choice between strategies depends on risk adverse characteristics of the producer. The purpose of the study is to prove that the adoption of a basic strategy is better than adopting no strategy at all and to convince producers to reconsider the adoption of modern marketing strategies.Marketing strategies, futures, options, SERF, Crop Production/Industries, Marketing,

TRY plant trait database – enhanced coverage and open access

Plant traits—the morphological, anatomical, physiological, biochemical and phenological characteristics of plants—determine how plants respond to environmental factors, affect other trophic levels, and influence ecosystem properties and their benefits and detriments to people. Plant trait data thus represent the basis for a vast area of research spanning from evolutionary biology, community and functional ecology, to biodiversity conservation, ecosystem and landscape management, restoration, biogeography and earth system modelling. Since its foundation in 2007, the TRY database of plant traits has grown continuously. It now provides unprecedented data coverage under an open access data policy and is the main plant trait database used by the research community worldwide. Increasingly, the TRY database also supports new frontiers of trait‐based plant research, including the identification of data gaps and the subsequent mobilization or measurement of new data. To support this development, in this article we evaluate the extent of the trait data compiled in TRY and analyse emerging patterns of data coverage and representativeness. Best species coverage is achieved for categorical traits—almost complete coverage for ‘plant growth form’. However, most traits relevant for ecology and vegetation modelling are characterized by continuous intraspecific variation and trait–environmental relationships. These traits have to be measured on individual plants in their respective environment. Despite unprecedented data coverage, we observe a humbling lack of completeness and representativeness of these continuous traits in many aspects. We, therefore, conclude that reducing data gaps and biases in the TRY database remains a key challenge and requires a coordinated approach to data mobilization and trait measurements. This can only be achieved in collaboration with other initiatives

Structure, Conduct and Performance in the South African Potato Processing Industry

The South African Potato industry was deregulated in the early 1990’s, leading to changes in market structure. The adjustment in market structure leads to changes in production and marketing practices, including contracting and pricing strategies for processing firms within the industry. The purpose of this paper is to investigate the current status in the potato processing industry, based on market structure, conduct and performance. The objective is to qualitatively measure the driving forces within the industry, and how these factors influence performance of the industry as a whole. The research method was based on the structure-conduct-performance paradigm, giving a better understanding of the potato processing industry and the driving forces, relating to future growth. A short case study of the Australian potato processing industry, which finds itself in a similar position as South Africa, reveals that increasing global competition in the form of low cost importers, are hampering competitiveness and profitability, along with rising production costs. It was found that the South African potato processing industry has a relatively high concentration, which means efficiency is lacking as market shares is not distributed effectively. It was further evident that a lack of trust between processors and producers is a source of concern for processors

Women Access to Credit: An Empirical Evidence from Eritrea

This paper accesses the availability of credit for women in Eritrea using a probit regression model. A woman as a variable is fitted into the probit model with other variables. The parameters in the model are estimated using the maximum likelihood approach over the ordinary least square because the dependent variable is a binary. For policy implications, the marginal effects of the explanatory variables are also derived. The result shows that gender and adoption of rain water collection technology had the greatest impacts on women access to credit followed by access to extension officer visit and number of children in the household. Women households had less to access credit facility due to collateral and social constraints, especially in the male-dominated agricultural businesses. Without serve as collateral, women are also cut off from access to credit, and without credit, they often cannot buy essential inputs to boost production. The study recommends that, Saving and Micro-credit program (SMCP) in Eritrea doing valuable work in improving women’s access to credit, the government should mobilize resources to coordinate among different stakeholders involved in development programs and the financial institutions to sustained and ensure women’s access to credit

STOCHASTIC EFFICIENCY ANALYSIS OF ALTERNATIVE BASIC MAIZE MARKETING STRATEGIES

The use of modern marketing strategies to minimize risk exposure is not a widely adopted practice under maize producers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvested; while the current market requires innovative strategies including the use of Futures and Options as traded on SAFEX. However, due to a lack of interest and knowledge of producers understanding of modern, complicated strategies the study illustrates by using a SERF and CDF that the use of three basic strategies namely a Put-, Twelve-segment-, Three-segment- can be more rewarding. These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. The results obtained from the study illustrates that producers who tend to be more risk neutral would prefer using the Twelve-segment- or Spot-strategy while a risk averse producer would prefer the Three-segment-, or Put-strategy. It also indicates that no strategy can be labelled as the all-time best and that the choice between strategies depends on risk adverse characteristics of the producer. The purpose of the study is to prove that the adoption of a basic strategy is better than adopting no strategy at all and to convince producers to reconsider the adoption of modern marketing strategies

The impact of maize-based ethanol production on the competitiveness of the South African animal feed industry

Over the past few years the world has witnessed substantial developments in the global production and the production capacity of ethanol. This tremendous growth in the industry is mainly driven by the following: petroleum prices, the reliability of traditional crude oil exporters along with political motives, adverse pollution effects and more specifically, emission gases from fossil fuels. Together with this growth, various researchers locally and globally have focused on ethanol production, but little work has been done on the economic impact that ethanol production will have on the animal feed industry. In order to simulate the results, the two main scenarios were analysed using two different models - namely, the BFAP model and the APR model. By applying the BFAP model to these scenarios, the equilibrium prices of animal feed row materials were simulated for the year 2015. The APR model was then applied to these prices in order to evaluate the impact of ethanol production on the animal feed industry. Two main scenarios are constructed with four combinations; the main variables in the scenarios are the oil price and the blending ratios of biofuel. The results revealed that there is no significant effect on the animal feed industry. Various raw materials are affected, but only by small percentages. The only raw material that shows any significant change is lucerne, with a 20 percent decrease in consumption. The greatest effect is the replacement of imported protein raw materials by DDGS (dried distillers grains with solubles). In terms of the animal feed costs, there was only a 2 per cent decrease with the introduction of ethanol production. Under a scenario of high blending ratios and oil prices, the yellow maize price increases by R169/ton and the soya oilcake price decreases by R347/ton