The competitive status of the South African Wheat Industry

Journal of Economic and Financial Sciences

 
 
Field Value
 
Title The competitive status of the South African Wheat Industry
 
Creator van der Merwe, Johannes Cloete, Philippus van Schalkwyk, Herman
 
Subject Wheat industry; competitiveness; competitive advantage; revealed competitive advantage (RCA); relative trade advantage (RTA) index; relative export advantage (RXA); relative import advantage (RMA); market concentration; agriculture; South Africa
Description This article investigates the competitiveness of the South African wheat industry and compares it to its major trade partners. Since 1997, the wheat-to-bread value chain has been characterised by concentration of ownership and regulation. This led to concerns that the local wheat market is losing international competitiveness. The competitive status of the wheat industry, and its sub-sectors, is determined through the estimation of the relative trade advantage (RTA). The results revealed declining competitiveness of local wheat producers. Compared to the major global wheat producers, such as Argentina, Australia, Brazil, Canada, Germany and the USA, South Africa’s unprocessed wheat industry is uncompetitive. At the same time, South Africa has a competitive advantage in semi-processed wheat, especially wheat flour. The institutional environment enables the importation of raw wheat at lower prices and exports processed wheat flour competitively to the rest of Africa.
 
Publisher AOSIS
 
Contributor
Date 2016-12-03
 
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion —
Format application/pdf
Identifier 10.4102/jef.v9i3.63
 
Source Journal of Economic and Financial Sciences; Vol 9, No 3 (2016); 651-666 2312-2803 1995-7076
 
Language eng
 
Relation
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:

https://jefjournal.org.za/index.php/jef/article/view/63/60
 
Rights Copyright (c) 2016 Johannes van der Merwe, Philippus Cloete, Herman van Schalkwyk https://creativecommons.org/licenses/by/4.0
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