Modeling and Forecasting of Production an Agricultural Product

Background: The economic performance of any sector is measured by the level of its competitiveness against its competitors. The South African sugar industry, as a member of the Tripartite Free Trade Area (TFTA), faces stiff competition and is therefore challenged to improve its production and export performance to survive and dominate in the market in the long term. Aim: This study aimed to assess the competitiveness of the South African sugarcane industry by looking at the economic drivers of sugar production and export. Methods: The study employed Michael Porter`s Diamond Model to assess the competitiveness of the South African sugarcane industry, using primary data collected from a total of 123 sugarcane farmers and 100 key stakeholders. A 7-point Likert scale was applied to indicate the degree to which each of the determining factors is perceived to affect the performance and resulting competitiveness of the sugar industry. Results: The findings revealed that the major constraints experienced by respondents are the availability of skilled labour; cost of doing business; level of infrastructure development; cost of infrastructure; water availability; climatic conditions; rainfall patterns; availability of financial services; access to credit; crime; and HIV/AIDS. In terms of exports, tariffs were found to be the major constraint along with some of the aforementioned factors. Several factors that are experienced as having a positive effect on competitive success also emerged. These include product design; packaging; labelling and pricing; manager’s willingness to export; level of education and training; length of time in the business; experience; and language.

Section: Introductionmentioning

confidence: 99%

Economic Drivers of Sugar Production and Export Performance: The Case of South Africa Within the Tripartite Free Trade Area

Mamashila

2024

The Analysis of Willingness to Accept and Willingness to Pay of Farmers and Consumers on Organic Horticultural Commodities Through Android Application-Based Digital Marketplace

Prajanti,

Lestari,

Primayesa

2023

Purpose: This study aims to analyze farmers' and consumers' willingness to accept and willingness to pay for organic horticultural commodities through an Android application-based digital marketplace. Theoretical Framework: Parameters in the economic assessment of natural resources and the environment involve how much individuals are willing to pay (WTP) and receive (WTA) Economic valuation methods for natural resources and the environment can be grouped into two types, namely the revealed preference approach and the stated preference approach The implied preference approach includes several techniques, such as the Travel Cost Method, Hedonic Pricing Method, and Averting Cost. On the other hand, the techniques included in the expressed preference approach involve the Contingent Valuation Method (CVM) and Conjoint Analysis. Method: This study was conducted in Semarang and Magelang Regencies, Central Java Province. The number of samples interviewed was 110 respondents spread across the two districts. The number of samples in each district was 55 respondents of producer farmers who are accustomed to growing organic horticulture and at the same time as consumers of organic horticulture. The analysis of users’ WTP and WTA of organic horticulture offered to the respondents. Results: The estimated Result of WTP Parameters of the characteristics of the product offered is one of the factors which can affect consumer willingness to pay (WTP). Consumer backgrounds such as income, number of family members, and education can also affect consumers' WTP of a product. In general, the determining factor for consumers’ WTP to be willing to pay more for organic horticulture through a digital marketplace compared to conventional horticulture is better quality. Conclusions: Consumer preference for organic horticulture is positive because the quality and taste are better than horticulture that has been planted before. Organic horticulture has the opportunity to create a market due to the positive response of producers and consumers as indicated by the WTA and WTP.

Socioeconomic Characteristics of Small-Scale Livestock Farmers on access to High-Value Livestock Markets in the Greater Giyani Local Municipality, Limpopo Province, South Africa

Tyrone,

Khazamula,

John

2024

Purpose: This study aimed to determine the socioeconomic characteristics of small-scale farmers that have an impact on their access to high-value livestock markets in Greater Giyani Local Municipality (GGLM) and make recommendations for improving their access. Theoretical reference: Many studie conducted indicate that high-value livestock market access by small-scale farmers requires a Consideration of global trends in the economic transformation that have a direct bearing on the current small-scale market access situation from a holistic standpoint, which is influenced by the socioeconomic status of livestock farmers. Method: The study adopted a quantitative research approach and employed clustered proportional random sampling. Two hundred and fifteen (215) Greater Giyani Local Municipality livestock small-scale farmers were randomly selected. Results and conclusion: The study revealed that the majority of the small-scale livestock farmers in the GGLM were male (62.8%) and elderly people (above 65 years) (45.1%). The study further revealed that the majority (67.9%) of the livestock farmers in the GGLM had no formal education. Youth participation in livestock farming was disappointing (12.1%). Inferential statistical analysis revealed that young adults and elderly small-scale livestock farmers were all significant and had a direct influence on access to high-value markets. Farmers will be encouraged to enrol on an adult learning center and youth will be encouranged to participate in livestock farming. Research implication: Based on the results of previous research, fewer youth are usually participating in farming when compared with older farmers. Originality/value: The study revealed that socioeconomic characteristics play a vital role on access to high-value livestock markets. However previous study has not covered much on the role of socioeconomic status.