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An economic assessment of the implications of changes in wheat quality standards in South Africa

Dissertation (MSc (Agric))--University of Pretoria, 2018.

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Other Authors: Liebenberg, Frikkie
Format: Thesis
Language:English
Published: University of Pretoria 2018
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access_status_str Open Access
author2 Liebenberg, Frikkie
author_browse Liebenberg, Frikkie
author_facet Liebenberg, Frikkie
collection Thesis
dc_rights_str_mv © 2018 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.
description Dissertation (MSc (Agric))--University of Pretoria, 2018.
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institution University of Pretoria (South Africa)
language English
last_indexed 2026-06-10T12:37:24.815Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2018
publishDateRange 2018
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publisher University of Pretoria
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spelling oai:repository.up.ac.za:2263/65924 An economic assessment of the implications of changes in wheat quality standards in South Africa Liebenberg, Frikkie ZWIAFHELA.JACK@GMAIL.COM Machethe, Charles Lepepeule Naledzani, Zwiafhela UCTD Dissertation (MSc (Agric))--University of Pretoria, 2018. South Africa has been a net importer of wheat for the past two decades. Due to the inverse relationship between quality and yields, it has been argued that the pursuit of the high wheat quality standards as set by government has led to greater financial loss, rather than financial gain. Various stakeholders in the wheat value chain are said to lose more than they gain from the high quality standards that are required to be maintained. Given the industry claims of the required wheat quality standards being too high, the aim of the study is to evaluate the economic implications of government intervention in the wheat industry through their enforcement of quality standards. The specific objectives of this study have become the determination of historic output changes of bread-baking wheat and non-bread-baking wheat in the South African wheat industry, and to determine the returns from the current government-required wheat quality standards. The Fisher Divisia index method was used to determine the historic output changes of bread-baking wheat and non-bread-baking wheat in the South African wheat industry. It was found that the output of both non-bread-baking and bread-baking wheat quality had a declining rate. However, the output of wheat of bread-baking quality was declining at a faster rate than that of wheat of non-bread-baking quality. To determine the returns from the current wheat quality standards, econometric modelling was used along with a benefit-cost analysis. It was found that the application of quality standards as set in the Agricultural Product Standards Act No. 119 of 1990 (APS) has led to an average total cost of R45.6 million and associated benefits of R28.2 million between 1999 and 2014. This has resulted in a benefit-cost ratio of 0.62. This implies that for every Rand invested in public breeding for quality improvement, 38 cents has been lost. This further suggests that for any amount invested in breeding solely for the purposes of quality improvement, a significant amount has not been recovered. There are therefore cogent reasons to consider reforming the Agricultural Product Standards Act. Agricultural Economics, Extension and Rural Development MSc (Agric) Unrestricted 2018-07-25T09:00:57Z 2018-07-25T09:00:57Z 2018/04/19 2018 Dissertation Naledzani, Z 2018, An economic assessment of the implications of changes in wheat quality standards in South Africa, MSc (Agric) Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/65924> A2018 http://hdl.handle.net/2263/65924 en © 2018 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria
spellingShingle UCTD
An economic assessment of the implications of changes in wheat quality standards in South Africa
title An economic assessment of the implications of changes in wheat quality standards in South Africa
title_full An economic assessment of the implications of changes in wheat quality standards in South Africa
title_fullStr An economic assessment of the implications of changes in wheat quality standards in South Africa
title_full_unstemmed An economic assessment of the implications of changes in wheat quality standards in South Africa
title_short An economic assessment of the implications of changes in wheat quality standards in South Africa
title_sort economic assessment of the implications of changes in wheat quality standards in south africa
topic UCTD
url http://hdl.handle.net/2263/65924