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The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model

Thesis (MScAgric)--Stellenbosch University, 2024.

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Main Author: Tyelo, Mkhanyisi
Other Authors: Punt, Cecilia
Format: Thesis
Language:en_ZA
Published: Stellenbosch : Stellenbosch University 2024
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access_status_str Open Access
author Tyelo, Mkhanyisi
author2 Punt, Cecilia
author_browse Punt, Cecilia
Tyelo, Mkhanyisi
author_facet Punt, Cecilia
Tyelo, Mkhanyisi
author_sort Tyelo, Mkhanyisi
collection Thesis
dc_rights_str_mv Stellenbosch University
description Thesis (MScAgric)--Stellenbosch University, 2024.
format Thesis
id oai:scholar.sun.ac.za:10019.1/130834
institution Stellenbosch University (South Africa)
language en_ZA
last_indexed 2026-06-10T12:46:28.519Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository
publishDate 2024
publishDateRange 2024
publishDateSort 2024
publisher Stellenbosch : Stellenbosch University
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spelling oai:scholar.sun.ac.za:10019.1/130834 The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model Tyelo, Mkhanyisi Punt, Cecilia Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics. Livestock -- Economic aspects -- South Africa Agricultural productivity -- South Africa Agriculture -- Economic aspects -- South Africa Animal breeding -- South Africa Agricultural policy -- South Africa UCTD Thesis (MScAgric)--Stellenbosch University, 2024. ENGLISH SUMMARY: Livestock-related activities have an important role in developing countries, impacting various facets such as the economy, public health, and the environment. In the context of South Africa, the red meat subsector is of particular significance due to its substantial contribution to the agriculture sector and its multifaceted role in sustaining rural livelihoods. However, many challenges impede the sector from reaching its full potential. Disparities in productivity levels between informal and commercial livestock producers, coupled with institutional inefficiencies, result in, among other things, a suboptimal share of exports in local production. This poses a hindrance to maximising the sector's contributions to the economy. Most importantly, the lack of empirical analysis on the economic impact of the livestock sector, considering its linkages, contributes to the underestimation of its overall contribution to the economy. Thus, within the context of the Red Meat Industry Strategy 2030 objective to ensure the improved contribution of the sector to the economy, the study employed a dynamic general equilibrium model to assess the economy-wide impacts of the improved red meat sector. The model simulated improvements in the red meat sector, focused on enhanced export access, increased productivity, and increased availability of technically skilled labour. Results suggest that boosting productivity in the red meat sector will lead to improved production but limited growth in the share of production for exports. However, improvements in the overall economy will be observed due to the enhanced performance of tertiary sectors, particularly the services sector. The strategy to prioritise the expansion of exports in the red meat sector will lead to improved production and export growth but also result in increased imports. This is particularly concerning for primary producers in South Africa, given the current surge in live animal imports, posing a significant threat to the industry's sustainability. Furthermore, this approach is expected to contribute to slow overall economic growth, partly due to the export of unprocessed live animals. Policies aimed at improving education for the availability of technically skilled labour are crucial for the broader economic expansion. However, they may not alone be adequate for the expansion of the red meat sector. Based on these findings, the recommended approach advocates integrating export promotion and productivity enhancement strategies within the red meat sector. This will involve implementing targeted policy initiatives to improve breeds and make them more accessible to the entire red meat sector, strengthening disease control measures, upholding food safety standards, and establishing favourable trade policies. Simultaneously, this will necessitate policy initiatives to encourage inclusive participation in the agro-processing sector due to its positive spin-offs, such as increased incomes, improved food availability, and enhanced employment opportunities. The proposed approach thus emphasises a comprehensive strategy that addresses both production and processing aspects to foster sustainable growth and positive socio-economic impacts within the red meat industry. Finally, endeavours to improve the red meat sector should be accompanied by strategies that promote the growth of related sectors, ensuring backward and forward linkages. This includes prioritising strategies to sustain a reliable input and service base for livestock activities. This approach will establish a resilient and interconnected ecosystem that goes beyond supporting the red meat sector alone, extending its benefits to associated industries. AFRIKAANSE OPSOMMING: Lewendehawe verwante aktiwiteite speel 'n belangrike rol in ontwikkelende lande, wat verskeie fasette soos die ekonomie, openbare gesondheid en die omgewing beinvloed. In die konteks van Suid-Afrika is die rooivleis-subsektor van besondere belang vanwee sy aansienlike bydrae tot die landbousektor en sy veelvlakkige rol in die handhawing van landelike lewensbestaan. Baie uitdagings verhinder egter die sektor om sy volle potensiaal te bereik. Ongelykhede in produktiwiteitsvlakke tussen informele en kommersiele lewendehawe produsente, tesame met institusionele ondoeltreffendheid, lei onder meer tot 'n suboptimale aandeel van uitvoere in plaaslike produksie. Dit veroorsaak ’n struikelblok om die sektor se bydraes tot die ekonomie te maksimeer. Belangriker nog, die gebrek aan empiriese ontleding oor die ekonomiese impak van die veesektor, in ag genome sy skakels, dra by tot die onderskatting van sy algehele bydrae tot die ekonomie. Dus, binne die konteks van die Rooivleisbedryfstrategie 2030-doelwit om die verbeterde bydrae van die sektor tot die ekonomie te verseker, het die studie 'n dinamiese algemene ewewigsmodel gebruik om die ekonomiewye impakte van die verbeterde rooivleissektor te evalueer. Die model het verbeterings in die rooivleissektor gesimuleer, gefokus op verbeterde uitvoertoegang, verhoogde produktiwiteit en verhoogde beskikbaarheid van tegnies geskoolde arbeid. Resultate dui daarop dat die bevordering van produktiwiteit in die rooivleissektor tot verbeterde produksie, maar beperkte groei in die aandeel van produksie vir uitvoer, sal lei. Verbeterings in die algehele ekonomie sal egter waargeneem word as gevolg van die verbeterde prestasie van tersiere sektore, veral die dienstesektor. Die strategie om die uitbreiding van uitvoere in die rooivleissektor te prioritiseer, sal lei tot verbeterde produksie en uitvoere, maar ook verhoogde invoer tot gevolg he. Dit is veral kommerwekkend vir primere produsente in Suid-Afrika, gegewe die huidige toename in die invoer van lewende diere, wat 'n wesenlike bedreiging vir die bedryf se volhoubaarheid inhou. Verder word verwag dat hierdie benadering sal bydra tot stadige algehele ekonomiese groei, deels as gevolg van die uitvoer van onverwerkte lewende diere. Beleide wat daarop gemik is om onderwys te verbeter vir die beskikbaarheid van tegnies geskoolde arbeid is deurslaggewend vir die breer ekonomiese uitbreiding. Hulle is egter dalk nie alleen voldoende vir die uitbreiding van die rooivleissektor nie. Gebaseer op hierdie bevindinge, is die aanbevole benadering die integrasie van uitvoerbevordering en produktiwiteitsverbeteringstrategiee binne die rooivleissektor. Dit sal die implementering van geteikende beleidsinisiatiewe behels om rasse te verbeter en meer toeganklik vir die hele rooivleissektor te maak, die versterking van siektebeheermaatreels, die handhawing van voedselveiligheidstandaarde en die daarstelling van gunstige handelsbeleide. Terselfdertyd sal dit beleidsinisiatiewe noodsaak om inklusiewe deelname aan die landbouverwerkingsektor aan te moedig as gevolg van die positiewe newe-effekte daarvan, soos verhoogde inkomste, verbeterde voedselbeskikbaarheid en verbeterde werksgeleenthede. Die voorgestelde benadering beklemtoon dus 'n omvattende strategie wat beide produksie- en verwerkingsaspekte aanspreek om volhoubare groei en positiewe sosio-ekonomiese impak binne die rooivleisbedryf te bevorder. Laastens, pogings om die rooivleissektor te verbeter, moet gepaard gaan met strategiee wat die groei van verwante sektore bevorder, wat rugwaartse en voorwaartse skakels verseker. Dit sluit in die prioritisering van strategiee om 'n betroubare inset- en diensbasis vir lewendehawe-aktiwiteite te handhaaf. Hierdie benadering sal 'n veerkragtige en onderling gekoppelde ekosisteem daarstel wat verder strek as die ondersteuning van die rooivleissektor alleen, en die voordele daarvan na verwante industriee uitbrei. Masters 2024-03-04T09:52:35Z 2024-05-08T12:19:53Z 2024-03-04T09:52:35Z 2024-05-08T12:19:53Z 2024-03 Thesis https://scholar.sun.ac.za/handle/10019.1/130834 en_ZA Stellenbosch University xiv, 130 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University
spellingShingle Livestock -- Economic aspects -- South Africa
Agricultural productivity -- South Africa
Agriculture -- Economic aspects -- South Africa
Animal breeding -- South Africa
Agricultural policy -- South Africa
UCTD
Tyelo, Mkhanyisi
The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model
title The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model
title_full The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model
title_fullStr The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model
title_full_unstemmed The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model
title_short The impact of livestock improvement on the South African economy : a policy analysis using a dynamic computable general equilibrium model
title_sort impact of livestock improvement on the south african economy a policy analysis using a dynamic computable general equilibrium model
topic Livestock -- Economic aspects -- South Africa
Agricultural productivity -- South Africa
Agriculture -- Economic aspects -- South Africa
Animal breeding -- South Africa
Agricultural policy -- South Africa
UCTD
url https://scholar.sun.ac.za/handle/10019.1/130834
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