http://ageconsearch.umn.edu/handle/33932 Search the Channel search http://ageconsearch.umn.edu/simple-search http://ageconsearch.umn.edu/handle/9477 Title: The rate of return on R&D in the South African Sugar Industry, 1925-2001 <br/> <br/>Authors: Nieuwoudt, W.L.; Nieuwoudt, T.W. <br/> <br/>Abstract: The rate of return (ROR) on R&D in the South African Sugar Industry is estimated from a Ridge Regression of a production function of time series data for the period 1925 to 2001. The Industry has kept records on R&D expenditure, yields, rainfall and related factors over a 75-year period. Sugar cane yield was measured in tons sucrose to account for quality improvement. In this function, R&D expenditure lagged three years was significant (t = 6.5) in explaining increased sucrose production per ha. Other highly significant variables in this model were rainfall (t = 5.2) and real cost of production (t = 8.4). A dummy interaction with R&D was significant (t = 2.9) implying a greater impact for R&D technology during the period 1959 to 1975 than either before or after this period. The standardised regression model indicated that the R&D variable was one of the most important variables in explaining yield. Using the elasticity of production estimate for the R&D variable of the un-standardised model, a Benefit/Cost ratio for this variable of 1.41 was estimated, if benefit of millers is excluded and 1.59, if the gain to millers is included. In the latter estimates, the exports realisation price of sugar was used as the appropriate shadow price. A real internal rate of return was estimated at 17%. A unique feature of the South African Sugar Industry is that research is privately funded by the industry, which implies that the distortionary impact of taxes need not be accounted for, as is the case with public funded research. http://ageconsearch.umn.edu/handle/9478 Title: Research management of water economics in agriculture - an open agenda <br/> <br/>Authors: Backeberg, G.R. <br/> <br/>Abstract: It is indeed a privilege and an honour to deliver the FR Tomlinson Commemorative lecture this year. Although the invitation was quite unexpected, it is of course highly appreciated. When Prof Johann Kirsten phoned me with the request, I was initially not sure what topic I should address. The topic, which I have now formulated, is one which has fascinated me and certainly kept me busy for the most part of my career. I want to share with you some thoughts and perspectives, but will steer away from a laborious review or an abstract analysis. In doing so, I trust that this is appropriate within the spirit of the occasion, which is now a well established tradition in the Agricultural Economics Association of South Africa (AEASA). Let me start with a quotation which is at the core of the theme I want to unfold in this lecture. “Our most important resource is not land, nor capital and even less the climate. Our most important resource is not the gold under the earth’s crust, or the oil that might be there. Our most important resource is our human material. We must develop our human material and make full use of it.” (Groenewald JA, 1973a) http://ageconsearch.umn.edu/handle/9479 Title: The impact of the WTO agricultural negotiating modalities on Southern African Development Community countries <br/> <br/>Authors: Poonyth, D.; Sharma, R.; Konandreas, P. <br/> <br/>Abstract: This paper assesses the likely impact on the agricultural sector of the Southern African Development Community (SADC) countries of the Harbinson modalities, along with the EU and US proposals as alternative scenarios in the context of the ongoing negotiations of the WTO Agreement on Agriculture. Impacts are assessed on a number of indicators, notably government revenue, producer, consumer and total welfare measures and trade flow. Reflecting country- and commodity-specific factors, the three modalities have different impacts on the indicators. The SADC as a whole is found to lose in terms of total welfare under all three proposals. But while this loss under the Harbinson and EU proposals is due to declines in consumer surpluses and government revenues, reduced producer surplus and government revenue explain the loss in total welfare under the US proposal. Thus, the ranking of the modalities differs according to the impact indicator used, revealing important trade-offs in the choice of the modalities. An issue raised is the value of consumer gains relative to producer gains for low-income economies highly dependent on agriculture because for them effective demand for consumption itself depends on incomes generated from increased agricultural activities, which in turn requires sustained gains in producer surpluses. The paper presents a range of results and discusses the trade-offs, with the hope that SADC trade negotiators and policy makers find these to be useful as they negotiate for the final form of the modalities. http://ageconsearch.umn.edu/handle/9480 Title: An evaluation of the environmental care orientation of deciduous fruit producers in the Western Cape <br/> <br/>Authors: van Dijk, T.; Kleynhans, T.E. <br/> <br/>Abstract: A classification system developed to evaluate the environmental care orientation of companies and, more specifically, their strategies to deal with the environmental care requirements presrcibed by the market was applied to the deciduous fruit sector in the Western Cape. A survey was done to determine the attitude towards and status of, environmental care activities amongst deciduous fruit producers who have already obtained Eurepgap certification or who are busy preparing for the certification audit. A questionnaire was used and the responses were judged in terms of the guidelines of the classification system. The nature of the typical South African – European deciduous fruit export supply chain is that South African producers desire to supply the retail market at higher prices than that of the wholesale market. The producers are then confronted with the stringent environmental care requirements of the retail chains, who use the environmental care product image aggressively as a selling point in the retail market, acting like typical Class III market oriented institutions. The classification shows that the majority of producers try to comply with these requirements with minimum effort (Class I). The more progressive producers accept them as good agricultural practices to increase their production efficienc. (Class II). Some farmers participate in a comprehensive Integrated Crop Management (ICM) system to establish a culture of environmental care at farm level in a more efficient way. ICM implementation also helps to prepare proactively for possible changes in the environmental care requirements of individual retail chains. This seems to be the more effective strategy for the primary producer. http://ageconsearch.umn.edu/handle/9481 Title: Substitution of fertiliser with poultry manure: Is this economically viable? <br/> <br/>Authors: Mkhabela, T.S. <br/> <br/>Abstract: Rapid expansion of the KwaZulu-Natal poultry industry has resulted in poultry manure and litter production that in certain areas exceeds the potential for use in crop production. If land application exceeds crop requirements, manure production may result in environmental damage. In this study, potential manure surpluses in intensive poultry producing KwaZulu-Natal areas were quantified. The costs of transferring such surpluses to manure-deficient areas were compared with the economic value of poultry manure as fertiliser. Estimates of potential arable land and pasture for spreading manure took both dairy and feedlot manure production into account. Use of manure surpluses by transfer was found to be economically viable. Public policy actions are needed, however, to promote such transfer. http://ageconsearch.umn.edu/handle/9482 Title: Are wine co-operatives creating value? <br/> <br/>Authors: Hall, J.H.; Geyser, J.M. <br/> <br/>Abstract: This article examines the introduction of Economic Value Added (EVA) as a performance measure that South African wine co-operatives can use to determine whether value has been created for members. A detailed explanation of EVA is given, and the components of EVA are calculated. The EVA’s of a number of co-operatives have been calculated and analysed. Important trends have been identified. Recommendations have been made based on the conclusions drawn from these results. Finally, opportunities for potential improvement that could arise from using EVA as a performance measure in wine co-operatives are discussed. http://ageconsearch.umn.edu/handle/9483 Title: Optimering van wisselboustelsels <br/> <br/>Authors: Visagie, S.E. <br/> <br/>Abstract: Different types of crops are planted in winter grain regions. These crops can be planted in even more combinations. Crops that are planted on the same land in successive years do influence one another. In this situation the problem of which sequence of crops to plant arises. If appropriate assumptions are made, this problem can be solved with linear programming (LP). The complexity of this problem, however, increases dramatically with an increase in the number of crops as well as the number of years considered. Another problem with this formulation is how to choose the boundary conditions. Furthermore the solution to this problem is degenerate. In practice it is found that farmers prefer a cycle of crops in a rotary crop system, because it simplifies the management of the system. If the assumption is made that a farmer uses a cycle of at most three years, the problem of the boundary conditions is solved. If the dual formulation of this problem is considered it is evident that the problem has a specific structure. The structure of the problem as well as the fact that the solution to the problem is highly degenerate can be exploited to simplify the solution of the problem substantially. If the correct selection of solutions from this degenerate dual problem is chosen this selection can be used to formulate a simplified model in terms of strategies for the farmer. If the problem is formulated in terms of these strategies, the problem is further reduced to an LP with one constraint (the knapsack problem), which makes it possible to solve this problem by hand for a relative large number of crops in the rotary crop system. These strategies can also be used to solve a more generalised problem. Consider nature to be a player in Game Theory. The strategies of nature can be defined in many ways. The amount of rain per annum, for example, could be strategies used by nature to play a game against the farmer. The farmer in return can then use his strategies and the knowledge of Game Theory to maximise his profit. The problem can be generalised further if it is formulated in terms of Game Theory. In this generalisation the Game Theory model is expanded to incorporate a number of different situations with the use of extra constraints. The first of these situations is to incorporate other enterprises with the rotary crop system. The farmer could, for instance want the solution to contain at least a certain amount of feed for his cattle. The second situation is when the farmer has knowledge of the weather patterns, which implies for the Game Theory model that the farmer has knowledge of his opponent’s strategies. Both these situations are incorporated in the model. Finally, a case study is presented in which the use of the model is demonstrated. Relevant data from the Swartland region are used. A dry year, an average year and a wet year were used as strategies for nature. The solutions drawn from these data were confirmed with a farmer from the region, who agreed that the solutions appear to be reasonable if it is compared to what is found in practice. The most frequently chosen strategies were the ones that contain wheat and clover. The solutions indicate that a farmer should plant less clover and more grain if it is a dry year, whilst it is better to increase the amount of clover planted if the rainfall is higher.