http://ageconsearch.umn.edu/handle/34002 Search the Channel search http://ageconsearch.umn.edu/simple-search http://ageconsearch.umn.edu/handle/10127 Title: Quantifying the Trade Effect of Sanitary and Phytosanitary Regulations of OECD Countries on South African Food Exports <br/> <br/>Authors: Gebrehiwet, Y.; Ngqangweni, S.; Kirsten, J.F. <br/> <br/>Abstract: Stringent sanitary and phytosanitary standards (SPS) have proliferated in the aftermath of the Uruguay Round Agreement on Agriculture (URAA). These standards are currently becoming a major stumbling block in agricultural trade for developing countries. Limited by inadequate resources and expertise, among other things, these countries also have poor participation rate in discussions related to SPS that impedes the representation of their interests and concerns in setting international standards for agricultural products. Using a gravity model, this paper estimates the trade effect of total aflatoxin level set by five OECD countries (Ireland, Italy, Sweden, Germany and USA), on South African food exports. The findings support the hypotheses that stringent SPS standards are limiting trade markedly. The trade elasticity of aflatoxin standard is 0.41 and statistically significant. Moreover, the simulation result based on the assumption that these five OECD countries adopt the total aflatoxin level recommended by CODEX, shows that South Africa would have gained an estimated additional amount of US$ 69 million per year from food exports to these countries from 1995 to 1999. Mon, 26 Feb 2007 22:58:59 GMT http://ageconsearch.umn.edu/handle/10128 Title: Exploring the Economic Rationale for Protecting Geographical Indicators in Agriculture <br/> <br/>Authors: Bramley, C.; Kirsten, J.F. <br/> <br/>Abstract: The misappropriation of the names of geographical regions such as Parma, Roquefort and Champagne is protected in the European Union by a system of Geographical Indications, and is acknowledged by the World Trade Organization as an important intellectual property right. This article addresses whether there is a case for similar protection in South Africa. The article explores the economic rationale for implementing a system of Geographical Indications by addressing issues such as information asymmetry and the role of reputation; formation of niche markets; monopoly formation, value added and rural development. The economic rationale for protecting Geographical Indications derives mainly from the fact that place of origin may be used as a quality signal, or alternatively, that the resources of the region may be captured as quality attributes. In the first instance the meaning of the geographical name is emphasized in order to reduce information asymmetries. Where place of origin is used as an attribute, resources of the region are used to increase the value of the product. This includes specific resources such as production techniques, varieties and species, but also resources that are general to the region such as landscape, environment and culture. Economic arguments present a strong justification for the introduction of geographical indications in South Africa. At the same time it will afford greater protection to indigenous resources and geographical names which could, through the collective and inclusive nature of the system, directly contribute to rural development. Mon, 26 Feb 2007 22:58:59 GMT http://ageconsearch.umn.edu/handle/10129 Title: Agricultural Cooperatives I: History, Theory and Problems <br/> <br/>Authors: Ortmann, G.F.; King, R.P. <br/> <br/>Abstract: This paper presents the principles of cooperation and briefly describes the history and development of agricultural cooperatives in developed and less-developed countries, with particular emphasis on South Africa. A new Cooperatives Act, based on international principles of cooperation, was promulgated in South Africa in August 2005. The theory of cooperatives, and new institutional economics theory (NIE) (including transaction cost economics, agency theory and property rights theory) and its applicability to the cooperative organizational form, are also presented, as are the inherent problems of conventional cooperatives, namely free-rider, horizon, portfolio, control and influence cost problems caused by vaguely defined property rights. An analysis of the future of cooperatives in general, based on a NIE approach, suggests a life cycle for cooperatives (formation, growth, reorganization or exit) as they adapt to a changing economic environment characterized by technological change, industrialization of agriculture and growing individualism. Mon, 26 Feb 2007 22:58:59 GMT http://ageconsearch.umn.edu/handle/10130 Title: Domestic Water Use and Values in Swaziland: A Contingent Valuation Analysis <br/> <br/>Authors: Farolfi, S.; Mabugu, R.E.; Ntshingila, S.N. <br/> <br/>Abstract: The paper reports on the use of the contingent valuation method to study the determinants of Swazi households’ willingness to pay (WTP) for an improvement in their water quantity and quality. A sample of 374 households was surveyed and a Tobit model was applied to explain household preferences for quality and quantity of domestic water supply and derive estimates of WTP for such a service. The results confirm that household income had a positive and statistically significant impact on WTP for both quality and quantity. Distance to the water source is positively associated with WTP regardless of the location (rural or urban) and of the household head’s age, education, and gender. Current water consumption was also statistically significant for WTP for improved quantity, but with a negative sign, implying that the more a household consumes water, the less that household is WTP to have improved water quantity. Conversely, the same household would be WTP for improved water quality. Rural households showed a much higher WTP for improved water provision services than urban households. There is therefore scope to improve water service levels in Swaziland even at a higher water price. More precisely, the estimates of WTP obtained in this study indicate the possibility of introducing a demand-driven program to expand the coverage of rural tap water schemes. Mon, 26 Feb 2007 22:58:59 GMT http://ageconsearch.umn.edu/handle/10131 Title: Impact of the Sectoral Determination for Farm Workers on the South African Sugar Industry: Case Study of the KwaZulu-Natal North and South Coasts <br/> <br/>Authors: Murray, J.; van Walbeek, C. <br/> <br/>Abstract: A survey of 103 sugarcane farmers on the KwaZulu-Natal coast was conducted in order to analyse the impact of the Sectoral Determination for Farm Workers (2002) on South African agriculture. The sample was separated into a high wage paying North Coast and lower wage paying South Coast. Typically farmers were unable to distinguish between the impact of the Sectoral Determination and other labour laws. Results indicate that the impact of the legislation is similar in each region. No respondents reported mass retrenchment, but job shedding is disguised by not replacing workers (especially unskilled workers) that leave the farm. A sizeable number of growers (17 per cent on the South Coast and 44 per cent on the North Coast) have reduced the working week to 27 hours (or 36 hours in the Felixton Mill Group Area) enabling them to pay wages on an hourly, rather than a weekly basis. This strategy reduces the effective wage. About 40 per cent of growers have reduced the in-kind benefits to their workers. About half of respondents indicated that they are likely to increase their use of seasonal and contract labour in future. Although a majority of respondents indicated that they considered mechanisation of the harvesting process, cost and topographical factors currently does not make this a serious alternative to manual harvesting. However, because of increased wage costs and the relatively strong currency in recent years, chemical weed control has become an attractive alternative to manual weed control. Mon, 26 Feb 2007 22:58:59 GMT http://ageconsearch.umn.edu/handle/10132 Title: A Conceptual Analysis of Relational Contracts in Agribusiness Supply Chains: The Case of the Sugar Industry in Swaziland <br/> <br/>Authors: Masuku, M.; Kirsten, J.F.; Owen, R. <br/> <br/>Abstract: This study examines the nature of the relationship between cane growers and millers and how it affects cane growers’ perceptions of the value added in the sugar supply chain. Drawing from relational exchange theory, the study utilised the perceptions of 124 smallholder cane growers in the Swaziland sugar industry. Factors measured in terms of a likert type scale were used to measure each relational construct within the miller-grower contract relationship. The unpacks the trust relationship between large agribusiness companies and smallholder out growers, and shows that relationships characterised by social factors like trust, commitment, and cooperation enhance mutual benefit and quality relationships between parties. This study found that farmers perceive an element of opportunistic behaviour and a lack of cooperation by millers and therefore have limited trust in the millers. Consequently it was also found that satisfaction by cane growers on their relationship with millers has a positive relationship with their level of trust, level of commitment, relative dependence, perception of opportunistic behaviour by millers and perceived cooperation between themselves and the millers. The results point to a number of aspects both growers and millers need to attend to which could contribute to improved relationship and in turn efficiency and returns in the sugar industry in Swaziland. Mon, 26 Feb 2007 22:58:59 GMT http://ageconsearch.umn.edu/handle/10133 Title: Direct-use Values of Non-Timber Forest Products from Two Areas on the Transkei Wild Coast <br/> <br/>Authors: Shackleton, C.M.; Timmermans, H.G.; Nongwe, N.; Hamer, N.; Palmer, N.; Palmer, R. <br/> <br/>Abstract: It is now widely appreciated internationally that rural communities make extensive use of wild resources, and that this use has significant direct use value. The number of case studies in South Africa that have valued the use of such resources are small, albeit growing. Yet none of them have been from coastal sites, which would include use of marine resources, nor have previous studies included the non-biological resources of sand and clay for building purposes. This paper addresses this gap, through examination of the role and value of wild resources in rural livelihoods of households in the Ntubeni and Cwebe areas of the Transkei Wild Coast in the Eastern Cape. Households used a wide range of resources collected from the surrounding communal lands and the Dwesa Cwebe Nature Reserve. Major differences between the sites were the widespread use of bushmeat, shellfish and building sand at Ntubeni compared with relatively small use of these three resources at Cwebe. These differences resulted in a markedly higher, gross, annual, direct-use value at Ntubeni than at Cwebe. The gross, annual, direct-use value averaged across all resources (excluding medicinal plants) and all households (user and non-users) was over R12 000 at Ntubeni, compared to R4 858 at Cwebe. At Ntubeni over half of the total annual direct-use value was contributed by fish and shellfish, indicating the need for more studies in coastal areas. A similar pattern was not evident at Cwebe, because residents did not have access to a rocky shoreline outside of the marine reserve. Local trade was highly variable, both between resources and between households. Averaging the value of trade across all households (i.e. traders and non-traders), gave a total gross, annual value of R1 660 and R600 at Ntubeni and Cwebe, respectively. Mon, 26 Feb 2007 22:58:59 GMT http://ageconsearch.umn.edu/handle/10134 Title: Tariff and Tariff Rate Quota Liberalization in the South African Livestock Industry: Approaches to Welfare Measurement <br/> <br/>Authors: Oyewumi, O.A.; Jooste, A.; Britz, W.; van Schalkwyk, H.D. <br/> <br/>Abstract: The liberalization of the agricultural sector and phasing out of past protection mechanisms in South Africa saw the introduction of a process of tariff reform. Furthermore, a system of tariff rate quotas was introduced in compliance with WTO regulations. This study uses a partial equilibrium comparative static model to measure the welfare effects of further liberalization in the livestock industry of South Africa, particularly in meat products using four policy scenarios. The traditional method of welfare analyses using the CS and PS was applied, while the EV was used to integrate a well-behaved objective function. Although the CS and PS could have over-estimated welfare due to the fact that the demand system used in this study is non-linear, they still gave useful information sufficient to compare the impact of trade liberalization on consumers and producers of livestock products. Furthermore, the EV explains the income change necessary to attain the welfare level resulting from trade liberalization given the current prices. When expressed as a percentage of the real gross national income and real disposable income, the values are quite marginal. The results from both methods of welfare measurement suggest that it is worth considering the effects on producers if further trade liberalization is envisaged in the South African livestock industry. Mon, 26 Feb 2007 22:58:59 GMT