Impediments to Competitiveness of Small and Medium-Scale Maize Milling Enterprises in South Africa

The maize milling industry is highly characterised by continuous growth in maize milling and retailing margins in real terms (Traub and Jayne, 2004) despite the benefits and opportunities brought about by the deregulation of the South African maize market in 1997. This may be indicative of the inability of small and medium-scale maize milling enterprises (SMSMMEs) to emerge and compete with large-scale maize millers. This paper examines the constraints faced by SMSMMEs in South Africa. Data were collected with the aid of a structured questionnaire. Millers were asked to identify the various challenges facing their enterprises. Some key constraints identified were; high transport costs, high maize prices, brand name establishment and government policies such as the compulsory maize meal fortification regulation and high taxes. Other perceived constraints included lack of adequate infrastructure, storage facilities, access to credit and seasonality of maize grain.

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The Role of Agriculture in Poverty Reduction: Recent Experiences from Africa.

 Record created 2017-04-01, last modified 2020-10-28

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