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This paper reports the results of an international comparison of the cost of producing wheat in 8 Western Cape, 3 Free State and 7 foreign producing areas. Results show that South African yields are low compared to foreign countries whose production costs are as high as or higher than those in South Africa, while the net margins for South African producers are less than a third of those for countries that have the same or lower yields as South Africa. If the wheat industry in the Western Cape is to survive international competition, it will have to create its international competitiveness.


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