MARKET REFORM IN THE RED MEAT INDUSTRY

W. F. Lubbe and J. A. Groenewald

Agrekon, 1992, vol. 31, issue 4

Abstract: Failure of controlled marketing and non-attainment of its goals necessitates market reform. It should be based on a holistic approach rather than selective deregulation that may enhance the protection of some groups and the concentrated market structure. Central considerations are motives for, and methods of, market reform. This paper evaluates privatisation and deregulation in the red meat industry and proposes alternatives. The current concentrated and vertically integrated market structure should be considered during the deregulation and the privatisation of ABACOR. A privatised ABACOR should be decoupled from regulatory protection, while appropriate regulation should secure consumer protection and fair business practices. A future role of the Meat Board in a deregulated red meat industry implies the absence of regulatory powers or group representation. Grading and hygiene standards should be decoupled from regulatory restrictions, should not be used to restrict entry into any marketing stage, be voluntary and based on free choice. Forward contracting and a futures market are possibilities in a reformed market, while market information services should be a function of the state. Successful market reform implies the absence of restrictive regulations, the promotion of competition, and performance judgement on the basis of consumer satisfaction.

Keywords: Agricultural and Food Policy; Livestock Production/Industries; Marketing (search for similar items in EconPapers)
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267553

DOI: 10.22004/ag.econ.267553

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