Impact of Banana Industry Deregulation on Banana Growers on the East Coast of South Africa

M.E. Kuhn and Adriano Ciani

No 346336, 10th Congress, The University of Reading, UK, July 10-15, 1995 from International Farm Management Association

Abstract: A survey of 28 banana growers on the lower East Coast of South Africa showed that Banana Industry deregulation led to increased price variability and farm financial stress. This made farmers more aware of the need to improve their marketing skills, consider product diversification and improve fruit quality. Discriminant analysis identified respondents who were more likely to be affected by the abolition of the Banana Board as those who (J) previously marketed most of their quality fruit through the Board, (2) were less willing to take production risks, (3) were not sole owners of their farm business, (4) perceived the marketing potential in their local area to be poor and (5) had relatively high debt-asset ratios. After the Board was abolished, most farmers still chose not to market the fruit themselves (relatively high opportunity cost of their management time), but rather used marketing agents. To improve their market bargaining power with the agents, the farmers voluntarily formed a private co-operative, which also provided market information and co-ordinated fruit packing and transport to the market agents.

Keywords: Industrial Organization; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 11
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma95:346336

DOI: 10.22004/ag.econ.346336

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