ENTREPRENEURSHIP AND THE BOTTOM LINE: HOW MUCH OF AGRICULTURE'S PROFITS IS DUE TO CHANGES IN PRICE, HOW MUCH TO PRODUCTIVITY?

J. van Zyl, H. D. van Schalkwyk and C. Thirtle

Agrekon, 1993, vol. 32, issue 4

Abstract: Conventional financial analysis shows that profit comes from the difference between revenues and costs. A sector can generate profit growth through productivity growth or price over-recovery, or both. The course that is taken, however, has important implications for its longer-term competitive positioning. The South African agricultural sector showed a steady decline in its performance since 1973. The decline is attributed to the cost-price squeeze; increases in productivity did not compensate for decreases in price recovery. The decline reached its lowest in 1983 when the growth in productivity overtook the negative effect of the terms of trade.

Keywords: Agricultural and Food Policy; Demand and Price Analysis (search for similar items in EconPapers)
Date: 1993
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://ageconsearch.umn.edu/record/267603/files/agrekon-32-04-011.pdf (application/pdf)
https://ageconsearch.umn.edu/record/267603/files/a ... 1.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267603

DOI: 10.22004/ag.econ.267603

Access Statistics for this article

More articles in Agrekon from Agricultural Economics Association of South Africa (AEASA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().