The evaluation of productivity in South African deciduous fruit industry: evidence from stone and pome fruits

Lindikaya W. Myeki (), Omphile Temoso and Bonani Nyhodo
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Lindikaya W. Myeki: Department of Agricultural Economics, University of the Free State
Omphile Temoso: University of New England
Bonani Nyhodo: Agri-trust Division, National Agricultural Marketing Council

Journal of Productivity Analysis, 2024, vol. 61, issue 3, No 8, 332 pages

Abstract: Abstract This study examines the total factor productivity (TFP) of the South African deciduous fruit sector over an 8-year period (2014–2021), using industry-level data for five fruit types (apples, pears, plums, apricots, and peaches). TFP growth was estimated using the Färe-Primont (FP) index and decomposed into technical change (TECH) and efficiency change (TFPE). The results show that the TFP of the industry increased by 27% (3.53% per year) due to a 35% (4.38% per year) increase in technical change, while TFPE decreased by 6% (−0.81% per year). The TFPE breakdown into technical efficiency (OTE) and scale-mix efficiency (OSME) reveals that 6% decrease in OSME was entirely responsible for TFPE slowdown, while OTE remained unchanged. While both sub-sector contributions were significant, stone fruit grew at a faster rate (32%, or 4.05% per year) than the pome sub-sector (21%, or 2.74% per year). Overall, entire industry, sub-sectors, and fruit types show that TECH was key to TFP growth, whereas TFPE slowed it. Investments in efficiency support programmes have the potential to enhance sector growth.

Keywords: Productivity; Horticulture; Deciduous Fruit; Färe-Primont index; South Africa (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11123-023-00711-1

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