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Determining integration in potato markets of South Africa

S. Modiselle, S. Mazwane and M. Randela

No 284787, 2018 Annual Conference, September 25-27, Cape Town, South Africa from Agricultural Economics Association of South Africa (AEASA)

Abstract: This paper looks at potato prices in four big fresh produce markets in South Africa, namely, Tshwane, Durban, Johannesburg and Cape Town. It starts by giving an overview of potato industry, its importance and performance of the markets over time. Its contribution in economy of South African includes creation of job opportunities, export earnings for the country, empowerment of traders in the informal sector, food to neigbouring countries, improved welfare of the general population through productivity increases, opportunities for emerging small-scale farmers and income generation in small towns and rural areas. The paper focuses on determining integration in potato markets using weekly potato data from January 2013 to December 2017 by using Cointegration which is run using Eviews. The results show that prices tend to converge towards one price in the long run. The paper also suggests policy implications that will assist smallholder potato farmers as they get exposure to the big formal markets. It also concludes that understanding the market integration will benefit potato consumers, traders and producers. In turn, farmers� livelihoods and food security will be improved as the farmers operate in an environment they understand.

Keywords: fresh produce markets; market integration; cointegration.; Crop; Production/Industries (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2018-09-25
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