PR - FINANCIAL IMPACT OF WHEAT QUALITY STANDARDS ON SOUTH AFRICAN WHEAT PRODUCERS: A DLP APPROACH

Daniël van der Merwe, Johannes

No 345808, 21st Congress, Edinburgh, Scotland, July 2-7, 2017 from International Farm Management Association

Abstract: The South African wheat industry has been under pressure in recent years from global economic instability and a fast-changing domestic policy environment. This has manifested in declining wheat production and profitability at farm level. Wheat quality plays a key role in wheat-buying decisions, with quality improvements correlating negatively with yield and, ultimately, productivity. However, any new wheat cultivar released for commercial production must still meet the standards of the country’s wheat-classification system, which has led to wheat sometimes being imported in the face of a domestic shortfall. This has inevitably led to tension within the industry and affected both performance and pricing. Using a Dynamic Linear Programming model, this paper takes an in-depth look at the financial impact that resulted from this classification system that affected the performance and pricing of primary producers.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 15
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma17:345808

DOI: 10.22004/ag.econ.345808

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