ARE SOUTH AFRICAN CO-OPERATIVES CREATING VALUE

John H. Hall and J.M. Geyser

No 18058, Working Papers from University of Pretoria, Department of Agricultural Economics, Extension and Rural Development

Abstract: This article examines the use of Economic Value Added (EVA) as a performance measure that South African wine co-operatives can use to determine whether value has been created for members. A detailed explanation of EVA is given, and the components of EVA are calculated. The EVA's of a number of co-operatives have been calculated and analysed. In addition the EVA of specific types of co-operatives indicate that the fruit and vegetable sector is a constant value creator. It is clear that in order to create value, the rate of return on invested capital must be greater than the cost of capital. Certain co-operatives and types of co-operatives provided the blue print for this.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 32
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ags:upaewp:18058

DOI: 10.22004/ag.econ.18058

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