THE COMPETITIVENESS OF THE AGRICULTURAL INPUT INDUSTRY IN SOUTH AFRICA

Abstract

The South African agricultural industry is consistently challenged to increase it, competitiveness. The agribusiness supply chain starts with the input sector. The objective of this paper is therefore to determine the competitiveness of the various agricultural input industries in South Africa by using Balassa's method of Repealed Comparative Trade Advantage. This status will then be related to performance of the agricultural industry as a whole. South African manufacturing of farming requisites as a whole are relative marginally competitive in the international area. However, positive trends in competitiveness is observed. The agricultural machinery industry is not competitive but is improving. The fertiliser industry is becoming increasingly more competitive while in the pesticides industry there is a decrease in the ability to compete internationally. From 1995 there is a relatively high and positive correlation between the competitiveness of the input industry and the agro-food industry in South Africa. This relationship substantiates tile claim that fundamentally the South African agricultural economy is more competitive today then a decade ago.