COMMERCIAL AGRICULTURE IN THE WESTERN CAPE: MACROECONOMIC ANALYSIS WITH A SOCIAL ACCOUNTING MATRIX / KOMMERSIËLE LANDBOU IN DIE WES-KAAP: MAKRO-EKONOMIESE ANALISE MET 'N SOSIALE REKENING MATRIKS

Abstract

A social accounting matrix was developed for the Western Cape to meet growing needs for quantitative analysis of the agricultural sector. Twenty-five farm commodities and seven agribusinesses are explicitly included in the model. The coloured and black populations dominate provincial expenditure on fresh and processed farm commodities, suggesting that future demand growth depends on income increases among these household groups. In the aggregate, agriculture's contributions to job creation, value added and government revenue significantly exceed those of the nonagricultural sectors; agribusiness exceeds other nonagricultural sectors because of their backward links to production agriculture. Within agriculture, horticulture and livestock subsectors make the most significant contributions to the macro economy. Similar patterns are found with respect to generating household incomes, and in the equality with which such incomes are distributed. Household economic behaviour is explicit. Spending by the poor is found to be more labour intensive than spending by the rich, and generates greater impacts on value added (GGP), gross operating surplus and the demand for most farm and non-farm commodities. A composite ranking of macroeconomic contributions to development is constructed. Nine horticultural enterprises and broilers comprise the ten top sectors.

'n Sosiale Rekening Matriks is vir die Wes-Kaap ontwikkel ten einde aan 'n groeiende behoefte vir kwantitatiewe analise in die landbousektor te voldoen. Vyf-en-twintig landbou kommoditiete en sewe agri-nywerhede is eksplisiet in die model ingesluit. Die kleurling en swart bevolking domineer provinsiale besteding op vars en geprosesseerde landbou kommoditeite, en dit dui daarop dat toekomstige groei in vraag afhanklik is van groei in inkome onder die betrokke huishoudings. In die geheel oorskry landbou se bydrae tot werkskepping, waarde toevoeging en staatsinkomste die bydrae van agri-nywerhede wat op hul beurt, as gevolg van hul rugwaartse bindings met die landbou sektor, die nie-landbou sektore se bydrae oorskry. Die tuinbou en veeteelt subsektore binne die landbou maak die beduidendste bydrae tot die makro ekonomie. Soortgelyke patrone word gevind ten opsigte van houshoudelike inkome gegenereer en in die gelyke verdeling van sodanige inkome. Die ekonomiese gedrag van huishoudings is eksplisiet. Dit is bevind dat die besteding van die arm huishouldings meer arbeidsintensief is as besteding deur die rykes en dat dit 'n groter impak op toegevoegde waarde (BGP), bruto bedryfsurplus en die vraag na die meeste landbou kommoditeite tot gevolg het. 'n Saamgestelde rangorde van makro ekonomiese bydraes tot ontwikkeling is gekonstrueer. Nege tuinbou kommoditeite en braaikuikens behels die tien top sektore.