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Agrekon
Agricultural Economics Research, Policy and Practice in Southern Africa
Volume 38, 1999 - Issue 4
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Contributed Papers

WAS SOUTH AFRICAN AGRICULTURE OVERCAPITALISED IN THE APARTHEID ERA?

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Pages 777-787 | Published online: 09 Jun 2010
 

Abstract

This study investigates the misallocation of agricultural inputs that resulted from the pice and policy distortions of the apartheid era. Programming techniques, commonly knouw as data envelopment analysis (DEA), are used to measure the technical efficiency of input-use for High Veld farms from 1974 to 1983. In decrensing order of restrictiveness, the techniques are simple radial measures, radial measures adjusted for slacks and non-radial measures. The estimates consistently show that all the capital asset variables were used well beyond the point of maximum efficiency and could have been reduced by as much as a quarter or a third without reduring output. Labour overuse is also considerable, while there was the least waste for the variable inputs. Over the priod there was an increase in efficiency levels.

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