Author: Jean-Paul Baldwin

Publisher:

Published: 2013

Total Pages: 167

ISBN-13:

The citrus industry has continued to establish itself as one of South Africa's primary agricultural sectors. With a national unemployment rate of over 25%, the South African citrus industry has played a significant role in providing a source of economic activity for the country's largely rural population. Additionally, the agricultural sector continues attracting immigrants from neighboring countries seeking additional employment opportunities. Primarily focusing on its transition from a regulated to deregulated industry (brought upon by the removal of apartheid and, in turn, the country's first democratic political party), the citrus industry has encountered numerous transformative periods. Previous research focuses predominantly on the initial implications caused by the deregulation process. Comparatively, little research has analyzed the efficiency or more recent economic performance of the citrus industry, nor the relations between institutional arrangements from a pre-and post-deregulated period. This research aims to contribute to the limited existing literature by qualitatively and quantitatively analyzing these understudied components. We present an industrial organizations analysis of the industry's structure, conduct and performance, an import demand model, and a case-study based upon interviews and responses from South African farmers and exporters. Attempting to provide insight into the current institutional arrangement of direct trading adopted by mass retailers, the case study's farmers and exporters discuss its viability. Additionally, we examine potential short and long term consequences brought upon by this new channel.