1. SEMINAR IN AGRICULTURAL ECONOMICS (AGE 421)
THE EFFECTS OF THE DEREGULATION OF THE SOUTH
AFRICAN DECIDUOUS FRUIT INDUSTRY
Prepared by Supervisor : Prof . B.J Bester
Njara L.I
201006885
2. OUTLINE OF THE PRESENTATION
INTRODUCTION
Background
THE EFFECTS AND DESCRIPTION OF THE DECIDUOUS FRUIT
INDUSTRY IN THE POST AND CURRENT GOVERNMENT ERA
Marketing system used before the deregulation
When and Why did the system change
Major changes that took place
Effect it has on deciduous fruit producers
IMPLICATIONS & CONSEQUENCES OF THE DEREGULATION
Benefits and opportunities of the deregulation
Challenges and risks of the deregulation
DISCUSSION AND CONCLUSION
3. INTRODUCTION
The marketing of the fresh produce has changed beyond
recognition since the introduction of marketing of agricultural
products act 1997
What is deregulation?
The results of the deregulation of deciduous fruit industry
Dissolution of the marketing board
4. THE EFFECTS AND DESCRIPTION OF THE DECIDUOUS FRUIT
INDUSTRY IN THE POST AND CURRENT GOVERNMENT ERA
Marketing system used in the post government
regime
Single Channel Pool System
Deciduous Fruit Board (DFB)
Unifruco
When and Why the system change?
The system changed in 1997
Producers had no power to influence the price
Marketing arrangement was seen as
disadvantageous to black farmers
5. CONTINUED……
Major changes that took place
Unifruco and Outspan became Capespan
No single channel pool system
Formation of DFPT
Introduction to competition in marketing
New exporters failing within a short period
of time
Competitiveness of the industry decreased
6. CONTINUED….
Effect on producers
Targeted companies of their own
Had no fixed price
Every producer allowed to export
Many producers emerged and failed
7. IMPLICATIONS & CONSEQUENCES OF THE DEREGULATION
Advantages of the deregulation
No marketing arrangement
Every producer had the chance to export
Producers take ownership of their produce
Free marketing environment because of the above
Disadvantages of the deregulation
Exposure to international competition
Failure of emerging producers
Quality of exported fruit decreased
Price decreased
Producers faced enormous debts
8. Discussion and Conclusion
Deregulation resulted in:
stiffer competition
Abolition of the DFB
Free marketing environment
Was the deregulation of the deciduous
fruit industry a good or bad thing?
Disadvantages outweigh the advantages.