Strategic focus areas and emerging trade arrangements in the South African agricultural industry since the demise of the marketing boards

This paper investigates the responses of agribusiness managers to drastic changes in the policy and marketing environment of South African agriculture. The process of deregulation and liberalisation of agricultural markets exposed agribusiness managers to international trends, which required new ins...

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Bibliographic Details
Published in:Agrekon 2007-12, Vol.46 (4), p.494-513
Main Authors: Doyer, O T, D'Haese, M FC, Kirsten, J F, van Rooyen, C J
Format: Article
Language:English
Subjects:
Agribusiness
Agricultural and food market
Agricultural economics
Agricultural management
Business strategies
Institutional arrangements
Marketing
South Africa
Strategic focus areas
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Summary:This paper investigates the responses of agribusiness managers to drastic changes in the policy and marketing environment of South African agriculture. The process of deregulation and liberalisation of agricultural markets exposed agribusiness managers to international trends, which required new institutions and relationships. Based on a survey conducted among business managers, we explored emerging growth strategies, strategic focus areas and coordination preferences. Results suggest that managers prefer a growth strategy based on market penetration and market development. Important strategic drivers are value-adding and power drive. Managers expressed their preference for increased coordination and cooperation resulting in relation-based contracts and equity-based alliances.
ISSN:0303-1853
2078-0400
DOI:10.1080/03031853.2007.9523783