dc.contributor.author |
Vermeulen, Hester
|
|
dc.contributor.author |
Kirsten, Johann F.
|
|
dc.contributor.author |
Sartorius, Kurt
|
|
dc.date.accessioned |
2008-12-15T12:42:56Z |
|
dc.date.available |
2008-12-15T12:42:56Z |
|
dc.date.issued |
2008-06 |
|
dc.description.abstract |
This paper presents an overview of contracting arrangements in agribusiness procurement practices in South Africa. The objective of this paper is to contribute to a better understanding of the structures and issues of raw commodity procurement in South African agribusiness supply chains. The results suggest that a wide range of institutions are employed to procure raw commodities for the South African agro-processing sector and that companies are increasingly moving away from the open market as a source of supply for raw commodities, and are utilising contractual arrangements instead. According to the main findings, 78.5% of the total volume of fruit and vegetables procured by agribusiness companies for processing is based on some form of contracting arrangement. The balance is procured through a combination of the open market, own estates, agents and imports. It is only in the case of potatoes, onions, beans and peanuts that a stronger reliance on the spot market is evident. South African retailers source 70% to 100% of their fresh produce directly from farmers (usually through growing programmes). The procurement of meat, poultry and eggs appears to favour vertical integration (and in some cases own production), medium- to long-term contracts and long-term ‛informal’ supply arrangements with selected groups of farmers. |
en_US |
dc.identifier.citation |
Vermeulen, H, Kirsten, J & Sartorius, K 2008, ‘Contracting arrangements in agribusiness procurement practices in South Africa’, Agrekon, vol. 47, no. 2, pp. 1-24. [http://www.aeasa.org.za] |
en_US |
dc.identifier.issn |
0303-1853 |
|
dc.identifier.uri |
http://hdl.handle.net/2263/8428 |
|
dc.language.iso |
en |
en_US |
dc.publisher |
Agricultural Economics Association of South Africa |
en_US |
dc.rights |
Agricultural Economics Association of South Africa |
en_US |
dc.subject |
Procurement |
en_US |
dc.subject |
Contracting |
en_US |
dc.subject |
Agro-processing |
en_US |
dc.subject.lcsh |
Agricultural industries -- South Africa |
|
dc.subject.lcsh |
Open market operations |
|
dc.subject.lcsh |
Raw materials |
|
dc.title |
Contracting arrangements in agribusiness procurement practices in South Africa |
en_US |
dc.type |
Article |
en_US |