SOUTH AFRICAN AGRICULTURE AND INFLATION PHENOMENA
- 1 April 1985
- journal article
- research article
- Published by Taylor & Francis Ltd in Agrekon
- Vol. 24 (1), 30-36
- https://doi.org/10.1080/03031853.1985.9524041
Abstract
From 1973 tot 1982 South Africa experienced double digit inflation, more rapid rises in food than general price levels and slower increases in agricultural producers' prices than for inputs and consumers' goods. Agriculture earns much of its revenue through exports. Demand-pull inflation probably didn't cause the sharp food price increases. Fanners contribute to demand-pull inflation through injudicious purchases of inputs. Input prices rise faster locally than overseas. This decreases competitive power on international markets. Tariff protection of inputs and monopolistic conditions are contributory factors. Agricultural profitability decreases, debts rise and risks increase. Eventually this will result in smaller supply and higher food prices. Monopolies reduce agriculture's bargaining power. The Marketing Act attempts to improve this. Some boards, however, become statutory monopolies and contribute to cost-push. Such actions and the monopolistic actions of some Co-ops are harmful. In general, monopolies warrant more attention.This publication has 5 references indexed in Scilit:
- Welfare Implications of Oligopoly in U.S. Food ManufacturingAmerican Journal of Agricultural Economics, 1982
- CHANGES IN THE PARITY POSITION OF SOUTH AFRICAN AGRICULTUREAgrekon, 1982
- Estimates of Consumer Loss Due to Monopoly in the U.S. Food-Manufacturing IndustriesAmerican Journal of Agricultural Economics, 1979
- The demand for food in South AfricaAgrekon, 1970
- Theories Explaining the Persistence of Low Resource Returns in a Growing Farm EconomyAmerican Journal of Agricultural Economics, 1969