Measuring the relative competitiveness of global deciduous fruit supply chains : South Africa versus Chile

[摘要] ENGLISH ABSTRACT: The South African deciduous fruit industry is influenced by a number of factors includingincreased globalisation of markets, trade liberalisation, advances in information technologyand consumer preferences. These factors have a continuous effect on the competitivenessof the industry and force deciduous fruit producers and processors to position themselvesas capable competitors in the global free-market environment. This study measures thecompetitiveness of the South African deciduous fruit supply chains relative to those ofChile in an attempt to address the following research question: What is the relative globalcompetitive advantage of the South African deciduous fruit supply chains relative to thoseof Chile?To adequately address this research question, data from the Food and AgriculturalOrganisation of the United Nations (FAO, 2005) is used to examine the competitiveness ofthe supply chains. Three internationally recognised indexes are also used to calculate thecomparative and competitive advantages of the deciduous fruit supply chains, namely, theNet Export index (NXi), Revealed Comparative Advantage (RCA#) index and the RelativeRevealed Comparative Trade Advantage (RTA) index.The results clearly show that South Africa's deciduous fruit supply chains have amarginally relative competitive advantage, with most of the deciduous fruit products havingRCA# and RTA index values situated around 0 to 10. The analysis shows that the SouthAfrican deciduous fruit industry is struggling, with a marginal global comparative andcompetitive advantage in terms of its value added products. Chile, on the other hand, hasa relatively better revealed comparative advantage as well as a higher relative globalcompetitive advantage in most of the deciduous fruit supply chains. South Africa has arelatively better global comparative advantage and competitive advantage over Chile onlyin apple juice and dried apricots. Despite South Africa's marginal competitiveness, most of the deciduous fruit supply chains are experiencing an upward competitiveness, which isnot the case for Chile.The results also reveal that the competitiveness of most of the deciduous fruit supplychains in South Africa, except for the apple and apricot chains, decreases from primary toprocessed products which implies that value-adding opportunities are still limited oruntapped. On the basis of these findings, this study makes an attempt to identify anddiscuss some of the factors that affect the competitiveness of the industry by using aframework of competitive advantage analysis proposed by Porter (1990, 1998). The mostimportant factors that impact on the competitiveness of the South African deciduous fruitindustry are availability of skilled labour; cost and quality of unskilled labour; availabilityand quality of capital; cost of technology; local market growth; threat of substitutes; landreform policy; labour legislation; current exchange rate (current strength of the rand); BEEpolicy; lack of timely and accurate information and the inaccuracy of some of the data ofthe Perishable Products Export Council Board (PPECB); continued agricultural subsidiesreceived by growers in countries competing with South Africa in global markets; and thehigh incidence of HIV/AIDS and crime. In order for the industry to enhance itscompetitiveness, a number of strategies to be adopted by all participants in the supplychain are suggested at the end of this study.

[发布机构] Stellenbosch University