IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/267251.html
   My bibliography  Save this article

Demand Equations For Selected South African Agricultural Commodities

Author

Listed:
  • Bowmaker, P. A.
  • Nieuwoudt, W. L.

Abstract

A set of demand equations for 18 South African agricultural products, representing three demand systems (red meats, fruits and vegetables), were estimated from monthly data for the period December 1982 to February 1988. Data were deflated with a commodity price index and natural logarithmic partial adjustment equations were estimated with two-stage least squares to determine demand parameters for each product. Theoretically expected results were obtained and, owing to variability in seasonal data, results were generally highly significant. Beef is confirmed as the dominant commodity in the red meat market, having cross-price flexibilities with mutton and pork of 0,30 and 0,20, respectively. All goods other than pumpkins are shown to be normal and fruits and vegetables (having many substitutes) are shown to be demand elastic. All products are normal goods, with the exception of pumpkins (income flexibility of -0,74), which are inferior. Apples and pineapples were found to be the dominant fruits and onions, tomatoes and cabbages had the most significant cross-price effects on the system of vegetable demand equations.

Suggested Citation

  • Bowmaker, P. A. & Nieuwoudt, W. L., 1990. "Demand Equations For Selected South African Agricultural Commodities," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(1), February.
    • Handle: RePEc:ags:agreko:267251
    DOI: 10.22004/ag.econ.267251
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/267251/files/agrekon-29-01-008.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/267251/files/agrekon-29-01-008.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.267251?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ortmann, G. F., 1982. "Demand Analysis Of Vegetables And Subtropical Fruit In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 21(2), October.
    2. Waugh, Frederick V., 1964. "Demand and Price Analysis: Some Examples from Agriculture," Technical Bulletins 171213, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hancock, P. J. & Nieuwoudt, W. L. & Lyne, M. C., 1984. "Demand Analysis Of Meats In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 23(2), October.
    2. Li, Chenguang & Sexton, Richard J., 2009. "Impacts of Retailers’ Pricing Strategies for Produce Commodities on Farmer Welfare," 2009 Conference, August 16-22, 2009, Beijing, China 51720, International Association of Agricultural Economists.
    3. Manchester, Alden C., 1992. "Rearranging The Economic Landscape: The Food Marketing Revolution, 1950-91," Agricultural Economic Reports 308263, United States Department of Agriculture, Economic Research Service.
    4. Traub, Lulama Ndibongo & Jayne, Thomas S., 2004. "The Effects of Market Reform on Maize Marketing Margins in South Africa," Food Security International Development Working Papers 54570, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Traub, Lulama Ndibongo & Jayne, T.S., 2008. "The effects of price deregulation on maize marketing margins in South Africa," Food Policy, Elsevier, vol. 33(3), pages 224-236, June.
    6. Marsh, John M., 1991. "Derived Demand Elasticities: Marketing Margin Methods Versus An Inverse Demand Model For Choice Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-10, December.
    7. Carambas, Maria Cristina D.M., 2005. "Analysis of Marketing Margins in Eco-Labeled Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24600, European Association of Agricultural Economists.
    8. Blisard, William Noel, 1986. "Farm-To-Retail Price Linkages For Sugar," Staff Reports 277846, United States Department of Agriculture, Economic Research Service.
    9. Walter Labys, 2005. "Commodity Price Fluctuations: A Century of Analysis," Working Papers Working Paper 2005-01, Regional Research Institute, West Virginia University.
    10. Houck, James P., 1974. "The Short-Run Impact Of Beef Imports On U.S. Meat Prices," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 18(1), pages 1-13, April.
    11. Capps, Oral, Jr. & Williams, Gary W., 2006. "The Economic Effectiveness of the Cotton Checkoff Program," Reports 90753, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    12. Vere, David T. & Griffith, Garry R., 1995. "Forecasting in the Australian Lamb Industry: the Influence of Alternate Price Determination Processes," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(03), pages 1-11, December.
    13. Cornell, Laurence D. & Sorenson, Vernon L., 1986. "Implications of Structural Change in U.S. Demand for Meat on U.S. Livestock and Grain Markets," Agricultural Economic Report Series 201355, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    14. Beach, Robert H. & Murray, Brian C. & Piggott, Nicholas E. & Wohlgenant, Michael K., 2002. "Interaction Effects Of Promotion, Research, And Price Support Programs For U.S. Cotton," 2002 Annual meeting, July 28-31, Long Beach, CA 19803, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Tweeten, Luther G., 1980. "An Economic Investigation Into Inflation Passthrough To The Farm Sector," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 5(2), pages 1-18, December.
    16. Prochaska, Fred J., 1978. "Prices, Marketing Margins, And Structural Change In The King Mackerel Marketing System," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(1), pages 1-5, July.
    17. repec:rri:wpaper:200501 is not listed on IDEAS
    18. Rojko, Anthony S. & Urban, Francis S. & Naive, James J., 1971. "World Demand Prospects for Grain in 1980: With Emphasis on Trade by the Less Developed Countries," Foreign Agricultural Economic Report (FAER) 145568, United States Department of Agriculture, Economic Research Service.
    19. Stuckey, John A. & Anderson, Jock R., 1974. "Demand Analysis of the Sydney Banana Market," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(01), pages 1-15, March.
    20. Traub, Lulama Ndibongo & Jayne, Thomas S., 2006. "The Effects of Market Reform on Maize Marketing Margins in South Africa: An Empirical Study," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25635, International Association of Agricultural Economists.
    21. Capps, Oral & Byrne, Patrick J. & Williams, Gary W., 1995. "Analysis of Marketing Margins in the U.S. Lamb Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(2), pages 232-240, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:267251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.