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The Effect Of Income On The Market For Carbohydrates In South Africa

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  • Elliott, M. B.
  • van Zyl, J.

Abstract

Despite the importance of the carbohydrate market as a source of staple food for the majority of the South African population, very little statistical information is available on the subject as a basis for policy formulation. Research centred on the white maize industry. Results show that regional differences within the market for maize are of cardinal importance, making country-wide generalisations dangerous and a regional marketing strategy imperative. One of the most significant results for the strategic marketing of maize meal is that a single population estimate for income elasticity is inadequate, especially when 94% of maize meal is consumed by a single consumer group - the Black population. Indications are that for Blacks in South Africa, maize is a normal good if seen in a national context. Consequently, as incomes fall or as relative prices rise, less maize is consumed. This is supported by urban price elasticities. It is proposed that this could have had a substantial effect on maize consumption in the past and have important implications for the marketing of staple food in a new South Africa.

Suggested Citation

  • Elliott, M. B. & van Zyl, J., 1991. "The Effect Of Income On The Market For Carbohydrates In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(4), December.
  • Handle: RePEc:ags:agreko:267498
    DOI: 10.22004/ag.econ.267498
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    References listed on IDEAS

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    1. Elliott, Mike & van Zyl, Johan, 1991. "Scanner Data Analysis With Specific Reference To The South African Carbohydrate Market," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(2), June.
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      Keywords

      Labor and Human Capital; Marketing;

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