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A Regional Analysis Of Agricultural Price Risk In South Africa

Author

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  • van Schalkwyk, H. D.
  • Groenewald, J. A.

Abstract

Regional output/input price differentials and variations were calculated to evaluate price risk in South Africa. It was found that price unstable regions are not necessarily also risky regions as regions with higher output/input price ratios can handle higher price variations better. The average value of the price index for the top ten regions is over 3 times larger than the average for the ten lowest regions. The higher the prices of inputs relative to output prices (the lower the price ratio), the smaller their application to each hectare of land, and the lower the land productivity. The regional prices appears to be a function of the interaction between differential natural and economic factors in different regions.

Suggested Citation

  • van Schalkwyk, H. D. & Groenewald, J. A., 1994. "A Regional Analysis Of Agricultural Price Risk In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(3), September.
    • Handle: RePEc:ags:agreko:267713
    DOI: 10.22004/ag.econ.267713
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    References listed on IDEAS

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    1. Van Zyl, J., 1989. "Die aard en omvang van risiko's in die RSA landbou," 1989 Annual Conference, September 25-27, Bloemfontein, South Africa 314725, Agricultural Economics Association of South Africa (AEASA).
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    Cited by:

    1. Jooste, A. & van Schalkwyk, H. D., 1996. "The Impact Of Different Macro-Economic Variables On The Optimal Distribution Of Beef In The Southern African Customs Union," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 35(4), December.

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