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Structural change in agribusiness: The case of Potgietersrusse Tabak Kooperasie (PTK)

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  • Doyer, Ockert T.
  • van Rooyen, C.J.

Abstract

In response to the structural changes in the South African agricultural sector, Potgieterusse Tabakkooperasie (PTK) extended its operations to include marketing activities. This article introduces the theme of structural change/industrialisation in the South African agricultural sector and explores the complexity of structural options and decision-making variables that managers have to face when considering vertical expansion. A case study approach is followed at the hand of new institutional economics to explain strategic choices by PTK management. The results from organisational theory and transaction cost theory, as applied to the same problem, yields complimentary and robust results.

Suggested Citation

  • Doyer, Ockert T. & van Rooyen, C.J., 2000. "Structural change in agribusiness: The case of Potgietersrusse Tabak Kooperasie (PTK)," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-12, December.
    • Handle: RePEc:ags:agreko:54218
    DOI: 10.22004/ag.econ.54218
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    References listed on IDEAS

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      • Liebenberg, Frikkie & Beintema, Nienke M. & Kirsten, Johann F., 2004. "South Africa," ASTI country briefs 14, International Food Policy Research Institute (IFPRI).
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    3. Sterns, James A. & Schweikhardt, David B. & Peterson, H. Christopher, 1998. "Using Case Studies As An Approach For Conducting Agribusiness Research," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(3), pages 1-17.
    4. Antonovitz, Frances & Buhr, Brian L. & Liu, Donald J., 1996. "Vertical Integration Incentives In Meat Product Markets," Staff Papers 13989, University of Minnesota, Department of Applied Economics.
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