1. SEMINAR IN AGRICULTURAL ECONOMICS (AGE 421)
THE EFFECTS OF THE DEREGULATION OF THE SOUTH
AFRICAN DECIDUOUS FRUIT INDUSTRY
Prepared by Supervisor : Prof . B.J Bester
Njara L.I
201006885

2. OUTLINE OF THE PRESENTATION
 INTRODUCTION
 Background
 THE EFFECTS AND DESCRIPTION OF THE DECIDUOUS FRUIT
INDUSTRY IN THE POST AND CURRENT GOVERNMENT ERA
 Marketing system used before the deregulation
 When and Why did the system change
 Major changes that took place
 Effect it has on deciduous fruit producers
 IMPLICATIONS & CONSEQUENCES OF THE DEREGULATION
 Benefits and opportunities of the deregulation
 Challenges and risks of the deregulation
 DISCUSSION AND CONCLUSION

3. INTRODUCTION
 The marketing of the fresh produce has changed beyond
recognition since the introduction of marketing of agricultural
products act 1997
 What is deregulation?
 The results of the deregulation of deciduous fruit industry
 Dissolution of the marketing board

4. THE EFFECTS AND DESCRIPTION OF THE DECIDUOUS FRUIT
INDUSTRY IN THE POST AND CURRENT GOVERNMENT ERA
Marketing system used in the post government
regime
 Single Channel Pool System
 Deciduous Fruit Board (DFB)
 Unifruco
When and Why the system change?
The system changed in 1997
Producers had no power to influence the price
Marketing arrangement was seen as
disadvantageous to black farmers

5. CONTINUED……
 Major changes that took place
 Unifruco and Outspan became Capespan
No single channel pool system
Formation of DFPT
Introduction to competition in marketing
New exporters failing within a short period
of time
Competitiveness of the industry decreased

6. CONTINUED….
Effect on producers
 Targeted companies of their own
 Had no fixed price
 Every producer allowed to export
 Many producers emerged and failed

7. IMPLICATIONS & CONSEQUENCES OF THE DEREGULATION
Advantages of the deregulation
 No marketing arrangement
 Every producer had the chance to export
Producers take ownership of their produce
 Free marketing environment because of the above
Disadvantages of the deregulation
 Exposure to international competition
Failure of emerging producers
 Quality of exported fruit decreased
Price decreased
Producers faced enormous debts

8. Discussion and Conclusion
Deregulation resulted in:
 stiffer competition
 Abolition of the DFB
Free marketing environment
Was the deregulation of the deciduous
fruit industry a good or bad thing?
Disadvantages outweigh the advantages.

9. END OF PRESENTATION
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