The evaluation of productivity in South African deciduous fruit industry: evidence from stone and pome fruits

Title
The evaluation of productivity in South African deciduous fruit industry: evidence from stone and pome fruits
Publication Date
2024
Author(s)
Myeki, Lindikaya W
Temoso, Omphile
( author )
OrcID: https://orcid.org/0000-0002-3327-0467
Email: otemoso2@une.edu.au
UNE Id une-id:otemoso2
Nyhodo, Bonani
Type of document
Journal Article
Language
en
Entity Type
Publication
Publisher
Springer New York LLC
Place of publication
United States of America
DOI
10.1007/s11123-023-00711-1
UNE publication id
une:1959.11/61515
Abstract

This study examines the total factor productivity (TFP) of the South African deciduous fruit sector over an 8-year period (2014–2021), using industry-level data for five fruit types (apples, pears, plums, apricots, and peaches). TFP growth was estimated using the Färe-Primont (FP) index and decomposed into technical change (TECH) and efficiency change (TFPE). The results show that the TFP of the industry increased by 27% (3.53% per year) due to a 35% (4.38% per year) increase in technical change, while TFPE decreased by 6% (−0.81% per year). The TFPE breakdown into technical efficiency (OTE) and scale-mix efficiency (OSME) reveals that 6% decrease in OSME was entirely responsible for TFPE slowdown, while OTE remained unchanged. While both sub-sector contributions were significant, stone fruit grew at a faster rate (32%, or 4.05% per year) than the pome sub-sector (21%, or 2.74% per year). Overall, entire industry, sub-sectors, and fruit types show that TECH was key to TFP growth, whereas TFPE slowed it. Investments in efficiency support programmes have the potential to enhance sector growth.

Link
Citation
Journal of Productivity Analysis, v.61, p. 321-332
ISSN
1573-0441
0895-562X
Start page
321
End page
332
Rights
Attribution 4.0 International

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