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

Author(s)
Myeki, Lindikaya W
Temoso, Omphile
Nyhodo, Bonani
Publication Date
2024
Abstract
<p>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.</p>
Citation
Journal of Productivity Analysis, v.61, p. 321-332
ISSN
1573-0441
0895-562X
Link
Publisher
Springer New York LLC
Rights
Attribution 4.0 International
Title
The evaluation of productivity in South African deciduous fruit industry: evidence from stone and pome fruits
Type of document
Journal Article
Entity Type
Publication

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