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*Thulasizwe Mkhabela
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International Journal of Agricultural Marketing

Demand-led market opportunities for farmers in the high value product sector in South Africa: Demand elasticities for selected vegetables

*Thulasizwe Mkhabela

*Department of Agricultural Economics, Stellenbosch University; and KwaZulu-Natal Agribusiness Development Agency, 5 Cascades Crescent, Cascades Office Park, Montrose, Pietermaritzburg, 3202, South Africa. Tel.: +27 33 3478600, Fax: +27 33 3470913, E-mail: mkhabelat@ada-kzn.co.za

Accepted February 04, 2016.

Citation: Mkhabela T (2016). Demand-led market opportunities for farmers in the high value product sector in South Africa: Demand elasticities for selected vegetables. International Journal of Agricultural Marketing, 3(1): 111-118.

Copyright: © 2016 Mkhabela T. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.

Abstract

Market information is indispensable in facilitating marketing of agricultural produce, particularly fresh produce given its high perishability. The purpose of this study was to estimate South African consumers’ demand for vegetables. Demand for six vegetables was analysed via a multi-stage budgeting system, using data from the Household Expenditure Survey and the 2010 edition of the Abstract of Agricultural Statistics. The estimated demand elasticities show that the demand for all vegetables increases with rising per capita income. Most of the vegetables were found to respond substantially to changes in their own prices and in the direction as expected with estimated negative own-price elasticities.

Keywords: Vegetables, South Africa, multi-stage budgeting system, demand elasticities, market access.

JEL Classification: D12, Q11