Competitiveness analysis of the South African avocado industry

Abstract

ABSTRACT The South African avocado industry has experienced a major decline in its export performance which could be attributed to its overall competitiveness in the global export markets. This study seeks to analyse the competitiveness of the South African avocado industry based on the perceptions of the industry participants and other industry experts. The main purpose of this study is to provide a comprehensive statement on the competitiveness of this industry for strategic planning by agribusiness managers and other key stakeholders to improve the industry’s competitiveness. A five-step analytical framework previously used in similar studies is applied to measure and analyse the competitive performance of the South African avocado industry. Through engagements with industry participants and experts, 90 factors that influence the competitiveness of the South African avocado industry were identified. An analysis of these factors using Porter’s Determinants of Competitiveness approach supported by measurements of comparative advantage using trade measures such as the Revealed Comparative Advantage (RCA), Relative Trade Advantage (RTA), Revealed Symmetric Comparative Advantage (RSCA), Normalized Revealed Comparative Advantage (NRCA) and Global Competitiveness Index (GCI), this study was able to establish that the South African avocado industry is experiencing competitiveness challenges. Climate change, competition in the international markets, and various South African policies were identified as major constraints for the competitiveness of the South African avocado industry. Thirteen strategic actions that could be used to improve the competitiveness of this industry are recommended. The study mainly focused on the South African avocado industry; thus, generalisations should be cautious.