INDUSTRIALISATION OF AGRICULTURE AND THE ROLE OF SUPPLY CHAINS IN PROMOTING COMPETITIVENESS / INDUSTRIAING VAN DIE LANDBOU EN DIE ROL VAN LEWERINGSKETTINGS IN DIE BEVORDERING VAN MEDEDINGENDHEID

Abstract

Changing consumer demands, new technologies and increasing competition have caused major structural changes in the agri-food sector. These developments have led to increased interdependence among participants in food supply chains, from input supplier to producer to process and retailer Institutional arrangements have developed to improve co-ordination among firms in supply chains, reduce transaction costs and accelerate transmission of information. A major challenge for institutions in South Africans is to promote income growth and competitiveness of small-scale farmers, and their participation in value-adding supply chains. Agricultural economists in South Africa can make an increasing contribution to agribusiness development by researching relevant issues. The ongoing industrialisation of agriculture is also attracting more undergraduate students into agribusiness studies, which have become all important area for teaching by agricultural economists.