Abstract
The demand for yellow maize was analysed using a normative approach. Cost minimizing behaviour of compound feed manufacturers was modelled in a linear programming formulation. The model formulates specific quantities of 14 different poultry-, pig-, cattle-, and sheep rations on a minimum cost basis. A wide variety of local and international feed sources were considered for inclusion in the rations. Prices, the availability and quality of each feed, the inclusion of specific feed sources in a ration and the consumption of each ration could be allowed to vary independently. Price elasticities of demand for yellow maize were estimated after the price of maize was increased parametrically. Substantial differences in maize demand price elasticities for the different livestock enterprises were found. A relaxation of feed importation restrictions showed a significant increase in the price sensitivity of yellow maize and resulted in a decline in the market share of South African yellow maize in the livestock feed market. Policy implications are highlighted. Suggestions for further analyses that are possible via the model are also presented.
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