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Abstract

After the deregulation of the South-African agricultural marketing boards, producers are responsible for their own marketing. Various marketing options emerged due to the new marketing environment and the producer needs to take a lot of information into account in order to make the correct marketing decisions. Ample literature exists on the advantages that marketing plans can provide for the producer such as the reduction of price and income risks. Productions cost forms an integrated part of a marketing plan and helps the producer to fix prices in order to run a profitable business. The model that has been developed enhances the producer to develop an optimal crop choice and marketing strategy, given his own unique situation as well as the characteristics of his farm business. The model, for example, takes into account production costs, available marketing funds and cultivation restrictions to develop a strategy that can ensure a reasonable profit per hectare.

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