Abstract— The Limpopo Province is home to South Africa’s tomato farming giants, some of whom also occupy the position of the largest producers of the commodity in the Southern Hemisphere. Regardless of its importance in the tomato industry of the country, there are few studies analysing the mechanism through which prices of tomatoes are determined and transmitted from the farm gate in Limpopo to the various provincial, local and international markets. This study attempts to fill the knowledge gap on the performance of Limpopo Province’s tomato markets by examining the marketing margins and the direction of price flow amongst the successive tomato marketing levels. By means of the Concurrent Marketing Margin Analysis approach, it was established that the farmers’ portion of the consumer’s Rand is low. About 85.1% of the consumer’s Rand goes to pay for marketing margins. Granger causality tests show that both the wholesale and retail prices are caused by farm gate prices. The farm level is therefore key to tomato price determination in Limpopo Province of South Africa and pertinent policies that improve the commodity’s primary sector may potentially enhance the other sectors in value chain that depend on tomato production.
Keywords— Limpopo Province, market dominance, marketing margins, price flow, tomato markets, vertical price linkage.
AD Publications is a rapidly growing academic publisher in the fields of Engineering, Medical-Health, Environmental Science and Agriculture Research. AD Publications is a registered organization broad-based open access and publishes most exciting researches with respect to the subjects of our journals. The Journals is being indexed and abstracted by all major global current awareness and alerting services.
The organization aims at undertaking, co- coordinating and promoting research and development. It provides professional and academic guidance in the field of basic education, Higher Education as well in the Technical Education. Our Aims is to Promote and support, High Quality basic, Scientific Research and development in fields of Engineering, Medical-Health, Environmental Science and Agriculture Research and to Generate Public awareness, provide advice to scholar’s researchers and communicate research outcomes.