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An economic analysis of restructuring of the South African hake quota market

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dc.contributor.author Strydom MB en
dc.date.accessioned 2016-09-22T10:15:43Z
dc.date.available 2016-09-22T10:15:43Z
dc.date.created 1998 en
dc.date.submitted 1999 en
dc.identifier.uri http://hdl.handle.net/20.500.11892/81246
dc.description.abstract Hake is the most valuable fisheries species in South Africa with an estimated landed value of R658 million in 1997. Fundamental restructuring of the South African hake fisheries is however recommended by the White Paper on Marine Fisheries Policy (1997). This study aims at providing economic solutions to some of these problems of restructuring. Management methods such as imposing upper limit on catches, access restriction (licenses), input restrictions and taxes have been shown to be unsuccessful at maximising economic rent generated by fisheries' resources. According to the White Paper, South Africa intends pursuing very similar management techniques, to those employed by these leading countries, and it is therefore crucial that policy makers combined international experience with local knowledge and conditions, to draft the best possible fisheries' policy for the country. Factor analysis of data collected from a postal survey of existing South African hake quota holders rejected hake quota applications, suggests that distinct differences in attitudes towards restructuring exist among respondents. For factors, representing groups of respondents defined as applicants, quota holders, small scale respondents (comprising of both applicants and quota holders), and larger, longer established quota holders, sharing similar attitudes towards restructuring, were extracted. Applicants seem concerned with having to compete with established business for quota, opposing any form of payment for quota. Current quota holders on the other hand, seem more concerned with issues of self-utilisation and the effect paying for quota might have on present business operations. Another group of respondents defined smaller scale respondents (comprising of both quota holders and applicants) demonstrated concern about the present imbalance in the industry, where a few large companies receive the majority of the quota. Analysis also revealed a group defined as larger, longer established quota holders who's primary concern seemed to be possible sudden reductions in quota allocation, and proposed methods of payment for quota. A substantial annual rent of approximately R279 million is generated by the South African hake industry, which is presently harvested free of charge by those issued with quota. These rents appear high relative to the landed value of hake of approximately R658 million. This may be evidence of the capital-intensive nature of the hake industry, with large quota allocations needed to sustain an economically viable operation. Extraction of these rents through auctioning should be considered, while a portion of the TAC could be set aside to poorer communities. en
dc.language English en
dc.subject Economics en
dc.subject Agricultural economics en
dc.title An economic analysis of restructuring of the South African hake quota market en
dc.type Masters degree en
dc.description.degree MEcon en

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