Assesing measures for agroecological competitive advantage

Thesis (MAgric) --Stellenbosch University, 2023.

ENGLISH SUMMARY: The evaluation of agroecological farming practices is a subject of current interest in the field of sustainable agriculture. While agroecology has gained attention as a potential solution for sustainable food systems, assessing its economic performance relies on measuring its competitive advantage. Traditional metrics, including Total Factor Productivity (TFP), Private Cost Ratio (PCR), Profit Margin (PM), and Return on Assets (ROA), are commonly used to evaluate competitive advantage in various sectors, but their applicability to agroecological farming remains unclear. This master's thesis explores the applicability of traditional competitive advantage measures when applied to agroecology principles within the agricultural sector. The study applies the Analytical Hierarchy Process (AHP) to two Delphi panels to assess agroecological principles' priority and competitive advantage measures' alignment. Results indicate soil health as the most crucial agroecological principle, closely followed by fairness and biodiversity. Total Factor Productivity (TFP) emerges as the preferred measure of agroecological competitive advantage, followed by Profit Margin (PM) and Production Cost Ratio (PCR). While TFP is favoured, it presents limitations such as data requirements and the inability to capture certain externalities. The study underscores the need for new measures aligned with agroecology's holistic nature and acknowledges limitations, including the inclusive and context-specific nature of agroecology. This master's thesis contributes to the discourse on agroecological competitive advantage, emphasizing the importance of reevaluating traditional measures within the context of agroecology. It underscores the potential for sustainable agricultural practices to reshape competitive strategies, ultimately fostering a more resilient and equitable food system.

AFRIKAANSE OPSOMMING: Die evaluasie van agro-ekologiese boerderypraktyke is 'n onderwerp van huidige belangstelling in die veld van volhoubare landbou. Terwyl agro-ekologie aandag gekry het as 'n potensiele oplossing vir volhoubare voedselsisteme, berus die assesserings van sy ekonomiese prestasie op die meet van sy kompeterende voordeel. Tradisionele metriese, insluitend Totale Faktorproduktiwiteit (TFP), Privaat Koste Verhouding (PCR), Winsmarge (PM), en Rendement op Bates (ROA), word algemeen gebruik om kompeterende voordeel in verskeie sektore te evalueer, maar hul toepaslikheid vir agro-ekologiese boerdery bly onseker. Hierdie meestersgraad tesis ondersoek die verenigbaarheid tussen konvensionele maatstawwe van kompeterende voordeel en die beginsels van agro-ekologie binne die landbousektor. Die studie maak gebruik van die Analitiese Hierargieproses (AHP) analise, waar twee Delphi-panele uitgevoer word om die prioriteit van agro-ekologiese beginsels en die belyning van kompeterende voordeelmaatstawwe te assesseer. Resultate dui aan dat grondgesondheid die belangrikste agro-ekologiese beginsel is, gevolg deur regverdigheid en biodiversiteit. Totale Faktorproduktiwiteit (TFP) kom na vore as die verkose maatstaf vir agro-ekologiese kompeterende voordeel, gevolg deur Winsmarge (WM) en Produksiekosratio (PKR). Terwyl TFP voorkeur geniet, het dit beperkings soos datavereistes en die onvermoe om sekere eksternaliteite te komunikeer. Die studie beklemtoon die behoefte aan nuwe maatstawwe wat in lyn is met die holistiese aard van agro-ekologie en erken beperkings, insluitende die inklusiewe en konteks-spesifieke aard van agro-ekologie. Hierdie meestersgraad tesis dra by tot die diskoers oor agro-ekologiese kompeterende voordeel en beklemtoon die belangrikheid van die heroorweging van tradisionele maatstawwe binne die konteks van agro-ekologie. Dit beklemtoon die potensiaal vir volhoubare landboupraktyke om kompeterende strategiee te hervorm, wat uiteindelik 'n meer veerkragtige en regverdige voedselstelsel bevorder.

Masters