The dynamics of the current business environment have changed the manner in which businesses are conducted all over the world (Passikof 14). The world economy has been globalized in different ways, and the ever-changing trends in trade financing and emerging market instruments have altered the scope and nature of agribusiness in many countries. Indeed, while globalization in economics has led to higher rates of inflation, it has increased trade and agricultural productivity in many countries and trade-blocks (Jaffee 18). Various economists have argued that the practice of restricting a country’s economy to the notion of ‘‘nation-state’’ is nearly being overturned by the current trade patterns (Free 10). For instance, Stephen Bezruchka observes that the agreement that gave birth to the South African Development Community (SADC) was an endeavor to weaken economic detachments across the Southern African States (284).
What has come into view is that various economic changes and an enabling socio-political atmosphere have created new platforms for international agricultural businesses and partnerships for South Africa and its immediate trade associates (Jaffe 1). Clearly, the South African government seems to have recognized that a country’s economic progress is limited when it faces its challenges as a single entity (World Bank 4). Moreover, agricultural policies and practices in South Africa have changed drastically during the last ten years (Mateen 13). These changes affected marketing trends and financing options for the country’s local and agribusiness landscapes. To this extent, various agribusinesses are now positioning themselves as entities propped up by a desire to achieve higher levels of market competitiveness and more international relevance (Jaffee 20).
Indeed, in the new international trade environment, agricultural-based goods processing and consumption trends have become unavoidable targets for the widely-acclaimed purposes of value addition (World Bank 10). Unsurprisingly, economic integration has led to both positive and negative outcomes (Passikof 14). To be sure, there have been stiffer trade regulations, improved security arrangements, different marketing trends, as well as financing options and policies for South African food products (Morrison and Sarris 86). With a focus on South Africa and its trade partners, this paper aims to highlight the emerging trends in international agribusiness trade, financing options, and marketing trends. Moreover, the paper highlights private sector financing trends and technological adaptations in South Africa and its regional trade-blocks.
The Overall Trends in Agribusiness Trade in South Africa in the Context of Recent Recessions and New Trade Partners
Agribusiness trade volumes have increased dramatically for many African countries over the last ten years (Jaffee 24). According to various analysts, this growth has been driven by an increase in south-to-south trade and the ever-increasing significance of Africa as a supplier of raw materials and food products to emerging Asia (World Bank 16). Six years ago, the production of materials exported from South Africa to Asian countries was significantly higher than in any other country, and approximate Africa’s contribution stood at 73%.
The figure below (figure 1) shows the evolution of agribusiness trade in Africa between 1999 to 2008.
However, it appears that the recent economic recession has played a significant role in diminishing trade trends and volumes in many African countries such as South Africa (World Bank 29). Indeed, various research reports illustrate how the spread of the latest economic inflation, based on different globalization practices, has led to both undesirable and desirable agribusiness outcomes in Africa (Jaffee 26). Clearly, the recession has led to a considerable level of unemployment and reduced economic growth indicators in the world’s major economies and regional economic giants such as South Africa (Carr 20).
Despite the emergence of many conflicting hypotheses to explain the spread of the latest inflation, there seems to be an agreement that economic globalization is a major cause of the negative changes witnessed in agricultural trade patterns in South Africa and its neighboring countries (Free 13). Stephen Bezruchka reckons that the trickle-down effects of the latest economic inflation have been heightened by the many economic globalization practices (284).
In addition, the effects of globalization in economics have been seen in South Africa’s agricultural-trade management systems. Bezruchka observes that there have been two major ways by which potential agribusiness advantages have been affected by a globalized economy (284). The first one is the manner by which the economic changes have been utilized in the expansion of public services to take away or add the burden associated with poverty (Morrison and Sarris 86). The second one is whether, in the absence of such growth, the immediately available resources have been used for agricultural productivity benefits in the integrated economies (Bezruchka 285). In view of these facts, some of today’s poor agricultural trade conditions are linked to inadequate growth in financing (Free 24).
Agribusiness Trade Financing in South Africa
Available data on African trade has been, to a large extent, incomplete and controversial. To be sure, there have been no-full proof data on agribusiness trade finance changes and options for most African countries, including South Africa. Most of the available statistics are often misleading (Bezruchka, 284). In spite of this anomaly, the evaluation of publications that focus on global trade and well-scrutinized financial statements of various African banks shows that agribusiness trade finance has been gradually available and increasingly affordable amidst the recent economic-crisis phase of 2000 and 2008 (Passikof 17).
An illustration worth noting is the statistics provided by ‘‘Ecobank’’ showing an approximate deployment of 92 million dollars in contingencies and agribusiness-based credit by the end of the 2003 financial year. Although the figures may not be accurately comparable because of the establishment of the bank’s network, they are congruent with the numbers reported by other international financial organizations (World Bank 21). More importantly, senior product managers of various banks, such as Standard Chartered Bank, reported that agribusiness finance had matured dramatically in South Africa between 2004 and 2007 (Jaffee 30).
Just as important, various trade-finance specializing media organizations have repeatedly featured reports that highlight critical transactions showing an increase in the demand, transaction volumes, and emerging borrowers in the country’s agribusiness markets (Mateen 23).
However, agribusiness trade performance in South Africa, just like in many African countries, has been affected more negatively than most other world regions. Although the outcome of this setback may be immaterial, because of the comparative insulations and inadequate development of various monetary measures in most African countries, the ‘‘circumlocutory’’ consequences on agribusinesses for South Africa have been more real. In fact, South African agricultural exports have been hit by the recent economic recessions (Bezruchka 285). This has been more glaring when such agricultural exports are destined for industrialized countries in Europe, Asia, and North America (Passikof 24).
To a large extent, the explanation for this trend resides in Africa’s export vulnerability to a higher dependency on agribusiness trade finance. In any case, exporting countries with well-developed financial systems are often adequately equipped to cushion themselves against the effects of financial crises (Jaffee 26). Unfortunately, such a possibility has not been feasible by most of South Africa’s financial systems and agricultural firms relying on foreign finance.
Public-Private Collaborations Financing
The growing importance of public-private partnerships (PPPs) in increasing the financial, personnel and social investment in agricultural production and marketing to meet food-supply challenges cannot be overstated (World Bank 16). Because of PPPs, the South African government has increased its level of participation in providing the much needed environment for supporting agricultural-based research and development, measures for technology transfer as well as financing (Mhlanga 43). In many ways, the collaborations have been witnessed in matters of marketing, training and information technology, as well as the expansion of rural infrastructure and risk-control instruments (Mataen 29).
In retrospect, good governance and investment measures in agricultural production and marketing have become key areas for strategic-intervention framework for developing agriculture in the context of private-public discussions and financing (Morrison and Sarris 89).To this extent, the South African government continues to partner with various institutions to promote effective business processes and accountability in marketing and financing (Jaffee 38). In fact, there have been various innovations for the purposes of good governance in South African agricultural production so that issues of global competitiveness and value addition are addressed sufficiently (Mhlanga 43).
Indeed, good governance in South Africa’s agricultural production and marketing continues to be built by developing social capital and collaborative participation in agricultural financing to improve information sharing and reduce land conflicts (World Bank 17). Today, many international finance institutions and private organizations partner with public sectors for improved agricultural production and increased markets. Specifically, private food processing companies are now driving the agro-food industry in South Africa (Jaffee 44).
Because of the higher probabilities associated with post-harvest losses in South Africa, these companies have been crucial in converting primary agricultural products into consumable goods (Mataen 26). Conceivably, these agro-food processing companies now include multinational corporations and small-scale processors (Bezruchka 285). In the end, the South African government has recognized the importance of export and investment promotion protocols as contributors to a sustainable enterprising and agribusiness.
The figure below shows the distribution of enterprises by foreign investor profiles
Tab 1: Distribution of enterprises by foreign investor profiles. Source: UNIDO, 2007.
Agribusiness Liquidity Financing Has Become More Volatile
In recent years, most financial institutions in South Africa reported a dramatic reduction in liquidity in relation to agribusiness trade. To this end, global financial banks reports have indicated that the South African market management and regulatory bodies required a reduction in exposure to high-risk agricultural organizations. In fact, as self-liquidating trade financing has been depleted, most global commercial institutions were not able to restore their ‘‘lines’’ of transactions (Passikof 29). In this way, the effect of liquidity challenges in Southern African Development Community (SADC) market has affected agricultural financial system in South Africa as regional banks continue to report significant constraints in liquidity. For the last four years, agricultural import transactions have been inhibited by a reduction in the ever-changing tributary market instruments (Bezruchka 284).
However, measures such as Global Trade Liquidity Program (GTLP) together with various alternative liquidity provisions overturned these negative drifts to a considerable degree (Mataen 33). In fact, available research reports indicate that secondary agribusiness market for South Africa’s agricultural products has become stronger since 2010 (World Bank 20). Because of this situation, the demand for agricultural products is growing, but the pricing is losing ground for South African agricultural products (Jaffee 26). On the other hand, however, the current liquidity trends may have been overstated because, as things stand, the final demand for South African agricultural products remains inhibited in the export markets (Mhlanga 44).
While the demand by the Asian trade partners has been rebounding, such trends were comparatively insignificant for the country’s ‘‘traditional’’ market destinations. Moreover, since 2010, commercial banking institutions have raised challenges emanating from United States’ dollar liquidity (World Bank 4). Whereas such-like issues may have been addressed, the necessity associated with the dollar as an ‘‘asylum’’ monetary exchange unit in European countries caused a decrease in the value of the American currency obtainable for agribusiness financing options in South Africa.
In fact, according to a recent statistic, a grim picture is painted in relation to investments and outcomes of investment in agriculture (measured in dollars invested against frequencies).
The Real and Potential Roles of African Development Bank (AFDB) in the Context of South Africa’s International Agribusiness Trade
Based on the available research evidence, what evident is that AFDB has continues to play a critical role in reducing the unintended consequences of various trade crises that affect international agribusiness in South Africa. There are a number of well-thought-out measures that the AFDB has implemented to complement what the private sector is doing in terms of financing and marketing (Mataen 24). Overall, all of these measures were commenced by a low-slung preliminary investment and an improved understanding of international and local market needs.
However, the African Development Bank ought to partner with various institutions, such as the Asian Initiative (AI), to file agribusiness performance in South Africa within a certain time span (Jaffee 29). This way, South Africa’s agricultural firms will access the information needed to provide short-term exceptions to the policies relating to capital allocation and agribusiness assets (Mhlanga 59). Regardless of this reality, it should be noted that such trade registers are only beneficial upon becoming comprehensive and long-term in scope for commercial banks to evaluate the degree of risks in the trade finance markets (World Bank 27).
More importantly, small-scale agricultural institutions are more and more concentrating on modernizing efforts and seeking extra capital ventures. To this end, various agribusiness entities in South Africa are now seeking for short-term loans to enhance their accessibility to Export Credit Agencies (ECA) and related establishments (Mataen 38). In the international market, however, local banks have shown that limited finance facilities are available for small business enterprises (Jaffee 35). Because of this, AFDB has developed a small-business financial outcome registry to rekindle access of smaller exporters to put money into agricultural production and small importers access to investment sponsorships (Mataen 38).
International Agribusiness Market Trends for South African Food Products
The advent of a new consuming class among South Africa’s major trade partners influences agribusiness for all African countries (Bezruchka 285). However, while there are notably larger capital bases and more refined marketing tools for the South African agribusiness products, many companies are struggling to capture the international market to their desired levels (Passikof 29). Regardless, however, various emerging trends of marketing and their impacts cannot be reversed. They are elaborated as follows:
Varied Segmentation Measures for Domestic Relevance and Global Scale Trade
The many different measures aimed at developing high-growth opportunities and determining when agribusiness-consumers are likely to buy have not been adequate for South Africa. However, the multinational agribusiness companies operating within South Africa have continued to determine the modification processes for their products to appeal to their local needs and international tastes in a timely manner (World Bank 26)., The measures to understand consumption demographics and behavioral trends are being increasingly implemented in the country’s international business environments (Jaffee 27). In this sense, South African food companies are leveraging their products to suit different markets. In various ways, many food multinational organizations attempted to assess the variety of emerging consumers.
Today, the widely-recognized South African companies are, on a continuous basis, seeking ideas in the emerging markets within Africa and Asia as much as they focus on Europe and North America (Mataen 27). Like in many countries, South African emerging-market companies register a faster growth of patterns than the upcoming firms of the already-developed economies. These trends are demonstrated in the figure below.
Source: World Bank, 2007.
In retrospect, it appears that market trends for processed agricultural products in South Africa and other African countries are now more tailored around the dynamics of choices (Passikof 39). In many ways, this trend is anchored on the realities of postmodernism that attempts to build a culture of consumers being the drivers of decisions and processes that agribusiness-based manufacturers and distributors engage in (Jaffee 44). An evaluation of consumption trends in relation to postmodernism reveals increased purchasing trends among South Africa and its trading partners (Bezruchka 283). In both South Africa and Botswana, a number of supermarkets and department stores have cropped up in response to the higher demands for processed agricultural products.
Indeed, Jaffee has observed that one of the escalating habits in the modern society is that people have become to do much of their shopping in supermarkets with the arrival of convenience stores, and sometimes the choice of goods for agricultural products is based on how popular a brand is and not its value (39). Unsurprisingly, most people consume goods which have good brand names in Africa and elsewhere.
Trends of Brand Building and Metrics: A Focus on Food Products
The nature of consumers in emerging countries such as South Africa differs from those of already developed countries. This is due to the fact that average age of the major consumers of the emerging markets are much younger and more hopeful compared to those of the already developed markets in Europe and North America (Jaffee 34). To this extent, most African consumers continue to grapple with a variety of agricultural products and retail environments that do not offer the much needed stability. In the context of South African international agribusiness environment, marketing strategies have consistently changed in many ways (Hastings and Saperstein 24).
Unlike in Europe and America, very few studies have been done on the effects of brand tracking metrics in South African food producing companies. Because of this, the variations in marketing and sales processes for food products call for special attention in respect to their scope and market performances (Jaffee 34). More often, the marketing function has been under insurmountable pressure to take the leading role in business returns, yet measures to track marketing strategies have been limited by marketing metrics and measurement practices in most African countries, such as South Africa (Hastings and Saperstein 24).
Predictably, the realization of the significance of measurement in brand marketing metrics remains, at best, a bottleneck despite its role in international business. This assertion is not only relevant in product management today but has also been predominantly used in businesses (Jaffee 34). Conceivably, agricultural business organizations have not been sufficiently aware of their positions because of the trends of inadequate evaluation and consistency of their products (Bly 27). As a result, there seems to be a consensus on the role of brand tracking and marketing metrics in various industries including South Africa’s food sector (Grams 33). What remains contested is the degree to which businesses are taking the ‘‘notion’’ and the monitoring tools employed in international businesses (Carr 17). In South Africa, this problem is further compounded by only a few companies having adopted brand marketing metrics.
However, there are significant emerging trends in agricultural produce branding and measurement in South Africa. According to Hastings and Saperstein, various marketing strategies are now being employed by the Fast Moving Consumer Goods (FMCG) companies, including food processing firms, to enhance efficiency and dominance in local and international markets (45). Various companies have integrated various technologies and brand tracking techniques to ensure that marketing operations are sufficiently addressed (Hastings and Saperstein 24). Bly notes that there is no contention against the fact that brands have always been regarded as assessors and the determining factor of choice in ‘‘Business-to-Consumer’’ (66).
However, there is the common notion that places great emphasis on other factors of consumer choices and denies due consideration for ‘‘brand’’ measurement strategies for South African agricultural products. This is where one notices the gap and misconceptions of the role of brands in South Africa’s agribusiness trade. Accepting that the management of brands is tailored for different goods and services represented, brands should amount to a tolerance of their importance in agribusiness.
E-marketing and Digital Consumption Trends
The adoption of the Internet and computer-based technologies has led to the widespread application of e-marketing strategies by many organizations and individual business entities in South Africa and its neighbouring regions. For instance, various commentators predict a rise in the number of South Africa’s businesses with online presence and e-marketing tools within their websites in the next ten years. In the last few years, the creation of e-businesses has changed the methods employed by various South African agribusiness industries in their marketing efforts (Carr 18). Although this change is a manifestation of ‘‘democracy’’ in marketing, some companies face challenges in developing relevant and responsive e-marketing plans (Grams 31).
The effect of globalization in economics is more evident when the role of the Internet in changing trade practices is scrutinized. As the discovery of the Internet was pegged on the necessity to transmit information, trade remains one of its most important beneficiaries. Nicholas Carr notes that the process of carrying out market information research has become quicker (22). Progressively, it is becoming less necessary for traders to visit libraries and trade exhibitions to look for published pieces of information regarding goods and services.
Through different Internet search engines like Google, marketers and traders are able to get instant data on nearly all trade opportunities in different parts of the world (Free 12). Moreover, different online ‘‘communities’’ have formulated tutorials which enable South Africa’s agribusiness traders and companies to gain knowledge in commerce (Carr 23). An evaluation of South African e-marketing and digital consumption trends in the context of international agribusiness trade reveals improving outcomes.
E-Marketing Trends and Agribusiness in South Africa
A review of the major agribusiness companies’ websites and social network presence reveals that e-marketing concepts in the agricultural sectors in South Africa have been correlated with the strategies used in the tourism and hotel industries (Bly 6).The e-marketing strategies employed by firms target the four sets of a marketing ‘‘mix.’’ Researches carried out on online utilization of business slogans reveal that certain business slogans have improved the performance of various agricultural-based multinational organizations in South Africa (Hastings and Saperstein 24). This is due to the fact that today’s customers have the tendency to endear themselves to online business slogans that address their concerns.
In a sense, various business slogans for these multinational companies aim to boost the use of the websites by motivated clients and increase sales volumes of their products—both locally and internationally (Carr 28). Moreover, various e-marketing tools that continue to be applied by most of the South Africa’s agricultural firms are tailored around online-intelligent marketing strategies that raise customer-awareness just as it enhances the respective company’s online presence.
The questions that continue to be asked are the specific e-marketing strategies most applied in agribusiness in the context of South Africa. In many cases, the tactics that are repeatedly used include increased optimization of various companies’ websites and tracking measures to restructure information on such websites (Hastings and Saperstein 19). Besides, measures to increase the use of online space to enhance structure of agribusiness’ websites and other social media platforms are now employed by various agricultural firms. These include employing strategic plans to attract and maintain search engines (Bly 13). In the end, the expected outcomes in terms of ‘‘traffic’’ to heighten sales of agricultural products have been realized.
Another widely applied tactic is a careful selection of actors suitable for the e-marketing processes in South Africa’s agribusiness sector. Overall, the identification of the actors has been clear in stating the neutral-cooperative marketers and Information technology (IT) experts. These actors will identify the kind of online customers who are unfriendly, or otherwise (Hastings and Saperstein 19).
More critical are the measures aimed at enhancing the use of online-marketing ‘‘spaces’’ as agricultural marketing trends in South Africa. While most of these spaces are not owned by most individual agribusiness and allied companies, the ‘‘literature’’ inserted in such spaces is developed in accordance with international and regional demand for their products. In any event, various agricultural organizations have employed a number of public relations methodologies including the use of attractive language (Hastings and Saperstein 28). In this way, such companies continue to enhance their presence on social media platforms such as ‘‘Facebook’’ and other online marketing platforms (Mataen 27). In the case of Google, the marketing trends for most South African agricultural firms use ‘‘Ad sense’’ programs in putting up the required adverts (Bly 21). In addition, it is now common for most such companies to employ the use of community, promotional, advertising and content spaces.
Additional advertising space is now frequently used as online ‘‘quarters’’ where the companies buy ‘‘space’’ to display their agricultural products and programs aimed at attracting prospective consumers. In most case, these include the use of Gmail, google.com and blogs (Carr 38). On the other hand, ‘‘content’’ spaces employed by various companies such as Unilever-South Africa require well thought-out models (Hastings and Saperstein 40). To this extent, the marketing team for such companies widely employs external consultants to develop such contents. In the end, the use of the agricultural based companies’ websites are critical just as various search engines like ‘‘google.com’’ and portal directories continue to be heightened.
It is not surprising that the use of online community spaces in agribusiness has increased. These kinds of spaces have been viewed as groups where consumers ‘‘gather’’ to discuss various agricultural products (Carr 61). In addition, a robust use of promotional websites is now employed by various agribusiness multinationals operating in South Africa. These are often designed for the promotion of the respective companies’ names by using communication incentives (Hastings and Saperstein 39). However, the measures that offer financial incentives of buying products in specific promotional volumes are emerging.
In addition, well developed implementation strategies for agribusiness revolving around two main approaches will be used. Overall, the actions that have mostly been taken are usually classified into analytical, customer relationship management and communication measures. Today, most communication actions include ‘‘pop-up’’ online ads, immersive advertising as well as the use of email newsletters for product advertising (Larsen and Theus 37). An evaluation of major agribusiness-based multinationals operating in South Africa reveals a growing the use of adverts that respond to the frequent inquiries about agricultural products.
Moreover, additional use of analytics has been implemented by most companies in the last ten years (Hastings and Saperstein 42). Usually, these have involved optimization of various search engines to respond to the demands needed for an enhanced impact for South African products (Carr 61). To be specific there is a growing trend of shaping up various local agribusiness firms’ website content to increase the companies rankings on various search engines (Larsen and Theus 24). This way, the traditional methodologies of communication and marketing strategies are increasingly anchored and made complementary to the ongoing non-Internet marketing efforts.
Furthermore, the strategies for evaluating various e-marketing platforms are predominantly tailored around customer relationship managerial measures and e-marketing outcomes for agricultural products such as processed milk. Most agricultural firms that export their products through their communications platforms, have adapted to the required security templates (Larsen and Theus 39). These measures ensure that third-unauthorized parties do not have a privy to the information or actions these companies engage in. Also, a majority of evaluation processes focus on improved continuous brand-creation of ‘‘groups/likes’’ in social media platforms, such as Twitter and Facebook.
Beyond these strategies, most of the agribusiness-based websites or links attract press releases and other subsidiary online platform advertisements. In this way, these processes raise awareness among potential regional partners of South Africa and Asia (Hastings and Saperstein 43). More importantly, the number of progress evaluations is usually carried out to ascertain the extent to which some goals in agribusiness marketing succeed and the components which should be replicated. Taken together, the e-marketing strategies that are now employed by most agribusinesses in South Africa and its neighbours are useful in establishing strategic measures for capturing and maintaining the changing dynamics of today’s global operations (Larsen and Theus 13).
The Evolution of the Cellular Phone and Marketing of South Africa’s Agribusiness Products
In recent years, mobile companies have been involved in deploying mobile and ‘‘wireless solutions’’ to realize an expanded role of the cellular phone for its users. Much of the re-designing of such phones has been geared around the many technical and functional capabilities, such as product advertising and proficient communications relating to various agribusiness products. Recent researches suggest that the developments have partly been intended to promote reliability that improves efficiencies in the use of the cellular phones for product marketing. Indeed, the demand for mobile phones in South Africa has, as a result of such technological considerations, outshined that of landlines (Farley 463). In the end, what is clearly apparent is that evolution of the cellular phone into a multi-functional device has led to different trends for South Africa’s agricultural products.
Elvis Dahlman observed that, because various communication companies have been re-designing mobile phones to incorporate features such as networking and the use of the Internet, many South African agribusiness companies formulated digital marketing strategies for their products (9). Although most companies have not been able to evaluate the achievements of such endeavours, these developments continue to provide expertise in ‘‘next generation wireless technologies’’ needed for international agribusiness marketing both in Africa and elsewhere (Farley 463). Today, the use of Short Messages (SMS), Bluetooth and ‘‘WAP’’ in product advertising has provided new markets and increased sales volumes for various agribusiness companies in South Africa. Moreover, the use of equipments of modern mobile phones that enable quickly ‘‘broadband access’’ based on the services of ‘‘Internet Protocol (IP) continue to be used for agribusiness marketing purposes in South Africa” (Carr 77).
It appears that when one talks about cellular phone evolution, the term ‘‘wireless revolution’’ cannot be isolated. Tom Farley argues that due to wireless revolution is common in recent times, cellular phones and ‘‘Personal Digital Assistants (PDA)’’ are mutating into tools of transmitting information (464). The changes that are brought about by wireless revolution are evident in modern phones’ function to combine data, browse various websites, and transmit emails. In addition, they have become ‘‘personal organizers’’ for most users and enhanced agribusiness e-marketing across the world. Perhaps it is for these reasons that a number of imaginative players in the communication industry seem to agree that cell phones have become smarter for emerging agricultural companies (Dahlman 18).
However, cellular phone evolution means that more sophisticated systems are incorporated into the gadgets. According to Dahlman, mobile computing often needs extra system of management for agribusiness advertising, because most African consumers are usually detached and ‘‘remote’’ when it comes to a new technology (20). More often than not, new cellular phones supply mechanisms necessitate for appropriate connection, let alone requiring that consumers be clued-up about its availability (Bly 21). Despite these negativities, modern cellular phones have striking features and potential that has increased agribusiness trade volume in South Africa and its neighbouring trade partners (Farley 464).
Credit Card Consumption Trends in South Africa and the Neighbouring Countries
To a large extent, the nature of consumptions of various agricultural products in the contemporary society depends on an individual’s social status. The emergence of the credit cards has changed the manner in which agribusiness goods are consumed and marketed in South Africa and within its trade-blocks (Grams 13). Just like in the developed countries, consumers tend to be measured and evaluated by consumption patterns in South Africa. More interesting, however, is that the use of credit cards has surged more due to brands and not needs of various goods including agricultural products (Bly 24).
For an increasing number of South Africans, who cannot immediately afford certain products, credit cards come in handy whenever a brand seems to be appealing. In a sense, credit cards have become trade instruments that enhance the ‘‘consumer society’’ for agribusiness in South Africa (Grams 14). Their usage implies that the urban and international consumers can now live beyond their means.
Overall, credit cards have promoted luxury consumption that defines consumer purchases in today’s South Africa (Bly 29). In sum, private vis-à-vis public consumption of agricultural goods and services has changed over the years in South Africa. Ultimately, of course, the motivation to sell and use new goods today determines public agricultural infrastructure and goods (Grams 26). Because both private and public options are obtainable, consumer choices are increasingly enhanced and it is only those companies that package their brands well enough that carry the day in the context of South African agribusiness “appetites’’(Bly 31).
Conclusion
Based on the findings of this paper, a number of conclusions can be drawn. One, agribusiness trade for many emerging countries are driven by the ever-changing marketing trends, competitive advantage issues, as well as finance options. Two, in the face of the present global demands, various agricultural institutions and countries such as South Africa must develop measures of international alliances to achieve competitive advantages for their agricultural products.
The growing relevance of the Internet and computer-based technologies in agribusiness is unlikely to be reversed. The scope and demands of today’s lifestyles and market demands, which have been heightened by advanced information technological discoveries and the widespread use of the Internet have made e-marketing and ‘‘digital’’ agribusiness growth a reality for South Africa. Based on the extent to which technology and global trends are developed, the Internet is more instrumental in today’s international agribusiness processes for many countries, including South Africa. Furthermore, the nature of consumers in emerging countries such as South Africa differs from those of already developed countries.
This trend has been compounded by the average age of the major consumers of the emerging markets being much younger and more optimistic. Finally, while South Africa is well above other African countries, it appears it cannot mobilize resources and the required capacity to sustain international agribusiness competitiveness.
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