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PARTNERING BETWEEN PRIMARY AGRICULTURAL CO-OPERATIVES AND FOOD RETAIL COMPANIES IN SOUTH AFRICAApril 11th, 2019
This study aimed to investigate partnering between primary agricultural co-operatives (PACs) and food retail companies (FRCs) in South Africa. The South African government views co-operatives as important vehicles for alleviating poverty, and encouraging equity and greater participation by Blacks, particularly communities from rural areas in South Africa. However, PACs throughout the world are facing major challenges as they respond to a more industrialised agriculture, globalisation, and freer trade, and the failure rate of PACs in South Africa is very high. Although some FRCs have a policy of sourcing local goods and supporting local producers, wherever possible, this, however, is balanced with consumer expectations of value, quality and price. As a result of the latter, FRCs tend to source the majority of the agricultural produce from large-scale commercial producers instead of PACs.
