A STATISTICAL ANALYSIS OF THE DEMAND FOR MAIZE IN SOUTH AFRICA

Abstract

ABSTRACT In a dynamic economic situation, decisions concerning price, promotion, distribution, production and product policy must be made almost continually. Ample knowledge and information, amongst others, of various demand factors are necessary for the composition and maintenance of an efficient marketing strategy. Only then is there a thorough base for business control, strategic planning and forecasting. In this study it was endeavoured to determine some characteristics of the demand for maize in South Africa. Several important coefficients, for example price elasticity, income elasticity and cross-elasticity of the total demand for maize as well as that of individual components thereof, were calculated. These coefficients should provide useful and almost indispensable information concerning the effects of price changes, and mutual substitution and complementarity.