THE IMPACT OF DIFFERENT MACRO-ECONOMIC VARIABLES ON THE OPTIMAL DISTRIBUTION OF BEEF IN THE SOUTHERN AFRICAN CUSTOMS UNION

~is _Pa~er analyzed the impact of different conditions affecting prices, portrayed by means of scenarios, on the optimal dts~butJonal pattern of beef. The effects ofliberalized beef trade in the SACU is quantified in this paper. The focus is on regional supply and demand and the effect of world prices and tariffs on beef trade in the SACU is estimated. This is deemed essential due to the changing marketing environment domestically and abroad. In the absence of a tariff on beef imports, a decline of approximately 14 per cent in the domestic price is necessary to clear the market. Efficiency in the beef industry will have to increase significantly if beef producers are to compete with nonSACU members. The decen~al~tion of the beef industry ~ol~s v~ous advantages, especially if the desperate need to create employment opportunities in rural areas, the skew distribution of income and the poverty level in rural areas is considered. Existing infrastructure's sustainability should be market driven