Effects of Statutory Measures on the Performance of South African Pork Industry: Error Correction Model Approach
Copyright © 2026 Solly Molepo, Lucas Moswane, Joseph Kau, Buhlebemvelo Dube, Mamakie Lungwana, Nele Mabhunu, Matsobane Mpyana, Victor Thindisa. Published by Nan Yang Academy of Sciences Pte. Ltd.
This is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.
Abstract
The study examines the impact of statutory measures, with particular emphasis on statutory levies, on the performance of the South African pork industry over the period 2010–2024. Using time series data, the paper evaluates how levy income relates to key indicators of industry performance, including gross value of production, total output, exports, per capita consumption, and imports. The results reveal a stable long-run relationship between statutory income and core industry fundamentals. Levy income is positively and significantly associated with production growth, export expansion, rising domestic consumption, and increases in the gross value of pork production. In contrast, imports exert a negative influence in the short run, suggesting that external competition can weaken domestic levy capacity and industry financing. Overall, the findings demonstrate that statutory levies in the pork industry function not merely as revenue instruments, but as integrated policy tools that reinforce value chain coordination, biosecurity investment, and export readiness. From a policy perspective, the study highlights the need to strengthen the strategic use of levy funds, improve the responsiveness of statutory mechanisms, protect the integrity of the domestic industry against import-related pressures, and align levy expenditure more closely with the objectives of the South African Agriculture and Agro-processing Master Plan, particularly with respect to export diversification and inclusive industry development.
Keywords: South African Pork Industry, Augmented Dickey-Fuller (ADF) Test, Bound Test, Autoregressive Distributed Lags (ARDL Model), Error Correction Model (ECM) Model
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