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For example, in 2011, Australian producers had a comparative

advantage over South African producers.

In that year, each Australian wheat producer grew twice as

much or a 100% greater volume of wheat than that produced by

each South African producer. This comparative advantage has

continued to the present. It has led to them being more profitable

because on average, each grower was able to spread their over-

head costs over a much larger tonnage of output.

References

Australian Bureau of Agriculture and Resources (2011). Farm sizes and number of

wheat producers in Australia; Government of Australia, Canberra, Australia.

Australian Bureau of Agriculture and Resources and Sciences (2014). Agricultural

commodities; Australian Government Department of Agriculture, Canberra,

Australia.

Department of Agriculture, Forestry and Fisheries (2012). Wheat market value chain

profile; Pretoria, South Africa.

Department of Agriculture, Forestry and Fisheries (2013). Trends in the agricultural

sector; Pretoria, South Africa.

Graph 8: Gross revenue in rand per hectare for wheat compared with maize and soybean in absolute annual and linear terms between 1995 and 2014.

Source: BFAP, 2014