Are Malawi S Maize And Soya Trade Restrictions Causing More Harm Than Good

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Are Malawi S Maize And Soya Trade Restrictions Causing More Harm Than Good
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Author : Edelman, Brent
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2016-06-24
Are Malawi S Maize And Soya Trade Restrictions Causing More Harm Than Good written by Edelman, Brent and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016-06-24 with Political Science categories.
Since the early 2000s, the government of Malawi has used trade restrictions, export bans in particular, to control trade flows for maize and soya, among other crops. Maize export bans, justified in the name of national food security, have been in place more or less continuously since 2005, with the ban lifted temporarily in 2007-08 and 2009-11. Export bans on soya, used to benefit domestic vegetable oil processors and the poultry industry in the form of lower input prices, were imposed several times for a few months at a time between 2010 and 2012. In 2013, government scrapped soya export bans as a trade policy tool, but since 2015 has explored other measures to limit soya exports, including an export levy and a mandate that all soya exports be processed through a single trading company.
Structure Conduct And Performance Of Maize Markets In Malawi
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Author : Ochieng, Dennis O.
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2019-08-21
Structure Conduct And Performance Of Maize Markets In Malawi written by Ochieng, Dennis O. and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-08-21 with Political Science categories.
Seasonal analysis of the structure, conduct, and performance (SCP) of markets for staple crops has received relatively little attention in food policy analysis yet it has important implications for food and nutrition security. This study employs a mixed methods approach to analyze the SCP of maize markets in Malawi in the 2018/19 main harvest and lean seasons. We interviewed 749 traders from 74 markets across 8 districts, held 28 focus group discussions (FGD) with a total of 480 farmers and analyzed daily and weekly price data from 13 regional markets. The structure of maize markets was explored by examining marketing channels, barriers to entry and the competitiveness of different tiers of the marketing chain. Inequality in sales revenues, switches in trader types between seasons, quality and weights standardization, and the behavior of traders were used to examine market conduct. Performance was assessed by examining traders’ costs and margins, and the spatial and temporal integration of maize markets. We find that Malawi’s maize market is pyramidal in structure and highly competitive at lower tiers of trade but ‘oligopolistic’ at higher tiers. The market channels vary across seasons with switches between trader types and instances of rural-urban trade reversals. There is considerable inequality of sales revenues among traders of similar capacities, and a widespread lack of structured trading despite existing institutions. A high ratio of marketing costs to revenue suggests marketing inefficiencies. Malawi maize prices were highly seasonal and more volatile than neighboring countries. In contrast to previous studies, our findings show weak spatial integration of markets and slow price adjustments to long-run equilibrium values even among short-distance market pairs. The study highlights five pathways to improving Malawi’s maize marketing system: (1) increased policy predictability to promote private-sector investment; (2) institutionalization of quality grades and standardization of weights and measures; (3) increased commercialization of smallholder maize production; (4) investment in enabling infrastructure; and (5) the promotion of structured trading.
Market Information And Access To Structured Markets By Small Farmers And Traders Evidence From An Action Research Experiment In Central Malawi
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Author : Ochieng, Dennis O.
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2020-03-12
Market Information And Access To Structured Markets By Small Farmers And Traders Evidence From An Action Research Experiment In Central Malawi written by Ochieng, Dennis O. and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020-03-12 with Political Science categories.
Small farmers and traders often lack the market information they need to earn the most from their crop sales. This paper analyzes the effects of an action research experiment in central Malawi, in which four groups of smallholder farmers were provided with maize and soybean price information from a local commodity exchange during the 2019 marketing season, while four other groups of smallholder farmers did not receive this information. Using data from a panel survey of 399 farmers and 78 traders conducted before and after the main marketing season and using kernel propensity score matching approach to account for possible differences between the treated and non-treated farmers, we estimate the effects of the intervention on a number of outcome indicators. A before versus after analysis was also employed to evaluate changes in traders’ marketing outcomes. We find positive but statistically insignificant effects on maize and soybean selling prices, sales through structured markets and levels of commercialization after the intervention. We also find a negative and statistically significant effect on the quantity of maize sold by farmers, suggesting paradoxically that providing farmers with price information reduced their sales volumes. The proportion of traders aware of structured markets and their share of sales through structured markets also increased significantly after the intervention. The quantity of maize sold by traders as well as the selling prices for maize and soy-bean also increased significantly, although this may be due to factors other than the intervention. The study concludes that provision of price information alone is not enough to facilitate small farmers’ and traders’ use of structured markets. Greater effort is needed to sensitize farmers and traders on the quality and quantity requirements as well as the operations of structured markets.
The State Of Food Insecurity In The World 2011
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Author : Food and Agriculture Organization of the United Nations
language : en
Publisher: UN
Release Date : 2011-12-30
The State Of Food Insecurity In The World 2011 written by Food and Agriculture Organization of the United Nations and has been published by UN this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-12-30 with Business & Economics categories.
The State of Food Insecurity in the World 2011 highlights the differential impacts that the world food crisis of 2006-08 had on different countries, with the poorest being most affected. While some large countries were able to deal with the worst of the crisis, people in many small import-dependent countries experienced large price increases that, even when only temporary, can have permanent effects on their future earnings capacity and ability to escape poverty. This year's report focuses on the costs of food price volatility, as well as the dangers and opportunities presented by high food prices. Climate change and an increased frequency of weather shocks, increased linkages between energy and agricultural markets due to growing demand for biofuels, and increased financialization of food and agricultural commodities all suggest that price volatility is here to stay. The report describes the effects of price volatility on food security and presents policy options to reduce v
The New York Times Index
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Author :
language : en
Publisher:
Release Date : 2005
The New York Times Index written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with Indexes categories.
Africa Research Bulletin
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Author :
language : en
Publisher:
Release Date : 1992
Africa Research Bulletin written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1992 with Africa categories.
Bibliography Of Agriculture
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Author :
language : en
Publisher:
Release Date : 1990
Bibliography Of Agriculture written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1990 with Agriculture categories.
Bibliography Of Agriculture
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Author :
language : en
Publisher:
Release Date : 1990-11
Bibliography Of Agriculture written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1990-11 with Agriculture categories.
Achieving Food Security And Industrial Development In Malawi
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Author : Aragie, Emerta
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2016-07-12
Achieving Food Security And Industrial Development In Malawi written by Aragie, Emerta and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016-07-12 with Political Science categories.
Restrictions on exports of staples or cash crops are frequently imposed in developing countries to promote food security or industrial development goals. By diverting production to the local market, these policies aim to reduce prices and increase the supply of food or intermediate inputs to the benefit of consumers or downstream industrial users. Although export restrictions reduce aggregate welfare, they are attractive to policymakers: Governments gain support when they are seen to keep consumer prices low; likewise, politicians are swayed by industrial lobbyists who promise increased value-addition in exchange for access to cheaper inputs. This study weighs in on the debate around the desirability of export restrictions by simulating the economy-wide effects of Malawi’s longstanding maize export ban as well as a pro-posed oilseed export levy intended to raise value-addition in processing sectors. Our results show that, while export restrictions may have the desired outcome in the short run, producers respond to weakening market prospects in the longer run by restricting supply, often to the extent that the policies become self-defeating. Specifically, maize export bans only benefit the urban non-poor, while poor farm households experience income losses and reduced maize consumption in the long run. The oilseed export levy is equally ineffective: Even when export tax revenues are used to subsidize processors, gains in industrial value-addition are outweighed by declining agricultural value-addition as production in the fledgling oilseed sector is effectively decimated. The policy is further associated with welfare losses among rural households, while urban non-poor households benefit marginally.