Market Information And Access To Structured Markets By Small Farmers And Traders Evidence From An Action Research Experiment In Central Malawi Synopsis

Author : Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob
Publisher : Intl Food Policy Res Inst
Page : 4 pages
File Size : 40,5 Mb
Release : 2020-03-03
Category : Political Science
ISBN : 8210379456XXX

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Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in Central Malawi: Synopsis by Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob Pdf

Structured markets are organized platforms where economic agents such as farmers, traders, processors and financial institutions enter transparent and legal trading and financial arrangements (East Africa Grain Council 2013). Structured markets are important for the stabilization of volumes and prices of agricultural commodities (Hernandez et al. 2017) and diversification of foreign exchange earnings (Edelman et al. 2014). If supported by export mandates, structured markets for cereals and legumes could also limit informal cross-border trade and increase agricultural exports (Government of Malawi 2016). They could potentially also provide better statistics on volumes traded to aid in the planning, production, and marketing of crops in Malawi (Baulch and Gondwe 2017).

Author : Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob
Publisher : Intl Food Policy Res Inst
Page : 27 pages
File Size : 55,5 Mb
Release : 2020-03-12
Category : Political Science
ISBN : 8210379456XXX

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Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi by Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob Pdf

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.

Author : Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob
Publisher : Intl Food Policy Res Inst
Page : 63 pages
File Size : 47,5 Mb
Release : 2019-08-21
Category : Political Science
ISBN : 8210379456XXX

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Structure, conduct and performance of maize markets in Malawi by Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob Pdf

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.

Author : Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob
Publisher : Intl Food Policy Res Inst
Page : 4 pages
File Size : 41,5 Mb
Release : 2019-08-29
Category : Political Science
ISBN : 8210379456XXX

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Structure, conduct and performance of maize markets in Malawi: Synopsis by Ochieng, Dennis O.,Botha, Rosemary,Baulch, Bob Pdf

This policy note summarizes Working Paper 29 (Ochieng et al., 2019), which investigates the SCP of Malawi’s maize market during the 2018/19 main marketing and lean seasons and provides policy suggestions on how to improve Malawi’s maize marketing system.

Author : Baulch, Bob,Gross, Adam,Nkhoma, Justice Chimgonda,Mtemwa, Chikumbutso
Publisher : Intl Food Policy Res Inst
Page : 39 pages
File Size : 47,8 Mb
Release : 2018-11-08
Category : Political Science
ISBN : 8210379456XXX

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Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets by Baulch, Bob,Gross, Adam,Nkhoma, Justice Chimgonda,Mtemwa, Chikumbutso Pdf

This study examines the landscape in which Malawi’s two agricultural commodity exchanges (Comex) and warehouse receipts systems (WRS) operate and makes recommendations on how to improve their performance and benefits to key stakeholders. A mixed methods approach was adopted, involving semi-structured interviews with key market participants, compilation and analysis of secondary data from Malawi and other African Comex, and a review of existing literature. A review of international experience indicates that historically Comex often develop hand-in-hand with warehouse receipt systems (WRS), which help stimulate demand from off takers for standardized contracts while providing financing that increased volumes traded. In recent years, electronic trading platforms have given an impetus to the consolidation of existing Comex, and the development of regional networks of exchanges and warehousing arrangements. Nonetheless, a common reason why Comex fail is that they do no attract sufficient trading volumes to pay for their operating costs. This is often associated with default on contracts and fears of the market for commodities being cornered by a few larger traders. Of the 23 Comex in Africa, over half are still in their planning or inception stages and, with the notable exception of the agricultural futures and options traded on the Johannesburg Stock Exchange, most of the remaining Comex are thinly traded and receive financial support from government and/or donors.

Author : Andrew Shepherd,Food and Agriculture Organization of the United Nations
Publisher : Food & Agriculture Org.
Page : 80 pages
File Size : 43,9 Mb
Release : 1997
Category : Agriculture
ISBN : 925103964X

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Market Information Services by Andrew Shepherd,Food and Agriculture Organization of the United Nations Pdf

Author : Marcel Fafchamps
Publisher : Unknown
Page : 68 pages
File Size : 53,8 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290704563

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Agricultural Markets in Benin and Malawi by Marcel Fafchamps Pdf

Surveys of the operation of agricultural traders in two Sub-Saharan African countries suggest that their performance would benefit from policies aimed at increasing their asset base, reducing transaction risk, promoting more sophisticated business practices, and reducing physical marketing costs.Drawing on original surveys of agricultural traders, Fafchamps and Gabre-Madhin examine how traders operate in two Sub-Saharan African countries, Benin and Malawi. They find the following:- The largest transaction costs for traders are search and transport. Search methods rely principally on personal visits by the trader, which raises search costs. And since enterprises are very small, transport represents a large share of marketing costs.- Brand recognition, grading, and quality certification are nonexistent.- Brokers and agents are not organized in commodity exchanges.- Quantities are not pooled for transport and storage so as to achieve returns to scale.- Interseasonal and interregional arbitrage is not feasible for most traders, who prefer to operate day to day in a small territory.This information provides some important insights into how agricultural trade could be improved. It suggests possible policy interventions in four main areas: increasing traders' asset base, reducing transaction risk, promoting more sophisticated business practices, and reducing physical marketing costs.This paper - a product of Rural Development, Development Research Group - is part of a larger effort in the group to understand the operation of commodity markets in rural areas. The study was funded by the Bank's Research Support Budget under the research project quot;Markets for Agricultural Inputs in Sub-Saharan Africaquot; (RPO 683-48). The authors may be contacted at [email protected] or [email protected].

Author : Ochieng, Dennis O.
Publisher : Intl Food Policy Res Inst
Page : 4 pages
File Size : 52,9 Mb
Release : 2020-04-09
Category : Political Science
ISBN : 8210379456XXX

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Towards designing better contracts: Assessing contract preferences of small farmers and buyers: Evidence from a choice experiment in cotton and tea schemes in Malawi: Synopsis by Ochieng, Dennis O. Pdf

While contract farming provides opportunities to link smallholder farmers to markets, its sustainability depends on how the interests of both farmers and buyers are addressed. Previous studies analyze farmers’ preferences for contracts, but buyers’ preferences for contracts and design attributes are hardly examined. The author contributes to the knowledge gap by analyzing farmers’ and buyers’ preferences for contracts and design attributes, and the similarities and differences in preferences using a discrete choice experiment with 505 cotton farmers and 512 tea farmers in southern Malawi.

Author : Ochieng, Dennis O.,Baulch, Bob
Publisher : Intl Food Policy Res Inst
Page : 15 pages
File Size : 50,5 Mb
Release : 2020-10-08
Category : Political Science
ISBN : 8210379456XXX

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Report on a study to crowdsource farmgate prices for maize and soybeans in Malawi by Ochieng, Dennis O.,Baulch, Bob Pdf

This report summarizes the findings from an innovative study to collect the prices that farmers received for maize and soybeans during the 2020 main marketing season in Malawi. Between April and July, whenever they sold maize or soybeans, farmers were asked to report the prices they received by calling or texting a toll-free number managed by Farm Radio Trust. Reported prices were then compared to the minimum farmgate prices set by the Ministry of Agriculture and Food Security. Our findings show that 75 percent of maize farmers and 90 percent of soybean farmers sold their crops below the official minimum farmgate prices. On average, prices received by these farmers were approximately three-quarters of official minimum farmgate prices.

Author : Van Campenhout, Bjorn,Nabwire, Leocardia
Publisher : Intl Food Policy Res Inst
Page : 22 pages
File Size : 42,7 Mb
Release : 2024-05-17
Category : Political Science
ISBN : 8210379456XXX

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Seasonality and smallholder market participation in Malawi: A baseline report by Van Campenhout, Bjorn,Nabwire, Leocardia Pdf

Smallholder farmers in low and middle income countries often sell the bulk of their marketable surplus immediately after the harvest, when prices are at their lowest. As part of a field experiment that tests the effectiveness of both income and expenditure planning to nudge farmers into delaying sales of cash crops, we collected detailed information about market participation from a sample of about 3,500 semi-subsistence farmers in Malawi. In this report, we use this data to describe the situation at baseline, before the intervention was implemented. The focus is on three crops that are (also) important to obtain cash. We provide a detailed account of sales transactions in 2021 and also inquire about price expectations in the near future. We also provide suggestive evidence that prices obtained in the past influence price expectations.

Author : Andrew Shepherd
Publisher : Food & Agriculture Org.
Page : 82 pages
File Size : 48,8 Mb
Release : 2007
Category : Agriculture
ISBN : 9251057214

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Approaches to linking producers to markets by Andrew Shepherd Pdf

Author : Nigel Poole
Publisher : Unknown
Page : 198 pages
File Size : 51,9 Mb
Release : 2017
Category : Electronic
ISBN : 1780449402

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Smallholder Agriculture and Market Participation by Nigel Poole Pdf

Author : Food and Agriculture Organization of the United Nations
Publisher : Food & Agriculture Org.
Page : 210 pages
File Size : 45,8 Mb
Release : 2018-08-09
Category : Technology & Engineering
ISBN : 9781853399411

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Smallholder Agriculture and Market Participation by Food and Agriculture Organization of the United Nations Pdf

Smallholder Agriculture and Market Participation discusses the evolution of policies for smallholder development, including the role of value chains, and the linkages that exist with the Sustainable Development Goals. New, innovative financial mechanisms and linked initiatives are outlined, and their potential to improve the availability of financial services and reduce market transaction costs. Risk management for agricultural smallholders is covered, together with the increasing role of insura nce as a mechanism for risk management among smallholders. Empirical data are used to illustrate the more conceptual work. The last part of the book provides case studies of selected commodity value chain investments involving smallholders in Africa (Ethiopia, Tanzania and Zimbabwe) and South America (Peru), implemented by FAO. The lessons concern project design and targeting, product and market analysis, regulatory issues, sustainability and improved natural resources management.

Author : Eleni Zaude Gabre-Madhin
Publisher : Intl Food Policy Res Inst
Page : 116 pages
File Size : 53,6 Mb
Release : 2001-01-01
Category : Business & Economics
ISBN : 9780896291263

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Market Institutions, Transaction Costs, and Social Capital in the Ethiopian Grain Market by Eleni Zaude Gabre-Madhin Pdf

This report addresses the overarching question regarding the role of institutions in enhancing market development following market reforms. It uses the New Institutional Economics framework to empirically analyze the role of a specific market institution, that of brokers acting as intermediaries to match traders in the Ethiopian grain market in reducing the transaction costs of search faced by traders. Brokers play a key role in facilitating exchange in a weak marketing environment where limited public market information, the lack of grain standardization, oral contracts, and weak legal enforcement of contracts increase the risk of contract failure. Relying on primary data, it analyzes traders' microeconomic behavior, social capital, the nature and extent of their transaction costs, and the norms and rules governing the relationship between brokers and traders.The study uses an innovative approach to quantify the costs of search and demonstrates that the brokerage institution is economically efficient both for individual traders and for global economic welfare.

Author : Tanguy Bernard,Spielman, David J.,Seyoum Taffesse, Alemayehu,Gabre-Madhin, Eleni Zaude
Publisher : Intl Food Policy Res Inst
Page : 104 pages
File Size : 40,9 Mb
Release : 2010
Category : Business & Economics
ISBN : 9780896291751

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Cooperatives for Staple Crop Marketing by Tanguy Bernard,Spielman, David J.,Seyoum Taffesse, Alemayehu,Gabre-Madhin, Eleni Zaude Pdf

Rural producer organizations (RPOs), such as farmers' organizations or rural cooperatives, offer a means for smallholder farmers in developing countries to sell their crops commercially. RPOs hold particular promise for Sub-Saharan Africa, where small-scale farming is the primary livelihood but commercialization of food crops is very limited. Using the experience of smallholders in Ethiopia as a case study, this research monograph identifies the benefits of RPOs for small farmers, as well as the conditions under which such organizations most successfully promote smallholder commercialization. The evidence from Ethiopia indicates that RPOs do increase farmers' profits from crop sales, but that the beneficiaries do not tend to be the poorest smallholders. Moreover, an RPO's marketing effectiveness is precarious: it can easily diminish if the number or diversity of its members increases or if it provides more non-marketing services. The authors conclude that RPOs have a role to play in the agricultural development of Sub-Saharan Africa, but that role should be complemented by other programs that directly target the poorest farmers. Further, the effectiveness of RPOs should be preserved by allowing them to follow their own agendas rather than being encouraged to take on non-marketing activities. The assessment of RPOs presented in this monograph should be a valuable resource for policymakers and researchers concerned with economic development and poverty reduction in Sub-Saharan Africa.