Are Malawi’s maize and soya trade restrictions causing more harm than good?

Are Malawi’s maize and soya trade restrictions causing more harm than good?

Author: Edelman, Brent

Publisher: Intl Food Policy Res Inst

Published: 2016-06-24

Total Pages: 4

ISBN-13:

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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.


Book Synopsis Are Malawi’s maize and soya trade restrictions causing more harm than good? by : Edelman, Brent

Download or read book Are Malawi’s maize and soya trade restrictions causing more harm than good? written by Edelman, Brent and published by Intl Food Policy Res Inst. This book was released on 2016-06-24 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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

Structure, conduct and performance of maize markets in Malawi

Author: Ochieng, Dennis O.

Publisher: Intl Food Policy Res Inst

Published: 2019-08-21

Total Pages: 63

ISBN-13:

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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.


Book Synopsis Structure, conduct and performance of maize markets in Malawi by : Ochieng, Dennis O.

Download or read book Structure, conduct and performance of maize markets in Malawi written by Ochieng, Dennis O. and published by Intl Food Policy Res Inst. This book was released on 2019-08-21 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Embracing political economy to enhance policy influence: Lessons from PIM research

Embracing political economy to enhance policy influence: Lessons from PIM research

Author: Resnick, Danielle

Publisher: Intl Food Policy Res Inst

Published: 2021-06-16

Total Pages: 11

ISBN-13:

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An overarching goal of the CGIAR Research Program on Policies, Institutions, and Markets (PIM) has been to influence policy outcomes in ways that lead to agricultural transformation and economic inclusion. The technical quality of this research is well recognized (CAS Secretariat 2020). Yet, high-quality, rigorous research is not sufficient to achieve policy influence in any domain. Other factors may shape policy uptake — for instance, elections may alter policy priorities, ideological biases may hinder the acceptance of research findings, and vested interest groups may lobby against data-driven or evidence-informed recommendations. A political economy perspective allows for a more holistic and realistic understanding of how policies are determined by governments and which pathways are more viable for achieving development outcomes through policy change.


Book Synopsis Embracing political economy to enhance policy influence: Lessons from PIM research by : Resnick, Danielle

Download or read book Embracing political economy to enhance policy influence: Lessons from PIM research written by Resnick, Danielle and published by Intl Food Policy Res Inst. This book was released on 2021-06-16 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: An overarching goal of the CGIAR Research Program on Policies, Institutions, and Markets (PIM) has been to influence policy outcomes in ways that lead to agricultural transformation and economic inclusion. The technical quality of this research is well recognized (CAS Secretariat 2020). Yet, high-quality, rigorous research is not sufficient to achieve policy influence in any domain. Other factors may shape policy uptake — for instance, elections may alter policy priorities, ideological biases may hinder the acceptance of research findings, and vested interest groups may lobby against data-driven or evidence-informed recommendations. A political economy perspective allows for a more holistic and realistic understanding of how policies are determined by governments and which pathways are more viable for achieving development outcomes through policy change.

Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi

Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi

Author: Ochieng, Dennis O.

Publisher: Intl Food Policy Res Inst

Published: 2020-03-12

Total Pages: 27

ISBN-13:

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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.


Book Synopsis 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.

Download or read book 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 published by Intl Food Policy Res Inst. This book was released on 2020-03-12 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Achieving food security and industrial development in Malawi

Achieving food security and industrial development in Malawi

Author: Aragie, Emerta

Publisher: Intl Food Policy Res Inst

Published: 2016-07-12

Total Pages: 20

ISBN-13:

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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.


Book Synopsis Achieving food security and industrial development in Malawi by : Aragie, Emerta

Download or read book Achieving food security and industrial development in Malawi written by Aragie, Emerta and published by Intl Food Policy Res Inst. This book was released on 2016-07-12 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Food Price Volatility and Its Implications for Food Security and Policy

Food Price Volatility and Its Implications for Food Security and Policy

Author: Matthias Kalkuhl

Publisher: Springer

Published: 2016-04-12

Total Pages: 626

ISBN-13: 3319282018

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This book provides fresh insights into concepts, methods and new research findings on the causes of excessive food price volatility. It also discusses the implications for food security and policy responses to mitigate excessive volatility. The approaches applied by the contributors range from on-the-ground surveys, to panel econometrics and innovative high-frequency time series analysis as well as computational economics methods. It offers policy analysts and decision-makers guidance on dealing with extreme volatility.


Book Synopsis Food Price Volatility and Its Implications for Food Security and Policy by : Matthias Kalkuhl

Download or read book Food Price Volatility and Its Implications for Food Security and Policy written by Matthias Kalkuhl and published by Springer. This book was released on 2016-04-12 with total page 626 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides fresh insights into concepts, methods and new research findings on the causes of excessive food price volatility. It also discusses the implications for food security and policy responses to mitigate excessive volatility. The approaches applied by the contributors range from on-the-ground surveys, to panel econometrics and innovative high-frequency time series analysis as well as computational economics methods. It offers policy analysts and decision-makers guidance on dealing with extreme volatility.

Why Has Africa Become a Net Food Importer

Why Has Africa Become a Net Food Importer

Author: Manitra A. Rakotoarisoa

Publisher: John Donald

Published: 2011

Total Pages: 85

ISBN-13: 9789251070888

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Book Synopsis Why Has Africa Become a Net Food Importer by : Manitra A. Rakotoarisoa

Download or read book Why Has Africa Become a Net Food Importer written by Manitra A. Rakotoarisoa and published by John Donald. This book was released on 2011 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Malawi

Malawi

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2012-08-03

Total Pages: 291

ISBN-13: 1475509073

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The Malawi Growth and Development Strategy II (MGDS-II) is a poverty reduction strategy for the period 2006–11, which is aimed at fulfilling Malawi’s future developmental aspiration—Vision 2020. The strategy identifies broad thematic areas and key priority areas to bring about sustained economic growth. A striking feature of this strategy is that the various governmental organizations, private sector, and general public are equal stakeholders. However, successful implementation of MGDS-II will largely depend on sound macroeconomic management and a stable political environment.


Book Synopsis Malawi by : International Monetary Fund

Download or read book Malawi written by International Monetary Fund and published by International Monetary Fund. This book was released on 2012-08-03 with total page 291 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Malawi Growth and Development Strategy II (MGDS-II) is a poverty reduction strategy for the period 2006–11, which is aimed at fulfilling Malawi’s future developmental aspiration—Vision 2020. The strategy identifies broad thematic areas and key priority areas to bring about sustained economic growth. A striking feature of this strategy is that the various governmental organizations, private sector, and general public are equal stakeholders. However, successful implementation of MGDS-II will largely depend on sound macroeconomic management and a stable political environment.

Trade Policy and Food Security

Trade Policy and Food Security

Author: Amir Fouad

Publisher: World Bank Publications

Published: 2015

Total Pages: 0

ISBN-13: 9781464803055

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Increased trade integration holds considerable potential to stabilize food prices, boost returns to farmers, and reduce the prices faced by consumers. This book explores the effects of food price changes on economic welfare in developing countries, and how these can be mitigated through appropriate national policies at the border.


Book Synopsis Trade Policy and Food Security by : Amir Fouad

Download or read book Trade Policy and Food Security written by Amir Fouad and published by World Bank Publications. This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Increased trade integration holds considerable potential to stabilize food prices, boost returns to farmers, and reduce the prices faced by consumers. This book explores the effects of food price changes on economic welfare in developing countries, and how these can be mitigated through appropriate national policies at the border.

Edible Insects

Edible Insects

Author: Arnold van Huis

Publisher: Bright Sparks

Published: 2013

Total Pages: 0

ISBN-13: 9789251075951

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Edible insects have always been a part of human diets, but in some societies there remains a degree of disdain and disgust for their consumption. Although the majority of consumed insects are gathered in forest habitats, mass-rearing systems are being developed in many countries. Insects offer a significant opportunity to merge traditional knowledge and modern science to improve human food security worldwide. This publication describes the contribution of insects to food security and examines future prospects for raising insects at a commercial scale to improve food and feed production, diversify diets, and support livelihoods in both developing and developed countries. It shows the many traditional and potential new uses of insects for direct human consumption and the opportunities for and constraints to farming them for food and feed. It examines the body of research on issues such as insect nutrition and food safety, the use of insects as animal feed, and the processing and preservation of insects and their products. It highlights the need to develop a regulatory framework to govern the use of insects for food security. And it presents case studies and examples from around the world. Edible insects are a promising alternative to the conventional production of meat, either for direct human consumption or for indirect use as feedstock. To fully realise this potential, much work needs to be done by a wide range of stakeholders. This publication will boost awareness of the many valuable roles that insects play in sustaining nature and human life, and it will stimulate debate on the expansion of the use of insects as food and feed.


Book Synopsis Edible Insects by : Arnold van Huis

Download or read book Edible Insects written by Arnold van Huis and published by Bright Sparks. This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Edible insects have always been a part of human diets, but in some societies there remains a degree of disdain and disgust for their consumption. Although the majority of consumed insects are gathered in forest habitats, mass-rearing systems are being developed in many countries. Insects offer a significant opportunity to merge traditional knowledge and modern science to improve human food security worldwide. This publication describes the contribution of insects to food security and examines future prospects for raising insects at a commercial scale to improve food and feed production, diversify diets, and support livelihoods in both developing and developed countries. It shows the many traditional and potential new uses of insects for direct human consumption and the opportunities for and constraints to farming them for food and feed. It examines the body of research on issues such as insect nutrition and food safety, the use of insects as animal feed, and the processing and preservation of insects and their products. It highlights the need to develop a regulatory framework to govern the use of insects for food security. And it presents case studies and examples from around the world. Edible insects are a promising alternative to the conventional production of meat, either for direct human consumption or for indirect use as feedstock. To fully realise this potential, much work needs to be done by a wide range of stakeholders. This publication will boost awareness of the many valuable roles that insects play in sustaining nature and human life, and it will stimulate debate on the expansion of the use of insects as food and feed.