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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
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Book Synopsis 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.
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: Synopsis written by Ochieng, Dennis O. and published by Intl Food Policy Res Inst. This book was released on 2020-03-03 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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).
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.
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.
Book Synopsis Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets by : Baulch, Bob
Download or read book Commodity exchanges and warehouse receipts in Malawi: Current status and their implications for the development of structured markets written by Baulch, Bob and published by Intl Food Policy Res Inst. This book was released on 2018-11-08 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Book Synopsis Structure, conduct and performance of maize markets in Malawi: Synopsis by : Ochieng, Dennis O.
Download or read book Structure, conduct and performance of maize markets in Malawi: Synopsis written by Ochieng, Dennis O. and published by Intl Food Policy Res Inst. This book was released on 2019-08-29 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Book Synopsis Market Information Services by : Andrew Shepherd
Download or read book Market Information Services written by Andrew Shepherd and published by Food & Agriculture Org.. This book was released on 1997 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Agricultural Markets in Benin and Malawi by : Marcel Fafchamps
Download or read book Agricultural Markets in Benin and Malawi written by Marcel Fafchamps and published by . This book was released on 2016 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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].
Book Synopsis 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.
Download or read book 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 written by Ochieng, Dennis O. and published by Intl Food Policy Res Inst. This book was released on 2020-04-09 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Book Synopsis Report on a study to crowdsource farmgate prices for maize and soybeans in Malawi by : Ochieng, Dennis O.
Download or read book Report on a study to crowdsource farmgate prices for maize and soybeans in Malawi written by Ochieng, Dennis O. and published by Intl Food Policy Res Inst. This book was released on 2020-10-08 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Book Synopsis Seasonality and smallholder market participation in Malawi: A baseline report by : Van Campenhout, Bjorn
Download or read book Seasonality and smallholder market participation in Malawi: A baseline report written by Van Campenhout, Bjorn and published by Intl Food Policy Res Inst. This book was released on with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Book Synopsis Approaches to linking producers to markets by : Andrew Shepherd
Download or read book Approaches to linking producers to markets written by Andrew Shepherd and published by Food & Agriculture Org.. This book was released on 2007 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Agricultural Markets from Theory to Practice by : Barbara Harriss-White
Download or read book Agricultural Markets from Theory to Practice written by Barbara Harriss-White and published by Springer. This book was released on 1999-04-12 with total page 381 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an era of globalization, private markets are expected to dominate the distribution of goods worldwide. Yet surprisingly little empirical work is conducted on them. The sensitive and secret nature of trading information, the complexity of real markets and the lack of official data other than that on price can all cause problems. This book seeks to overcome these in examining arguably the most difficult markets of all - agricultural markets under conditions of underdevelopment. Case-studies from nine countries covering all three underdeveloped continents offer a comprehensive overview of the lessons to be learnt from field experience.
Book Synopsis Cooperatives for Staple Crop Marketing by : Tanguy Bernard
Download or read book Cooperatives for Staple Crop Marketing written by Tanguy Bernard and published by Intl Food Policy Res Inst. This book was released on 2010 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Book Synopsis Smallholder Agriculture and Market Participation by : Nigel Poole
Download or read book Smallholder Agriculture and Market Participation written by Nigel Poole and published by . This book was released on 2017 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Seed Trade in Rural Markets by : Leigh Anderson
Download or read book Seed Trade in Rural Markets written by Leigh Anderson and published by Routledge. This book was released on 2009-12-01 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: Markets have been found to be an increasingly important source of the seeds of crops and varieties low income farmers need to improve their livelihoods, encompassing both the formal and informal seed sector. Markets also have major impacts on agricultural biodiversity, by affecting farmers' choice of crops and varieties to grow. They are not, however, a homogenous institution, although all too frequently policies and regulations are developed as though they were. Markets vary considerably depending on the participants, on the institutions that govern how and what they exchange, and on local agricultural, economic and social conditions. Developing effective strategies to improve the way agricultural markets work, including how farmers use crop genetic resources, requires understanding of these variations. Seed Trade in Rural Markets presents a unique set of case studies from Bolivia, India, Kenya, Mali and Mexico on agricultural seed and product markets that describe three important market characteristics expected to affect farmers' access to seeds and varieties: the range of varieties on offer, the information provided about them, and relative prices. The case studies - all based around a common framework to aid comparability - also provide information on social, agricultural and economic factors which may be affecting the market availability, information, and cost of crop genetic resources, and ultimately the capacity to stimulate agricultural development Published with the Food and Agriculture Organization (FAO) of the United Nations
Book Synopsis A Market Facilitator's Guide to Participatory Agroenterprise Development by : Shaun Ferris
Download or read book A Market Facilitator's Guide to Participatory Agroenterprise Development written by Shaun Ferris and published by Catholic Relief Services. This book was released on 2006-09 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication is a product of the experiences and lessons learned while implementing agroenterprise projects in eastern and southern Africa. A Market Facilitator's Guide is based on a resource-to-consumption framework, which is the central theme of the "enabling rural innovation" approach for rural development. This approach seeks to empower farmer groups with the necessary skills to make informed decisions for their economic development, based on an analysis of their surroundings, assets and skills. The methodology also aims for outcomes that are equitable, gender focused and participatory.
Book Synopsis Building Networks for Market Access by : Paul Nyende
Download or read book Building Networks for Market Access written by Paul Nyende and published by Food & Agriculture Org. This book was released on 2011 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The original aim of the Rural Knowledge Network (RKN) was to make more information available, specifically about markets, to smallholder farmers. The core idea was to provide information to farmers and traders about current market prices in different markets around the country. Supporting small-scale farmers to access markets is highly recommended in East Africa and it should be a priority in all agricultural development programmes in the region. This document analysis the experiences from the RKN Pilot Project for East Africa.
