An Analysis of the Recent Evolution of Mali’s Maize Subsector

In most developing countries, historically, the main strategy for improving the food sector has focused on increasing farm-level production. But in recent years, with the emphasis on value chain analysis, there has been much more focus on subsector studies, demand-driven approaches, and improving vertical coordination to assure product quality to final consumption markets. Millet, sorghum, and later rice were the traditional leading three cereal crops produced and consumed in Mali. Maize has trailed them for more than two decades, but from mid 1990s on, it has been produced and consumed in much larger quantities. Given the potentials of maize, developing and better organizing its subsector has the potential to not only increase revenues for maize farmers, but also create profitable opportunities for other actors in the subsector (traders, marketers, processors, industries, and consumers). This paper seeks to provide a description of the changing supply and demand dynamics for maize in Mali, the organization of the marketing channels and players, and the characteristics of the main consumption markets. The main conceptual tools to be used are subsector analysis and the structure-conduct-performance (SCP) approach. The paper will draw on literature reviews, the author’s personal interviews with value chain participants, and tabular and graphical analysis of production and price data to address the reasons behind the changes in production and demand, how the demand is likely to evolve, how the structure of the subsector might be affected, and what will be the implications for public sector investments and policies.maize, value chain, Mali, cereals, food security, agricultural marketing, livestock feed, industrial organization, Agribusiness, Agricultural and Food Policy, Food Security and Poverty, International Development, Marketing, L11-Production, Pricing, and Market Structure, Size Distribution of Firms, N57-Africa, Oceania, O17-Formal and Informal Sectors, Shadow Economy, Institutional Arrangements, O33-Technological Change: Choices and Consequences, Diffusion Processes, Q12-Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, Q13-Agricultural Markets and Marketing, Cooperatives, Agribusiness, Q18-Agricultural Policy, Food Policy,

Modeling heterogeneity in production models: empirical evidence from individual farming in Poland

This discussion paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analyzed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms. -- G E R M A N V E R S I O N: Das vorliegende Diskussionspapier befasst sich mit Schätzung von Random Parameter Modellen in Rahmen von Frontier Analysen. Ein wesentlicher Vorteil dieses Ansatzes liegt darin, dass er im Gegensatz zu den konventionellen SFA die Heterogenität der Untersuchungseinheiten berücksichtigt. Die empirische Analyse bezieht sich auf landwirtschaftliche Betriebe in Polen. Die Ergebnisse deuten darauf hin, dass die konventionellen Random und Fixed Effect Modelle das Niveau der Inneffizienz überschätzen. Weiterhin wurden die Ursachen der Ineffizienz untersucht. Obwohl die polnische Landwirtschaft sehr zersplittert ist, lieferten die Ergebnisse keinen statistisch gesicherten Beweis für Vorliegen von Skalenineffizienzen. Die Ursachen der Ineffizienzen liegen dagegen in Faktoren, welche auf unternehmerische Fähigkeiten des Betriebsleiters sowie betriebsorganisatorische Aspekte zurückgeführt werden können.random component model,Poland,management,SFA,Random Parameter Modell,Polen,Management

ENDOGENOUS TRANSACTION COSTS AND TRADABILITY IN A MICRO ECONOMYWIDE MODEL - A STYLIZED APPLICATION WITH NONSEPARABLE HOUSEHOLDS

This paper analyzes effects of transaction costs on household responses, adding to direct effects via price-bands, indirect effects through reduced availability of productive resources and through changes in price formation. A micro economywide model with nonseparable household models is developed, in which transaction costs determine effective prices through an endogenous, household-specific price-band. Moreover, transaction costs influence household decisions by claiming productive resources, and by affecting endogenous prices at household or micro-economy level. Comparison of two stylized village model specifications indicates that indirect effects of transaction costs reduce household supply response, despite reducing the range of prices for which households operate within their price-band. Results show that transaction costs need to be identified in terms of commodities used for transactions, and in terms of tradability of these commodities, to account for indirect effects of transaction costs.Research Methods/ Statistical Methods,

The changing structure of production: Argentine agriculture 1988–2002

The agricultural sector of many countries shows increasing farm size with corresponding decrease in farm numbers. Despite abundant research, the determinants of changes in firm numbers and size have not been clearly identified. This paper attempts to explain small firm survival in Argentine agriculture in the 1988 – 2002 period. The evidence suggests that labor market considerations, as well changing optimal size in response to production specialization are important factors affecting small-firm disappearance. In contrast, factor proportions (the K/L ratio) does not appear to have an impact on changes in firm size.economies of scale, Argentine agriculture, agricultural labor markets.

Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents

Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.

Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents

Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.Agricultural Value Chains, Contract Farming, Africa, Asia, Latin America

The Economics of Agricultural Development: What Have We Learned? Processes

Agricultural development thinking has gone through several stages of fad and fancy, often without an understanding of previous fallacies. Its current doldrums are unfortunate given the unrivaled importance of agricultural development for poverty reduction in most development countries. After reviewing several policy and program areas, lessons are synthesized, and a forwardlooking research framework suggested, especially regarding role of specialization in the evolution of economic organization. The corresponding role of government is seen to be the facilitation of economic cooperation, rather than social engineering.

Externalities in rural development - evidence for China

The author tests for external effects of local economic activity on consumption and income growth at the farm-household level using panel data from four provinces of post-reform rural China. The tests allow for non-stationary fixed effects in the consumption growth process. Evidence is found of geographic externalities, stemming from spillover effects of the level and composition of local economic activity and private returns to local human and physical infrastructure endowments. The results suggest an explanation for rural underdevelopment arising from under-investment in certain externality-generating activities, of which agricultural development emerges as the most important.Labor Policies,Economic Theory&Research,Economic Conditions and Volatility,Environmental Economics&Policies,Health Economics&Finance,Environmental Economics&Policies,Economic Theory&Research,Inequality,Achieving Shared Growth,Health Economics&Finance

Market Structure, Outgrower contracs and Farm Output. Evidence from Cotton Reforms in Zambia

This paper investigates the dynamic impacts of cotton marketing reforms on farm output in rural Zambia. Following liberalization and the elimination of the Zambian cotton marketing board, the sector developed an outgrower scheme whereby cotton firms provided credit, access to inputs and output markets, and technical assistance to the farmers. There are two distinctive phases of the reforms: a failure of the outgrower contracts, due to farmers' debt renegation, firm hold up, and lack of coordination among firms and farms, and a subsequent period of success of the scheme, due to enhanced contract enforcement and commitment. We find interesting dynamics in the sector. During the phase of failure, farmers were pushed back into subsistence and cotton yields per hectare declined. With the improvement of the outgrower scheme, farmers devoted larger shares of land to cash crops, and farm output significantly increased.