Quantitative value chain analysis : an application to Malawi

The Government of Malawi has since 2005 been pursuing a growth strategy mainly based on increasing the volume of agricultural exports. This entails that Malawi should endeavor to improve the competitiveness of its agricultural commodities so as to gain an increasing share of the regional and international markets. This paper analyzes the competitiveness of the country's key agricultural commodities -- tobacco, maize, cotton, and rice -- using prices that prevailed in the 2007/08 agricultural season. The paper employs a quantitative value chain methodology to assess the country's prospects for competitiveness and suggest weak links along the value chain that require attention in order to improve trade competitiveness. The results indicate that Malawi has some competitive advantage in the production and exportation of tobacco and cotton, and that this mostly derives from its low labor cost advantage. However, the results indicate that based on 2007/08 prices and costs, Malawi does not have competitive edge in maize and rice production for export. As such, Malawi would better pursue an import substitution strategy in these cereals, and perhaps only aim at the export market when regional market opportunities arise. Key factors that underpin Malawi's narrow competitiveness include the high cost of inorganic fertilizer and other inputs, low productivity, and the higher trader margins and intermediation costs along the value chains. Furthermore, farm gate prices in Malawi are higher than in other countries, and this undercuts its trade competitiveness.Transport Economics Policy&Planning,Crops&Crop Management Systems,Economic Theory&Research,Markets and Market Access,Climate Change and Agriculture

Soil Fertility Management And Maize Productivity In Malawi: Curvature Correct Efficiency Modeling And Simulation

We assess the level and determinants of relative technical efficiency of maize-based smallholder farmers using a translog stochastic frontier (TL) model and a symmetric generalized Barnett production function (SGB), both of which are tested for economic regularity conditions. In addition, we conduct a bootstrapping procedure in order to infer about the probability distributions and significance of the relative efficiency values for farmers using different soil fertility management options. The results indicate that higher levels of relative technical efficiency obtain when farmers use integrated soil fertility options compared to the use of chemical fertilizer only. The consistency of the results across the two models increase the robustness of the findings. The paper concludes that productivity growth under the maize-based farming systems is considerably higher when farmers use integrated soil fertility management options. Thus there is need for policy and institutional interventions that enhance farmers’ adoption and scaling-up of integrated soil fertility management.Smallholder agriculture, relative technical efficiency, soil fertility management, Malawi, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, Labor and Human Capital, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,

Alternative Soil Fertility Management Options in Malawi - An Economic Analysis

In this paper, we analyze the factors that influence the productivity of maize among smallholder farmers, given that unfavourable output and input market conditions throughout the 1990s have compelled smallholder farmers into unsustainable agricultural intensification. We use farm-household survey data in order to compare the productivity of smallholder maize production under integrated (ISFM) and chemical-based soil fertility management using a normalized translog yield response model. The results indicate higher maize yield responses for integrated soil fertility management options after controlling for the intensity of fertilizer application, labour intensity, seed rate, land husbandry practices as well as selected policy factors. The estimated model is highly consistent with theoretical conditions. Thus we conclude that the use of ISFM improves maize productivity, compared to the use of inorganic fertilizer only. Since most farmers in the maize-based farming systems are crowded out of the agricultural input market and can hardly afford optimal quantities of inorganic fertilizer, enhancement of ISFM is likely to increase their maize productivity. We finally highlight areas of policy support needed to enhance ISFM uptake in smallholder maize-based farming systems.Malawi, smallholder agriculture, soil fertility management, yield response model, Livestock Production/Industries,

The efficiency of maize farming in Malawi. A bootstrapped translog frontier

We measure the level and determinants of technical efficiency of maize based smallholder farmers using a bootstrapped translog stochastic frontier that is a posteriori checked for functional consistency. The results show that higher levels of technical efficiency are obtained when farmers use integrated soil fertility options compared to the use of inorganic fertilizer only. With respect to the policy variables considered in the analysis, access to agricultural input and output markets, credit provision and extension services strongly influence smallholders’ technical efficiency. There is a need to strengthen these public policy issues in order to effectively address the efficiency of Malawian agriculture and its impact on poverty by ensuring sustainable soil fertility management.smallholder agriculture, bootstrapped frontier, soil fertility management, Malawi

Alternative Soil Fertility Management Options in Malawi An Economic Analysis

In this paper, we analyze the factors that influence t he productivity of maize among smallholder farmers, given that unfavourable output and input market conditions throughout the 1990s have compelled smallholder farmers into unsustainable agricultural intensification. We use farm-household survey data in order to compare the productivity of smallholder maize production under integrated (ISFM) and chemicalbased soil fertility management using a normalized translog yield response model. The results indicate higher maize yield responses for integrated soil fertility management options after controlling for the intensity of fertilizer application, labour intensity, seed rate as well as land husbandry practices a s well as selected policy factors. The estimated model is highly consistent with theoretical conditions. Thus we conclude that the use of ISFM improves maize productivity, compared to the use of inorganic fertilizer only. Since most farmers in the maize-based farming systems are crowded out of the agricultural input market and can hardly afford optimal quantities of inorganic fertilizer, enhancement of ISFM is likely to increase their maize productivity. We finally highlight areas of policy support needed to enhance ISFM uptake in smallholder maize-based farming systems.smallholder agriculture, yield response model, soil fertility management, Malawi, Land Economics/Use,

SOIL FERTILITY MANAGEMENT AND AGRICULTURAL PRODUCTIVITY IN MALAWI

In this paper we analyze the factors that influence the productivity of maize among smallholder farmers. We use farm-household survey data in order to compare the productivity of smallholder maize production under integrated (ISFM) and chemical-based soil fertility management using a normalized translog yield response model. The results indicate higher maize yield responses for integrated soil fertility management options after controlling for the intensity of fertilizer application, labour intensity, seed rate, land husbandry practices as well as selected policy factors. The estimated model is highly consistent with theoretical conditions. Thus we conclude that the use of ISFM improves maize productivity, compared to the use of inorganic fertilizer only. Since most farmers in the maize-based farming systems are crowded out of the agricultural input market and can hardly afford optimal quantities of inorganic fertilizer, enhancement of ISFM is likely to increase their maize productivity. We finally highlight areas of policy support needed to enhance ISFM uptake in smallholder maize-based farming systems.Malawi, smallholder agriculture, soil fertility management, yield response model, Farm Management,

Soil Fertility Management Choice in the Maize-Based Smallholder Farming System in Malawi

The paper analyses the factors that affect smallholder farmers choice of soil fertility management options in Malawi using a two-stage maximum likelihood estimation procedure. Using results from the Double-Hurdle model, the paper estimates the probabilities and intensities of fertilizer application conditional on choice of inorganic fertilizer. The findings indicate that relative wealthy indicators, human capital, credit and market access, food security index and land pressure are the main factors that greatly influence farmers choice and intensity of input investment. Although there is a high and positive correlation between probability of adoption and intensity of application, factors that influence adoption are not necessarily the same as those that influence the intensity of application, conditional on adoption. The paper concludes with policy and research implications aimed at informing the debate on enhancing sustainable soil fertility management among smallholder farmers in Malawi.soil fertility management, smallholder farmers, Double-Hurdle model, Malawi, Resource /Energy Economics and Policy,

Impact of alternative soil fertility management options on maize productivity in Malawi's smallholder farming system

This paper focuses on smallholder maize production in Malawi by investigating the link between productivity and soil fertility management. Many studies conducted in Malawi indicate declining levels of maize productivity thereby posing food security concerns, since maize is the staple crop for most areas of the country. This analysis focuses on the factors influencing productivity of maize among smallholder farmers, especially given the fears that unfavorable output and input market conditions throughout the 1990s may have compelled smallholder farmers into unsustainable agricultural intensification. Farm-household survey data is thus used to compare the productivity of smallholder maize production under integrated soil fertility (ISFM) and chemical-based soil fertility management. A normalized translog yield response model is estimated by imposing monotonicity and curvature correctness at the sample mean. The results indicate higher maize yield responses for integrated soil fertility management options, after controlling for the intensity of fertilizer application, labour intensity, seed rate, land husbandry practices and policy factors such as market access, extension and credit access. The estimated model is highly consistent with theoretical regularity conditions. Thus, the findings indicate that the use of ISFM increases maize productivity in comparison to the use of inorganic fertilizers. Since most farmers in the maize-based farming systems are crowded out of the agricultural input market and can hardly afford optimal quantities of inorganic fertilizer, enhancement of ISFM provides scope for enhancing maize productivity and food security especially where inorganic fertilizer is highly unaffordable and risky to use. Thus there is need for policy interventions to promote smallholder uptake of ISFM options. Finally areas of policy support in crop output and inputmarket development, credit access and extension service provision are identified to enhance ISFM uptake in smallholder maize-based farming systems

Impact of alternative soil fertility management options on maize productivity in Malawi's smallholder farming system

This paper focuses on smallholder maize production in Malawi by investigating the linkbetween productivity and soil fertility management. Many studies conducted in Malawi indicate declining levels of maize productivity thereby posing food security concerns, since maize is the staple crop for most areas of the country. This analysis focuses on the factors influencing productivity of maize among smallholder farmers, especially given the fears that unfavourable output and input market conditions throughout the 1990s may have compelled smallholder farmers into unsustainable agricultural intensification. Farm-household survey data is thus used to compare the productivity of smallholder maize production under integrated soil fertility (ISFM) and chemical-based soil fertility management. A normalized translog yield response model is estimated by imposing monotonicity and curvature correctness at the sample mean. The results indicate higher maize yield responses for integrated soil fertility management options, after controlling for the intensity of fertilizer application, labour intensity, seed rate, land husbandry practices and policy factors such as market access, extension and credit access. The estimated model is highly consistent with theoretical regularity conditions. Thus, the findings indicate that the use of ISFM increases maize productivity in comparison to the use of inorganic fertilizers. Since most farmers in the maize-based farming systems are crowded out of the agricultural input market and can hardly afford optimal quantities of inorganic fertilizer, enhancement of ISFM provides scope for enhancing maize productivity and food security especially where inorganic fertilizer is highly unaffordable and risky to use. Thus there is need for policy interventions to promote smallholder uptake of ISFM options. Finally areas of policy support in crop output and input market development, credit access and extension service provision are identified to enhance ISFM uptake in smallholder maize-based farming systems.Dieser Beitrag betrachtet die kleinbäuerliche Maisproduktion in Malawi indem die Beziehung zwischen Produktivität und Bodenfertilitätsmanagement untersucht wird. Viele der in Malawi durchgeführten Studien berichten von einer rückläufigen Produktivität des Maisanbaus. Da Mais die zentrale Nahrungsmittelpflanze für die meisten Regionen des Landes ist, führt dies zu Problemen im Hinblick auf die Nahrungsmittelsicherheit. Die nachfolgende Analyse fokussiert daher die Faktoren, welche die Produktivität des kleinbäuerlichen Maisanbaus beeinflussen. Dies geschieht vor dem Hintergrund der unvorteilhaften sektoralen Bedingungen im Verlauf der 90er Jahre, welche bei den Kleinbauern eine Intensivierung der Produktion veranlasst haben könnten. Haushaltsdaten werden genutzt um die Produktivität der kleinbäuerlichen Maisproduktion mit einem integrierten Bodenfertilitätsmanagement (ISFM) und diejenige auf der Basis eines chemikalischen Bodenfertilitätsmanagements zu vergleichen. Es wird ein normalisiertes translog Ertragsmodell geschätzt indem Monotonie- und funktionale Krümmungserfordernisse auferlegt werden. Unter Berücksichtigung der Düngemittel- und der Arbeitsintensität sowie der Aussaatbedingungen, der Bodenbearbeitungspraxis und institutioneller sowie politischer Faktoren zeigen die Resultate höhere Ertragsraten für die Produktion mit integriertem Bodenfertilitätsmanagement. Das Schätzmodell weist eine sehr hohe Konsistenz mit den theoretischen Regularitätsbedingungen auf. Die Ergebnisse legen nahe, dass im Vergleich zu inorganischem Düngemitteleinsatz der Einsatz von ISFM die Produktivität der Maisproduktion erhöht. Da viele der maisproduzierenden Kleinbauern nur schwerlich Zugang zu den traditionellen Inputmärkten haben, könnte die Ausweitung des integrierten Bodenfertilitätsmanagements Raum für eine Steigerung der Produktivität des Maisanbaus und der Nahrungssicherheit geben. Dies gilt insbesondere für Gebiete, in denen inorganische Düngemittel nicht erschwinglich sind und risikoreich in der Anwendung erscheinen. Folglich besteht Bedarf für politische Interventionen, um die Akzeptanz von ISFM unter Kleinbauern zu erhöhen. Schließlich identifiziert die vorliegende Studie Ansatzpunkte für potentielle politische Maßnahmen um die Ausweitung des integrierten Bodenfertilitätsmanagements in kleinbäuerlichen maisbasierten Agrarsystemen nachhaltig zu fördern

Community access to marketing opportunities: options for remote areas. Malawi case study (NRI report no. 2450)

The findings of this research are based on the results of a project funded by DFID' s Crop Post-Harvest Research Programme between Aprill998 and March 1999, with fieldwork taking place in Malawi, Mali, and Uganda. The project was mainly concerned with policy and institutional aspects. It was concluded that holistic approaches are required to improve community access to marketing opportunities in remote areas of Sub-Saharan Africa, but that initiatives needed to be prioritised