Grain Distribution in Ghana under Imperfectly Competitive Market Conditions

Interspatial and intertemporal grain distribution in Ghana is a private sector activity carried out mainly by traders. These traders sometimes collude to maximize their joint profits. By so doing they influence the conduct of the grains market. To examine the effect of their actions on the informal maize market in Ghana, a spatial equilibrium model was estimated under three scenarios: (1) Perfect competition, (2) Cournot-Narsh conjectures, and (3) Collusion. The results indicate that imperfect competition distorts grain flows, reduces consumer welfare and depresses traders’ sales revenue. Collusive behavior of traders, on the other hand, causes the greatest distortion of grain flows as well as trader and consumer welfare. These results draw attention to policy makers and development agents to educate traders against using their associations to foster collusion.Spatial equilibrium, monopoly, imperfect competition, interspatial, Cournot- Narsh conjectures, Crop Production/Industries, D4, L1,

Accounting for Neighborhood Influence in Estimating Factors Determining the Adoption of Improved Agricultural Technologies

Researchers have traditionally applied censored regression models to estimate factors influencing farmers' decisions to adopt improved technologies for the design of appropriate intervention strategies. The standard Tobit model, commonly used, assumes spatial homogeneity implicitly but the potential for the presence of spatial heterogeneity (spatial autocorrelation or dependence) is high due to neighborhood influence among farmers. Ignoring spatial autocorrelation (if it exists) would result in biased estimates and all inferences based on the model will be incorrect. On the other hand, if spatial dependence is ignored the regression estimates would be inefficient and inferences based on t and F statistics misleading. To account for neighborhood influence, this study applied a spatial Tobit model to assess the factors determining the adoption of improved maize varieties in southern Africa using data collected from 300 randomly selected farm households in the Manica, Sussundenga and Chokwe districts of Mozambique during the 2003/04 crop season. Model diagnosis confirmed the spatial Tobit model as a better fit than the standard Tobit model. The estimated results suggest that farm size, access to credit, yield and cost of seed significantly influence maize variety adoption at less than 1% error probability while age of household head and distance to market influence adoption decisions at 5% error probability. The marginal effect analysis showed that convincing farmers that a given improved maize variety would give a unit more yield than the local one would increase adoption rate by 18% and intensity of use by 10%. Given that improved maize seeds are relatively more expensive than local ones, making credit accessible to farmers would increase adoption and intensity of use of improved maize varieties by 24% (15% being the probability of adoption and 8% the intensity of 2 use of the varieties). On the other hand, increasing seed price by a unit over the local variety would decrease the adoption rate by 12% and area under the improved variety by 6%. Targeting younger farmers with extension messages or making markets accessible to farmers would marginally increase the adoption and use intensity of improved maize varieties by only 0.4%. These results suggest that increasing field demonstrations to show farmers the yield advantage of improved varieties over local ones in Mozambique are essential in improving the uptake of improved varieties, which may be enhanced by making credit available to farmers to address the high improved seed costs. Alternatively, assuring farmers of competitive output markets through marketing innovations would enhance improved maize variety adoptions decisions. It may be concluded that the significance of the paper is its demonstration of the need to include spatial dependency in technology adoption models where neighborhood influences are suspected. Such an approach would give more credence to the results and limit the errors in suggesting areas to emphasize in individual or group targeting. The results thus have implications beyond the study area. Furthermore, the paper contributes to the scanty literature on the application of spatial econometrics in agricultural technology adoption modeling.Farm Management,

Grain price adjustment asymmetry: the case of cowpea in Ghana

Patterns in price adjustment in response to information are important to market practitioners. This study looks at cowpea real wholesale price adjustment patterns in Bolgatanga, Wa, Makola and Techiman markets in Ghana. Using Techiman as the central market, a threshold autoregressive test for asymmetric price adjustment rejected the null hypothesis of symmetric adjustment for only the Bolgatanga-Techiman price series. An autoregressive conditional heteroskedastic regression indicates that wholesalers in Bolgatanga market respond differentially to price signals from Techiman than those in the other two markets. This suggests that policies targeting cowpea traders must recognize the differential responses by wholesalers to information.Africa, Ghana, wholesalers, market information, autoregressive conditional heteroskedasticity, threshold autoregressive, Crop Production/Industries, D82, D43,

Assessment of the effectiveness of maize seed assistance to vulnerable farm households in Zimbabwe

The publication describes outcomes of a study to assess the effectiveness of a large-scale crop seed relief effort in Zimbabwe during 2003-07. Aims of the effort, which was supported by the British Department for International Development (DfID) and coordinated by the Food and Agricultural Organization (FAO) regional office in Harare, included broader diffusion of open-pollinated maize varieties (OPVs), as opposed to hybrids. Based on the findings of the study, the authors recommend that, to increase benefits to vulnerable groups, participants in such efforts should effectively disseminate information on selecting and recycling seed, supported by training and field demonstrations, and should target relatively well-endowed farmers initially. Recommendations also included promotion of OPVs by commercial seed companies and developing a simple, farmer-friendly system for naming varieties.Agricultural development, Technical aid, Farm income, Food production, Maize, Open pollination, Hybrids, Zimbabwe, Crop Production/Industries, International Development,

A Unified Approach to the Estimation of Demand for Improved Seed in Developing Agriculture

This paper proposes a new approach for estimating the demand for seed within a developing country context where only improved seeds are sold but adoption rates for improved varieties low. A farmer views an improved seed firstly as a derived input embodying production attributes and secondly, as a technology embodying consumption characteristics. He therefore jointly decides on its adoption and the quantity of seed required to plant a predetermined area. Drawing on the theory of demand for consumption goods characteristics and production input attributes, this paper specified and estimated non-separable household demand and consumption models using data collected from 300 farm households in Zambia during the 2003/04 crop season. The estimated results suggest that adoption rate, distance to market, level of household grain self-sufficiency, seed hand-outs and household wealth are significant in determining farmers' seed purchase decisions. Appropriate intervention strategies for increased over-all improved seed demand are recommended. It is concluded that apart from contributing to the literature on modelling farm level seed demand, the model provides a holistic approach for the joint estimation of determinants of improved variety adoption and seed demand relevant for better targeting to increase the impacts of maize breeding research in developing countries.agricultural household model, consumer goods characteristics, production inputs, technology attributes, non-separability, censored equations, Zambia, Crop Production/Industries, C21, D1, O3, Q12, Q16,

Adoption of Conservation Agriculture Technologies by Smallholder Farmers in the Shamva District of Zimbabwe: A Tobit application

Conventional agricultural practices such as the use of the moldboard plough are no longer sustainable due to their extensive soil degradation effects. As a panacea, several Conservation Agriculture (CA) technologies have been promoted to improve soil structure and water conservation. However, adoption of these technologies has been resisted by smallholder farmers and identifying causes of the low adoption rates to facilitate intervention strategies remains a challenge to development practitioners. Using data from 100 farmers, this paper uses a Tobit application to assess the underlying factors important in determining farmers’ adoption of zero-tillage, crop rotation and contour ridging technologies. Empirical results suggest that adoption and use intensity of each of these technologies is affected by a set of distinct household factors. There is also evidence to show complementarities in adoption and use of these technologies, suggesting the need to tailor awareness and promotional strategies depending on the technology in question and socio-economic background of target farmers.Conservation Agriculture (CA), Conventional Farming (CF) technology, Tobit Model, Adoption, Agricultural and Food Policy, Community/Rural/Urban Development, Farm Management,

Caractérisation des ménages producteurs de maïs en zone de savane sèche au Bénin

Des études antérieures ont prédis que le maïs deviendra une culture commerciale et assurera la sécurité alimentaire mieux que toute autre culture. Dans le Nord du Bénin par exemple, il vient en deuxième position après le coton en tant que culture de subsistance et de rente. Selon le Ministère de l’Agriculture, de l’Élevage et de la Pêche (1997-2005), les superficies emblavées ont augmenté de 583254 ha en 1997 à 714155 ha en 2004. Malheureusement, les rendements moyens ont stagné entre 1100 et 1250 kg/ha au cours de la même période. Cette faiblesse de la productivité s’expliquerait, entre autres, par la baisse de la fertilité des sols, l’utilisation de cultivars (semences, boutures etc..) inappropriés. Les paysans du Nord Bénin utilisent essentiellement des semences traditionnelles. Par contre, on reproche généralement aux variétés améliorées plus productives d’être très exigeantes en engrais minéraux et pesticides spécifiques souvent difficiles à acquérir et de présenter des qualités organoleptiques ne répondant pas toujours aux exigences alimentaires des producteurs. La sécheresse est perçue par les agriculteurs dans bon nombre de zones agro écologiques comme un facteur perturbateur de la production des cultures dont le maïs. Associée aux dégâts des ravageurs, elle hypothèque les rendements et la qualité marchande des produits. Les effets néfastes de la sécheresse continuent donc de réduire la production dans les différentes zones agro écologiques du pays, du fait de l’absence d’une large adoption de variétés tolérantes à ce facteur abiotique. Pour remédier à cette situation, le Centre international pour l’amélioration du maïs et du blé (CIMMYT) et l’Institut international d’agriculture tropicale (IITA) ont initié un projet de recherche sur le maïs tolérant la sécheresse. L’objectif de ce projet est de réduire la faim et d’augmenter la sécurité alimentaire et financière des paysans aux ressources limitées, à travers la création et la diffusion des variétés de maïs. Depuis son démarrage en 2007, de nouvelles technologies (variétés améliorées) sont en cours d’essais en station et en milieu réel. Ces variétés seront bientôt proposées à la vulgarisation. L’objectif de cette recherche est d’établir une situation de référence dans les zones d’intervention du projet DTMA en termes de niveau de vie des ménages, d’adoption des nouvelles variétés de maïs et d’adaptation aux catastrophes naturelles. Ce travail permettra de mieux apprécier l’impact des interventions du projet DTMA en fournissant une base de comparaison. Ce document présente la synthèse des enquêtes de base réalisées dans les communes de Kandi et de Tanguiéta dans le Nord Bénin avec 175 exploitations tirées au hasardL’enquête a confirmé le rôle prépondérant que joue le maïs dans la satisfaction des besoins alimentaire et financiers des populations de la zone. Cette étude a aussi permis de mettre en évidence les principales caractéristiques qui influencent et qui sont susceptibles d’influencer l’adoption de nouvelles variétés de maïs. L’un des principaux risques qui affectent les agriculteurs dans la zone d’étude est la fluctuation des prix de vente des récoltes. Pour pallier cette difficulté, les exploitants bradent prématurément leur production, recourent aux engrais minéraux et organiques, et diversifient leurs activités de production agricole. Les principaux chocs qui affectent la culture du maïs sont : les dégâts causés par les animaux (en divagation), la sécheresse, la forte hausse du prix des intrants, et la baisse spectaculaire du prix du maïs. Des efforts doivent être menés pour améliorer l’accessibilité et la qualité des semences, de même que la gestion de la fertilité des sols grâce à des technologies adaptées. Selon les paysans, le DMR est actuellement la meilleure variété améliorée. L’adoption des variétés améliorées semble être influencée par: l’appartenance aux associations, le genre, l’accès aux engrais chimiques (NPK, urée) et la taille de l’exploitation

Characterization of maize producing households in the dry savanna of Mali

Maize is one of the three most important staple foods in Mali. Zones in the country with high potential for producing maize are limited to areas where the probability of drought risk is between 20 and 40%, meaning that recurring droughts have long handicapped maize production. In an attempt to alleviate drought stress on maize production, a household survey was conducted in the two Local Government Areas of Bougouni and Koutiala, both in the Sikasso Region, during the 2007/2008 production period. These two districts were selected following an environmental characterization of drought zones in Mali. The survey was mainly oriented towards maize based farming systems. Six sample villages were selected within each of the two districts. The sample population was defined as maize farming households. A total of 150 households were randomly selected and interviewed with structured questionnaires. Interviews were conducted by trained enumerators using a formal household survey. The purpose of the study is to provide both quantitative and qualitative feedback from farmers to researchers and to the B&MGF on the impact that improved maize varieties developed in the past have had upon the livelihoods of households and to provide a detailed database for the projection of expected outcomes with the deployment of new drought tolerant maize varieties under the B&MGF drought tolerant maize project. Both qualitative and quantitative analyses were used to extract from our set of variables those orthogonal linear combinations of the variables that best captured the common information. Most successful was the one proposed by Filmer and Pritchett (1998; 2001) called the Principal Component Analysis (PCA). To assess the variables affecting the adoption of improved maize varieties, the Tobit model was used. The results show that 99% of household heads are male. The size of a household is 22 persons, on average. About 47% of the household’s members are available for farm work. About 59% of household heads are illiterate, an important factor concerning the adoption of new technology. These household heads make decisions about 84% of farming activities; 86% of the households involved in the study belonged to at least one farmers’ organization in order to have easy access to inputs

Improving the competitiveness and marketability of locally-produced rice in Ghana

Irrigated rice has been grown over a number of decades in Ghana on state-sponsored government irrigation projects. Over the years these projects have received extensive state support, as the government has attempted, through various initiatives, to achieve food self-sufficiency. The emphasis on promoting domestic rice production was enhanced by the growing importance of rice in the diet of the urban population, combined with technical assistance provided by donors, such as the Chinese. In addition, the promotion of state-sponsored, input-intensive agriculture reflected the Ghanaian government's past adherence to socialist development models

The Politics of Seed Relief in Zimbabwe

A decade of economic and political turmoil in Zimbabwe, as well as a period of radical land reform which reconfigured the country's agricultural sector, dramatically affected its seed system, reducing the supply of quality seeds and undermining regulatory control. The collapse of the seed system was exacerbated by seed relief programmes implemented by the government and aid agencies, which bypassed the normal market chain. In 2010, aid agencies experimented with ‘market?friendly’ input programmes which also created distortions and were vulnerable to political interference. In resource?constrained settings, subsidy programmes, no matter what design, became objects of political contestation. This article aims to understand how Zimbabwe can rebuild a seed system appropriate to the post?land reform context by asking questions about the underlying political economy of this process, examining the implementation of the input delivery approaches