Staple food prices in Zambia

Prepared for the COMESA policy seminar on “Variation in staple food prices: Causes, consequence, and policy options”, Maputo, Mozambique, 25-26 January 2010 under the Comesa-MSU-IFPRI African Agricultural Marketing Project (AAMP)Zambia, food security, food prices, Agricultural and Food Policy, Demand and Price Analysis, Food Security and Poverty, International Development, International Relations/Trade, q11, q13, q18,

Marketing Policy Options for Consumer Price Mitigation Actions in the 2008/09 Maize Marketing Season in Zambia.

1) Maize prices are rising rapidly in 2008 and are fast approaching import parity levels. 2) Maize traders, millers and farmers all agree that Zambia will likely require imports by early 2009 in order to avoid domestic maize supply shortages. 3) Official food balance sheets appear to have underestimated the demand for maize this year. They may also have slightly overestimated the size of the 2007/08 maize crop. Hence the slow government recognition of the need for maize imports. 4) As of late September 2008, neither the Government of Zambia (GRZ) nor the private sector have arranged to import maize from South Africa. Trade sources suggest informal imports from Tanzania are helping to relieve the likely shortfall. 5) Zambian policy makers face a delicate balancing act: they need to maintain remunerative prices for farmers, in order to stimulate maize supply response during the coming 2008/09 production season, while at the same time moderating maize meal price increases to protect urban consumers and the many rural households who are net buyers of maize. 6) The time to respond to this balancing act challenge is now rather than later in the marketing season when costs of supplies and transport will increase. 7) Several policy actions offer potential win/win options for balancing these twin concerns:food security, food policy, Zambia, maize, marketing, Crop Production/Industries, Q20,

Zambia's 2005 Maize Import and Marketing Experiences: Lessons and Implications

This paper shows how government actions can affect the performance of the maize marketing system and influence the severity of food crises. Examples from the 2005/06 marketing season are used to illustrate how Zambia’s food security situation can be improved through closer consultation, transparency and predictability between government and the private sector. The paper also identifies longer-run options for strengthening the ability of local and regional markets to ensure household and national food security in the face of maize production instability.food security, food policy, Zambia, maize, Crop Production/Industries, Q18,

Food safety and public health implications of growing urban food markets

Currently, Africa suffers from the highest per capita rate of foodborne illnesses in the world. The riskiest foods from a health perspective are animal-source foods, fruits, and fresh vegetables. Consumption of all these is growing rapidly in African cities. Food products sold in formal markets and retail outlets are not necessarily safer than those sold in informal markets. Improvements in urban food safety will require intentioned investments in domestic market infrastructure and improved awareness of the shared responsibility to provide safe food by regulators and value chain actors

Structural Change and the Fall of Income Inequality in Latin America : Agricultural Development, Inter-sectoral Duality, and the Kuznets Curve

In this study we approach the recent decline in income inequality in Latin America from the perspective of structural change with a focus on the relative performance of the agricultural sector. Our focus is on the underlying forces implied by Kuznets (1965). We zoom in on the relative performance of agriculture in the development process and the rural-urban duality and pay particular attention to the last couple of decades in relation to the entire post-1950 period. We attempt to estimate empirically possible theoretical relations with regard to these patterns by posing the following basic questions: how does the resurgence of agriculture relate to the reduction of income inequality and to what extent is this an expression of Latin America moving downward on the Kuznets curve? The literature on agriculture’s relation to the recent changes of income distribution in Latin America is quite limited. For instance, in a recent ECLAC report titled “Structural change for equality” (2012), the role of agriculture is not even mentioned. By agriculture we mean both farming and agro-business that processes and transports that output. To our knowledge, this paper is the first attempt to investigate this relationship for the recent decades in the perspective of structural change in Latin America. There are strong theoretical reasons to connect agricultural development to income distribution. The closing of the rural-urban income gap reflects what Reynolds (1975) called a “dynamic” transformation of agriculture and relates to the contribution agriculture provides for overall growth of the economy. In addition, the elasticity of poverty reduction with respect to growth is estimated to be stronger when growth emanates in the agricultural sector (Ravallion and Chen 2007, de Janvry and Sadoulet 2009). Productivity growth in the lagging sector should also contribute to sectoral labor productivity to convergence and thus helps to reduce inequality (Timmer 1988). For these reasons, the resurgence of agriculture driven partly by improving commodity prices should be given due attention when assessing the decline in income inequality in Latin America. According to the logic of the Kuznets curve, the hypothesized “turning point” of the inverted U-curve is generated by a reduction of income inequality in one or both of the sectors and/or a reduction of the rural-urban income gap as the weight of the agricultural sector diminishes, and the income per capita gap between them declines. We find that the recent decline in income inequality is related to the recent resurgence of Latin American agriculture, and, by inference, its lack of decline across most of the 20th century must be related to a lack of productivity change in agriculture. We provide estimates showing that during the recent decades inter-sectoral duality has been reduced by agricultural productivity growth. The duality expressed as an inter-sectoral Gini shows the shape of an inverted U-curve and as such the closing of the rural-urban income gap corroborates with the theoretical expectations postulated by Kuznets. The wider implication of the study is, however, that with slower growth in agricultural labor productivity, continuing improvement in the income distribution becomes more difficult. In the absence of strong manufacturing growth, agriculture might be able to reduce income inequality further if agro-industries remain unskilled labor intensive, thus raising the opportunity cost of unskilled workers. On the other hand, the traditional service sector has perhaps become the “new agricultural sector” in terms of productivity and labor surplus. In other words, the source of the remaining dualism does not come only from rural areas, but also from urban areas

Plantations, outgrowers and commercial farming in Africa: agricultural commercialisation and implications for agrarian change

Whether or not investments in African agriculture can generate quality employment at scale,avoid dispossessing local people of their land,promote diversified and sustainable livelihoods, and catalyse more vibrant local economies depends on what farming model is pursued. In this Forum, we build on recent scholarship by discussing the key findings of our recent studies in Ghana, Kenya and Zambia. We examined cases of three models of agricultural commercialisation, characterised by different sets of institutional arrangements that link land, labour and capital. The three models are: plantations or estates with on-farm processing; contract farming and outgrower schemes; and medium-scale commercial farming areas. Building on core debates in the critical agrarian studies literature, we identify commercial farming areas and contract farming as producing the most local economic linkages, and plantations/estates as producing more jobs, although these are of low quality and mostly casual. We point to the gender and generational dynamics emerging in the three models, which reflect the changing demand for family and wage labour. Models of agricultural commercialisation do not always deliver what is expected of them in part because local conditions play a critical role in the unfolding outcomes for land relations, labour regimes, livelihoods and local economies

Drivers of diversification and pluriactivity among smallholder farmers—evidence from Nigeria

Diversification and pluriactivity have become a norm among farm business owners (FBOs) due to persistent low farm income. This study applies the resource-based theory to examine drivers of diversification and livelihood income-oriented towards a sustainable livelihood. Our framework develops hypotheses about the impact of internal and external resources on livelihood choices at the household level. We use a survey of 480 rural Nigerian farmers (agripreneurs), applying a Multivariate Tobit to test our framework. We find that education plays the most significant role in all types of employment options. The more FBOs are educated, the more the likelihood that they will choose non-farm or wage employment. This study revealed that while the agriculture sector’s share of rural employment is declining, non-farm is on the increase. More so, there is a decline in farming among the young generation, marital status bias and gender influence in resource allocation. The socioeconomic (income and food security) and socio-cultural (employment and rural-urban migration) implications of rural sustainability linked to UN Development Goals have been highlighted and analysed in this article

Drivers and Socioeconomic Impacts of Tourism Participation in Protected Areas

Nature-based tourism has the potential to enhance global biodiversity conservation by providing alternative livelihood strategies for local people, which may alleviate poverty in and around protected areas. Despite the popularity of the concept of nature-based tourism as an integrated conservation and development tool, empirical research on its actual socioeconomic benefits, on the distributional pattern of these benefits, and on its direct driving factors is lacking, because relevant long-term data are rarely available. In a multi-year study in Wolong Nature Reserve, China, we followed a representative sample of 220 local households from 1999 to 2007 to investigate the diverse benefits that these households received from recent development of nature-based tourism in the area. Within eight years, the number of households directly participating in tourism activities increased from nine to sixty. In addition, about two-thirds of the other households received indirect financial benefits from tourism. We constructed an empirical household economic model to identify the factors that led to household-level participation in tourism. The results reveal the effects of local households' livelihood assets (i.e., financial, human, natural, physical, and social capitals) on the likelihood to participate directly in tourism. In general, households with greater financial (e.g., income), physical (e.g., access to key tourism sites), human (e.g., education), and social (e.g., kinship with local government officials) capitals and less natural capital (e.g., cropland) were more likely to participate in tourism activities. We found that residents in households participating in tourism tended to perceive more non-financial benefits in addition to more negative environmental impacts of tourism compared with households not participating in tourism. These findings suggest that socioeconomic impact analysis and change monitoring should be included in nature-based tourism management systems for long-term sustainability of protected areas