Market Information and Farmers’ Access to Structured Markets. Evidence from an action Research Experiment in Central Malawi. Rosemary Botha_26 February 2020
Structure conduct-performance of malawi maize market IFPRIMaSSP
In this seminar, we will present the preliminary findings of an ongoing study investigating the structure, conduct and performance of the maize market in Malawi. The purpose of this study is to understand how interactions within the maize marketing environment influence the availability, accessibility and affordability of maize, and to suggest ways to improve the functioning of maize marketing system while fostering. A mixed method approach was employed, with semi-structured interviews of 555 traders of various types along with focus group discussions with maize farmers in 28 locations. The fieldwork was done in 7 districts and 14 EPAs from Mulanje in the south to Chitipa in the north. It will be argued that the ‘solution space’ for promoting a well-functioning maize market which ensures Malawi’s food security involves a policy mix that: (i) fosters productivity growth among small farmers; (ii) encourages larger farms to expand production of non-seed maize; and, (iii) broadening the scope and depth of private sector involvement in maize marketing.
Price Determinant of Kolanut in Selected Markets in Ibadan, Oyo State, NigeriaAI Publications
The study was carried out to examine the price determinants of Kolanuts in selected markets in Ibadan, Oyo State. Eighty(80) Kolanuts sellers were randomly selected from four(4) urban Local Government Areas in Ibadan where four(4) Kolanut markets center were also visited. The data collected were subjected to descriptive statistics, Gross Margin and multiple Regression analysis. The results indicated that majority (97%) of Kolanut sellers in the study area were females. It was observed that (48%) of the respondents belong to the age bracket of 41-50years while (66.3%) of the respondents had primary and secondary education. Gross margin analysis showed that seven hundred and twenty three thousand, three hundred and fifty naira (₦723, 350.00) was realized as profit margin after the total variable cost(TVC) of two hundred and three thousand, four hundred and fifty naira(₦203,450.00) have been deducted as cost obtained. The results of multiple regression shows that the R2 (0.67) is high and that E-statistics further explained the ability of the independent variables in explaining the variations in the dependent variable. It was found out that slight changes in any of the explanatory variable will result in downward / upward movement in the market price of kolanut in the study area. It is imperative that more research should be carried out for more varieties of kolanut which could enhance more demand and marketing.
Determinants of Market Facilitators Choice by Smallholder Farmers in Laikipia...iosrjce
Horticultural crop production is one of the major crops grown in arid and semi-arid lands especially
in Laikipia County, Kenya.Market facilitators’ help in linking smallholder farmers to high value market either
in rural or urban markets. The underpinning factors in choice of market facilitators by smallholder farmers are
not yet well understood. Therefore, this paper aims to determine those factors influencingchoice of market
facilitators by farmers while marketing their produce. A multi-stage sampling technique was used to select 396
farmers in Laikipia East district. Binary Logit model was used as the major analytical tool; it is applicable
when analyzing binary decision or response. The results showed that, household size, age of household head
and marketing through a group positively influenced choice of market facilitators by smallholder farmers. On
the other hand, number of members in the group, access to market information, purpose of farming and amount
of output produced negatively influenced choice of market facilitators. Based on these findings, policy was
drawn to improve access to facilitators by farmers that linked them to high value output market
Agricultural marketing is a method that includes gathering, storage, preparation, shipping, and delivery of different farming materials across the country. In agriculture marketing, the selling of an agriculture product depends on various components like the demand for the product at that time, availability of storage, etc.
Structure conduct-performance of malawi maize market IFPRIMaSSP
In this seminar, we will present the preliminary findings of an ongoing study investigating the structure, conduct and performance of the maize market in Malawi. The purpose of this study is to understand how interactions within the maize marketing environment influence the availability, accessibility and affordability of maize, and to suggest ways to improve the functioning of maize marketing system while fostering. A mixed method approach was employed, with semi-structured interviews of 555 traders of various types along with focus group discussions with maize farmers in 28 locations. The fieldwork was done in 7 districts and 14 EPAs from Mulanje in the south to Chitipa in the north. It will be argued that the ‘solution space’ for promoting a well-functioning maize market which ensures Malawi’s food security involves a policy mix that: (i) fosters productivity growth among small farmers; (ii) encourages larger farms to expand production of non-seed maize; and, (iii) broadening the scope and depth of private sector involvement in maize marketing.
Price Determinant of Kolanut in Selected Markets in Ibadan, Oyo State, NigeriaAI Publications
The study was carried out to examine the price determinants of Kolanuts in selected markets in Ibadan, Oyo State. Eighty(80) Kolanuts sellers were randomly selected from four(4) urban Local Government Areas in Ibadan where four(4) Kolanut markets center were also visited. The data collected were subjected to descriptive statistics, Gross Margin and multiple Regression analysis. The results indicated that majority (97%) of Kolanut sellers in the study area were females. It was observed that (48%) of the respondents belong to the age bracket of 41-50years while (66.3%) of the respondents had primary and secondary education. Gross margin analysis showed that seven hundred and twenty three thousand, three hundred and fifty naira (₦723, 350.00) was realized as profit margin after the total variable cost(TVC) of two hundred and three thousand, four hundred and fifty naira(₦203,450.00) have been deducted as cost obtained. The results of multiple regression shows that the R2 (0.67) is high and that E-statistics further explained the ability of the independent variables in explaining the variations in the dependent variable. It was found out that slight changes in any of the explanatory variable will result in downward / upward movement in the market price of kolanut in the study area. It is imperative that more research should be carried out for more varieties of kolanut which could enhance more demand and marketing.
Determinants of Market Facilitators Choice by Smallholder Farmers in Laikipia...iosrjce
Horticultural crop production is one of the major crops grown in arid and semi-arid lands especially
in Laikipia County, Kenya.Market facilitators’ help in linking smallholder farmers to high value market either
in rural or urban markets. The underpinning factors in choice of market facilitators by smallholder farmers are
not yet well understood. Therefore, this paper aims to determine those factors influencingchoice of market
facilitators by farmers while marketing their produce. A multi-stage sampling technique was used to select 396
farmers in Laikipia East district. Binary Logit model was used as the major analytical tool; it is applicable
when analyzing binary decision or response. The results showed that, household size, age of household head
and marketing through a group positively influenced choice of market facilitators by smallholder farmers. On
the other hand, number of members in the group, access to market information, purpose of farming and amount
of output produced negatively influenced choice of market facilitators. Based on these findings, policy was
drawn to improve access to facilitators by farmers that linked them to high value output market
Agricultural marketing is a method that includes gathering, storage, preparation, shipping, and delivery of different farming materials across the country. In agriculture marketing, the selling of an agriculture product depends on various components like the demand for the product at that time, availability of storage, etc.
Agricultural Marketing and Price Analysis - CoffeePiLNAfrica
The objective of this course is to provide students with a theoretical and empirical basis for valuating agricultural marketing organization and actors for market performance and public policy decision, and to enable them develop and use the tools of economic theory to analyse issues related to the marketing of agricultural commodities. In addition, case study reports and video footage that demonstrate coffee marketing in Ethiopia are included.
After completing this course, the students should:
Apply economic theory to problems of agricultural marketing;
Design strategies for effective market performance;
Use marketing concepts for analyzing market structure and performance in agriculture and formulate effective agricultural marketing policy;
Apply theoretical models of imperfect market structures to inform public policy;
Appreciate organizational forms unique to agricultural industries; and
Understand price discovery mechanisms under different market structures.
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Over the years, major changes came into effect to improve the agricultural marketing system. Many institutions viz., the regulated markets, marketing boards, cooperative marketing institutions, warehousing cooperatives etc., have been established primarily to help the farmers. However, various studies indicated that modernization in agricultural marketing could not keep pace with the technological adoptions in agriculture. The various marketing functions viz., grading, standardization, storage, market intelligence, etc., need to be improved to meet the present day requirements of the farmers. In improving the marketing system for food and livestock in developing countries as Nigeria, it is pertinent to understand the nature of marketing problems as it is only by doing this that workable solution can be found to them. Indeed such knowledge of marketing problems would give information as to why markets are not developing and what measures are required to develop the markets.
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Marketing is the fruit of success in any form of business. Agricultural Marketing is the process of supplying farm inputs to the farmers and the movement of agricultural products from the producer to its ultimate consumer which involves various functions such as buying, selling, packaging, transportation, grading and standardization, storage, processing etc. during this process, there is a chance for some risks and uncertainties to take place. Uncertainty is the unknown factor which causes sudden loss that cannot be predicted and managed where risk is the part of uncertainty which is a known factor that means stepping into a process or technique even-though by knowing that there is a probability of loss. Agricultural marketing experiences three types of risks namely the Physical risk, Price risk and the Institutional risk. The physical risk is the loss in the quantity and quality of the product during storage and transport like fire accident; rodents, pest and disease attack and due to improper packing. The price risk includes the fluctuation in the price of the agricultural marketing; changes in the demand and supply of the product. The institutional risk arises due to the change in the government budget policy; due to the change in the import and export policy. The physical risk can be managed by using fire proof materials in the storage structures, by proper packing and by giving pre-storage treatments. The price risk can be minimized by following contract farming, forward and future market, speculation and hedging. The farmer or trader must have thorough knowledge in the management of risk and should adopt the suitable methods in order to get better outcome in the agricultural marketing.
Agricultural Marketing and Price Analysis - CoffeePiLNAfrica
The objective of this course is to provide students with a theoretical and empirical basis for valuating agricultural marketing organization and actors for market performance and public policy decision, and to enable them develop and use the tools of economic theory to analyse issues related to the marketing of agricultural commodities. In addition, case study reports and video footage that demonstrate coffee marketing in Ethiopia are included.
After completing this course, the students should:
Apply economic theory to problems of agricultural marketing;
Design strategies for effective market performance;
Use marketing concepts for analyzing market structure and performance in agriculture and formulate effective agricultural marketing policy;
Apply theoretical models of imperfect market structures to inform public policy;
Appreciate organizational forms unique to agricultural industries; and
Understand price discovery mechanisms under different market structures.
THE MAJOR PROBLEMS CONFRONTING AGRICULTURAL MARKETING IN NIGERIA AND SUGGEST ...Folarin Gbolahan
Over the years, major changes came into effect to improve the agricultural marketing system. Many institutions viz., the regulated markets, marketing boards, cooperative marketing institutions, warehousing cooperatives etc., have been established primarily to help the farmers. However, various studies indicated that modernization in agricultural marketing could not keep pace with the technological adoptions in agriculture. The various marketing functions viz., grading, standardization, storage, market intelligence, etc., need to be improved to meet the present day requirements of the farmers. In improving the marketing system for food and livestock in developing countries as Nigeria, it is pertinent to understand the nature of marketing problems as it is only by doing this that workable solution can be found to them. Indeed such knowledge of marketing problems would give information as to why markets are not developing and what measures are required to develop the markets.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
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Presented by Berhanu Gebremedhin, Kaleb Shiferaw, AzageTegegne and Dirk Hoekstra at Workshop on the 30th International Conference of Agricultural Economists (ICAE), Vancouver, British Columbia, 28 July-2 August 2018
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This research evaluates the performance of livestock marketing in Afar region, an area characterized by recurrent drought, inadequate basic livestock market infrastructure and accessibility. In addition to secondary data, survey data was collected from 120 randomly selected traders together with intensive price monitoring in seven markets over a period of two months. Markets structures were evaluated using market concentration ratio and; the price co movement, determinants of price and efficiency of the market was also investigated using statistical analysis of multivariate correlation, regression model (ANOVA) and marketing margin respectively. The result indicated that Ayssita, Chifra and Sabure markets had oligopsony market structure with higher wholesale buyers’ concentration; and most of the markets were also inefficient with higher marketing margins except for Yallo market. The regression model showed that livestock price was significantly influenced by markets, breeds, gender, age group, and grades of animals and the multivariate correlation result showed, markets were not integrated at all levels. Policies directed to livestock development projects, mainly improving marketing facilities can change the situation there.
Marketing is the fruit of success in any form of business. Agricultural Marketing is the process of supplying farm inputs to the farmers and the movement of agricultural products from the producer to its ultimate consumer which involves various functions such as buying, selling, packaging, transportation, grading and standardization, storage, processing etc. during this process, there is a chance for some risks and uncertainties to take place. Uncertainty is the unknown factor which causes sudden loss that cannot be predicted and managed where risk is the part of uncertainty which is a known factor that means stepping into a process or technique even-though by knowing that there is a probability of loss. Agricultural marketing experiences three types of risks namely the Physical risk, Price risk and the Institutional risk. The physical risk is the loss in the quantity and quality of the product during storage and transport like fire accident; rodents, pest and disease attack and due to improper packing. The price risk includes the fluctuation in the price of the agricultural marketing; changes in the demand and supply of the product. The institutional risk arises due to the change in the government budget policy; due to the change in the import and export policy. The physical risk can be managed by using fire proof materials in the storage structures, by proper packing and by giving pre-storage treatments. The price risk can be minimized by following contract farming, forward and future market, speculation and hedging. The farmer or trader must have thorough knowledge in the management of risk and should adopt the suitable methods in order to get better outcome in the agricultural marketing.
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Market Information and Farmers’ Access to Structured Markets. Evidence from an action Research Experiment in Central Malawi. Rosemary Botha_26 February 2020
1. Market information and farmers’ access to structured
markets
International Food Policy Research Institute
Lilongwe | February 26, 2020
Dennis O. Ochieng, Rosemary Botha and Bob Baulch
Evidence from an action research experiment in central Malawi
2. Introduction
• Smallholder farmers (SHF) access to markets is important for agricultural
growth, food security and nutrition and poverty reduction.
• Market information is important in facilitating access to markets – it guides
decision making on where, what, when and to whom to sell.
• SHF often lack information on prices and market opportunities.
• Structured markets (e.g., commodity exchanges, vertically integrated supply
chains, contract farming) can stabilize prices by:
Aggregating large volumes– more predictable prices to farmers/traders
Providing a more predictable trade environment – which facilitates planning of
production and marketing
2
3. Introduction continued…
• Despite potential benefits of structured marketing, uptake by SHFs and traders has
been minimal in Malawi
5 percent of total tonnage under WRS belonged to farmers; 5 percent belonged to farmer
association (Thunde & Baulch 2019)
16 percent of small traders had ever used structured trade: Commex, WRS, competitive
tenders (Ochieng et. al. 2019)
Theory of change/hypothesis:
Providing information on prices at a local commodity exchange to SHFs and traders
would increase sales through commodity exchanges/other structured markets and
increase the prices they are paid.
3
4. Objectives of the study
To assess the impact of providing price information on:
1. Quantities of maize and soybean sold (small farmers and traders)
2. Sales prices of maize and soybean (small farmers and traders)
3. Quantity sold through commodity exchanges/other structured
markets (small farmers and traders)
4. Level of commercialization of small farmers (proportion of harvest
sold)
4
5. Methods
• Action research experiment
• Purposively sampled 4 districts
(Mchinji, Kasungu, Dowa, Ntchisi)
• Selected 2 Farmers Associations (FAs)
per district
• 100 farmers/district (50 treated + 50 control
farmers)
• Baseline (March – April 2019)=416
farmers and 78 traders
• End-line (September 2019)=399 and
68 traders (4% and 13% attrition)
5
Source: Authors’ construction.
Figure 1: Study districts and farmer groups
6. Methods continued…
The Intervention
• Weekly price information from a local commodity exchange was
provided to treated SHFs through SMS during the 2019 main harvest
season.
• Price info was also shared through the farmers associations in the
fortnight meetings.
Farm household survey data: socioeconomic activities; maize and soybean
trading; access to structured markets; market information sources, incomes
(2017/2018 and 2018/2019 agricultural seasons)
Trader surveys: maize and soybean sales; sales through structured markets,
market information sources i.e., commodity exchanges
6
7. Methods continued…
• Balance tests: show covariate imbalance between treatment and control groups
• Kernel Propensity Score Matching (PSM); was used to correct for the
imbalance and create statistically comparable groups
• Difference-in-Difference approach with two rounds of data was used
to estimate the impact of the intervention on farmers
7
8. Findings
Descriptive statistics
• About 80 percent of HH heads
were men
• HH heads’ age=47 years
• HH size=5 members with a
generally high dependency
ratio (1:3)
• Average farm size =3.8 acres
with a low level of crop
diversity
8
Variable Full sample
Age of head 47.38 (13.79)
Gender of head 0.80 (0.01)
Education of head 6.50 (3.60)
Family size 5.37 (1.95)
Dependency ratio 0.32 (0.21)
Farm size 3.76 (4.01)
Number of crops 2.92 (0.03)
Distance_market 4.83 (5.30)
Distance_whse 1.68 (3.12)
Off-farm income (dummy) 0.41 (0.49)
Household income 413.14 (926.78)
Market availability 0.64 (0.02)
Maize sold 284.63 (25.38)
Soybean sold 897.92 (23.16)
Maize selling price 126.83 (1.89)
Soybean selling price 209.51 (2.28)
Maize commercialization 0.16 (0.20)
Soybean commercialization 0.77 (0.23)
Table 1: Profile of farmers
9. Findings continued…
9
Descriptive statistics
• Infrastructure is important to
facilitate trade
• Farmers had access to roads, public
transport system and extension
services.
• About 20 percent did not own
storage facilities
0% 20% 40% 60% 80%100%
ACE warehouse
Electricity (Escom)
Storage facility not owned
Market (Input/output)
Tarmac road
Agricultural Extension agent
Public transport system
Figure 2: Farmers’ access to infrastructure
10. Means for
Treatment and
Control Groups
differ for some
variables
Variable Treated Control Mean difference
(Control-Treated)
Age of head 46.68 (13.90) 48.08 (13.67) 1.39
Gender of head 0.79 (0.40) 0.81 (0.39) 0.01
Education of head 6.82 (3.51) 6.18 (3.66) -0.64**
Family size 5.49 (1.92) 5.25 (1.98) -0.24*
Dependency ratio 0.33 (0.19) 0.31 (0.22) -0.02
Farm size (acres) 4.29 (4.99) 3.22 (2.55) -1.07***
Number of crops 2.97 (0.05) 2.87 (0.04) -0.09
Distance_market 4.57 (4.57) 5.10 (5.92) 0.53
Distance_whse 1.85 (3.59) 1.50 (2.57) -0.35
Off-farm income (dummy) 0.39 (0.49) 0.44 (0.49) 0.05
Household income 448.81 (941.87) 377.04 (910.98) -71.76
Market availability 0.64 (0.02) 0.64 (0.02) -0.00
Maize sold (kgs) 291.87 (41.81) 277.29 (28.60) -14.58
Soybean sold (kgs) 530.03 (41.86) 256.14 (13.59) -273.90***
Maize selling price 128.47 (2.75) 125.11 (2.58) -3.37
Soybean selling price 217.89 (3.21) 200.32 (3.15) -17.57***
Commercialization level 0.16 (0.20) 0.16 (0.20) -0.00
Soybean commercialization 0.80 (0.21) 0.74 (0.24) -0.06***
• Balance tests are rejected for
education of head, family size,
farm size, soybeans sold and
soybean price.
• Some of the differences in means
(e.g., farm size, soybeans sold)
are large
10
Table 2: Balance tests
11. Matching used to ensure treatment and
control groups are statistically similar
11
Before After
12. Findings continued…
Quantity sold (kgs) Selling price (MWK/kg)
Before After DiD Before After DiD
Maize
Coefficient 87.80 -68.5 -156.3** 2.86 9.32 6.46
Std.error 95.89 81.97 50.10 6.78 9.25 13.53
N 391 407 797 214 220 434
Soybean
Coefficient 281.80 226.8 -55.02 9.78 26.33* 16.54
Std.error 183.94 200.5 59.76 16.21 13.14 11.05
N 380 371 751 357 353 710
• Significant reduction in
quantity of maize sold
SHF may have target income
• No significant impact on
quantity of soybean sold
• Positive but not statistically
significant on prices farmers
received
Camacho and Conover (2019)
Tadesse and Bhahigwa (2015)
Fafchamps and Minten (2014)
12
Source: IFPRI survey (2019)
Note: DiD = difference in difference estimates; before = before the intervention; after = after
the intervention; means and standard errors are estimated by linear regressions.
Table 3: Impact on quantities sold and prices of maize and soybeanImpact on quantities sold &
selling prices
13. Findings continued…
Sales through structured markets Commercialization rate
Before After DiD Before After DiD
Maize
Coefficient 0.04 0.03 -0.02 0.03 -0.01 -0.04
Std.error 0.04 0.03 0.01 0.05 0.03 0.04
N 408 389 797 406 389 795
Soybean
Coefficient 0.07 0.18 0.11 0.07 0.04 -0.03
Std.error 0.04 0.16 0.17 0.04 0.07 0.06
N 408 389 797 370 368 738
• No statistically
significant effect on
sales through
structured markets or
commercialization rate
13
Source: IFPRI survey (2019)
Note: DiD = difference in difference estimates; before = before the intervention; after = after
the intervention; means and standard errors are estimated by linear regressions.
Table 4: Impact on sales thru structured markets and commercialization
Impact on sales through
structured markets and
commercialization
14. Findings continued…
Variables Baseline
(n=78)
Endline
(n=68)
Difference
(Endline-
Baseline)
Proportion of traders aware of ACE 71.79 97.06 25.27***
Proportion of traders that used ACE services 21.43 83.33 61.9***
Maize Sales (in MT) 200.34 215.47 15.13*
Soybean Sales (in MT) 246.96 90.89 -156.07
Maize price 139.10 201.43 62.33***
Soybean price 205.14 293.04 87.9***
Sales share of maize through structured markets
(%)
17.94 23.40 5.46
Sales share of soybean through structured markets
(%)
22.37 23.89 1.52
Before/After comparison
between baseline and end line
• Awareness of ACE increased
by 25 percent
• Use of ACE services increased
by 62 percent
• Sales prices increased for
both maize and soybean
14
Source: IFPRI survey (2019)
Note: Mean difference tests done by Wilcoxon rank test for matched samples
Table 5: Traders (Mean comparison tests)
15. Summary and conclusions
• Significant reduction in quantity of maize sold by farmers.
• Increase in maize and soybean selling prices for traders.
• Need to sensitize small farmers and traders on the quality and
quantity standards required for structured markets.
• Provision of price information alone is not enough to facilitate small
farmers’ use of structured markets.
15
16. Acknowledgements
This research was made possible with funding from the United States
Agency for International Development (USAID Malawi) and the UK
Department for International Development (DFID Malawi).
END
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