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The effects of the Food Reserve Agency on maize market prices in Zambia

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  • Nicole M. Mason
  • Robert J. Myers

Abstract

This policy synthesis estimates the effects of the Zambia Food Reserve Agency’s (FRA) activities on maize market prices in the country. The FRA, a government parastatal strategic food reserve/maize marketing board, buys maize at a pan-territorial price that typically exceeds wholesale market prices in major maize producing areas. It then exports the maize or sells it domestically at prices determined by tender, at auction, or administratively. In deficit production years, the Agency often imports maize and sells it to select large-scale millers at below-market prices.

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File URL: http://hdl.handle.net/10.1111/agec.12004
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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 44 (2013)
Issue (Month): 2 (03)
Pages: 203-216

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Handle: RePEc:bla:agecon:v:44:y:2013:i:2:p:203-216

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References

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  1. Myers, Robert J., 2006. "On the costs of food price fluctuations in low-income countries," Food Policy, Elsevier, vol. 31(4), pages 288-301, August.
  2. Zulu, Ballard & Jayne, Thomas S. & Beaver, Margaret, 2007. "Smallholder Household Maize Production and Marketing Behavior in Zambia and Its Implications for Policy," Food Security Collaborative Working Papers 54481, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Ben S. Bernanke & Ilian Mihov, 1995. "Measuring Monetary Policy," NBER Working Papers 5145, National Bureau of Economic Research, Inc.
  4. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  5. Nkonde, Chewe & Mason, Nicole M. & Sitko, Nicholas J. & Jayne, Thomas S., 2011. "Who Gained and Who Lost from Zambia's 2010 Maize Marketing Policies?," Food Security Collaborative Working Papers 99610, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Elliot Mghenyi & Robert J. Myers & T.S. Jayne, 2011. "The effects of a large discrete maize price increase on the distribution of household welfare and poverty in rural Kenya-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 343-356, 05.
  7. Jayne, T. S. & Jones, Stephen, 1997. "Food marketing and pricing policy in Eastern and Southern Africa: A survey," World Development, Elsevier, vol. 25(9), pages 1505-1527, September.
  8. Govereh, Jones & Malawo, Emma & Lungu, Tadeyo & Jayne, Thomas S. & Chinyama, Kasweka & Chilonda, Pius, 2009. "Trends and Spatial Distribution of Public Agricultural Spending in Zambia: Implication for Agricultural Productivity Growth," Food Security Collaborative Working Papers 54497, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  9. Chapoto, Antony & Jayne, Thomas S., 2009. "Effects of Maize Marketing and Trade Policy on Price Unpredictability in Zambia," Food Security Collaborative Working Papers 54499, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  10. Bellemare, Marc F. & Barrett, Christopher B. & Just, David R., 2010. "The Welfare Impacts of Commodity Price Fluctuations: Evidence from Rural Ethiopia," MPRA Paper 24457, University Library of Munich, Germany.
  11. Govereh, Jones & Jayne, Thomas S. & Chapoto, Antony, 2008. "Assessment of Alternative Maize Trade and Market Policy Interventions in Zambia," Food Security Collaborative Working Papers 54492, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  12. T. S. Jayne & Robert J. Myers & James Nyoro, 2008. "The effects of NCPB marketing policies on maize market prices in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 313-325, 05.
  13. Rosamond L. Naylor & Walter P. Falcon, 2010. "Food Security in an Era of Economic Volatility," Population and Development Review, The Population Council, Inc., vol. 36(4), pages 693-723, December.
  14. Tembo, Gelson & Chapoto, Antony & Jayne, Thomas S. & Weber, Michael T., 2009. "Fostering Agricultural Market Development in Zambia," Food Security Collaborative Working Papers 54501, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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Citations

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Cited by:
  1. Chapoto, Antony & Haggblade, Steven & Hichaambwa, Munguzwe & Kabwe, Stephen & Longabaugh, Steven & Sitko, Nicholas J. & Tschirley, David L., 2012. "Agricultural Transformation in Zambia: Alternative Institutional Models for Accelerating Agricultural Productivity Growth, and Commercialization," Food Security Collaborative Working Papers 132339, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Kornher, Lukas & Kalkuhl, Matthias, 2013. "Food price volatility in developing countries and its determinants," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156132, German Association of Agricultural Economists (GEWISOLA).
  3. Jolejole-Foreman, Maria Christina & Mallory, Mindy L. & Baylis, Katherine R., 2013. "Impact of Wheat and Rice Export Ban on Indian Market Integration," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150595, Agricultural and Applied Economics Association.
  4. Resnick, Danielle & Thurlow, James, 2014. "The political economy of Zambia’s recovery: Structural change without transformation?:," IFPRI discussion papers 1320, International Food Policy Research Institute (IFPRI).
  5. Kuteya, Auckland N. & Sitko, Nicholas J., 2014. "Creating Scarcity From Abundance: Bumper Harvests, High Prices, And The Role Of State Interventions In Zambian Maize Markets," Food Security Collaborative Policy Briefs 171877, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Mason, Nicole M. & Jayne, Thomas S. & Myers, Robert J., 2011. "Zambian Smallholder Behavioral Responses To Food Reserve Agency Activities," Food Security Collaborative Working Papers 120768, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  7. Ricker-Gilbert, Jacob & Mason, Nicole & Jayne, Thomas & Darko, Francis Addeah & Tembo, Solomon, 2013. "What are the effects of input subsidy programs on equilibrium maize prices? Evidence from Malawi and Zambia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149259, Agricultural and Applied Economics Association.
  8. Sitko, Nicholas J. & Kuteya, Auckland N., 2013. "The Maize Price Spike of 2012/13: Understanding the Paradox of High Prices despite Abundant Supplies," Food Security Collaborative Working Papers 171871, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  9. Sitko, Nicholas J. & Jayne, T.S., 2014. "Exploitative Briefcase Businessmen, Parasites, and Other Myths and Legends: Assembly Traders and the Performance of Maize Markets in Eastern and Southern Africa," World Development, Elsevier, vol. 54(C), pages 56-67.

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