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Does the Current Sugar Market Structure Benefit Consumers and Sugarcane Growers?

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  • Chisanga, Brian
  • Meyer, Ferdinand H.
  • Winter-Nelson, Alex
  • Sitko, Nicholas J.

Abstract

Over the years, the sugar sector has experienced tremendous growth which has been driven by increased Foreign Direct Investment (FDI). According to the United Nation’s Food and Agricultural Organisation (FAO 2013), raw sugar production rose from 135,000 tons in 1990 to 430,500 tons by 2012, while exports grew from less than a thousand tons to 273,000 tons over the same period FAO 2013). While increased investments have generated growth, they have also tended to create market structures in which a single multinational is dominant. This concentration raises concerns about the functioning of these increasingly important markets and the efficiency and equity implications.

Suggested Citation

  • Chisanga, Brian & Meyer, Ferdinand H. & Winter-Nelson, Alex & Sitko, Nicholas J., 2014. "Does the Current Sugar Market Structure Benefit Consumers and Sugarcane Growers?," Food Security Collaborative Working Papers 188569, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  • Handle: RePEc:ags:midcwp:188569
    DOI: 10.22004/ag.econ.188569
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    References listed on IDEAS

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    1. Mofya-Mukuka, Rhoda & Abdulai, Awudu, 2013. "Effects of Policy Reforms on Price Transmission in Coffee Markets: Evidence from Zambia and Tanzania," Food Security Collaborative Working Papers 171870, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. World Bank, 2009. "Zambia - Commercial Value Chains in Zambian Agriculture : Do Smallholders Benefit?," World Bank Publications - Reports 3075, The World Bank Group.
    3. Krivonos, Ekaterina, 2004. "The impact of coffee market reforms on producer prices and price transmission," Policy Research Working Paper Series 3358, The World Bank.
    4. Traub, Lulama Ndibongo & Myers, Robert J. & Jayne, Thomas S. & Meyer, Ferdinand H., 2010. "Measuring Integration and Efficiency in Maize Grain Markets: The Case of South Africa and Mozambique," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96644, African Association of Agricultural Economists (AAAE).
    5. Jochen Meyer & Stephan von Cramon‐Taubadel, 2004. "Asymmetric Price Transmission: A Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 581-611, November.
    6. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
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    Cited by:

    1. Faaiqa Hartley & Dirk van Seventer & Paul Chimuka Samboko & Channing Arndt, 2019. "Economy-wide implications of biofuel production in Zambia," Development Southern Africa, Taylor & Francis Journals, vol. 36(2), pages 213-232, March.
    2. Paul C. Samboko & Mitelo Subakanya & Cliff Dlamini, 2017. "Potential biofuel feedstocks and production in Zambia," WIDER Working Paper Series wp-2017-47, World Institute for Development Economic Research (UNU-WIDER).
    3. Faaiqa Hartley & Dirk van Seventer & Paul Chimuka Samboko & Channing Arndt, 2019. "Economy-wide implications of biofuel production in Zambia," Development Southern Africa, Taylor & Francis Journals, vol. 36(2), pages 213-232, March.
    4. Haggblade, Steven & Babu, Suresh & Harris, Jody & Mkandawire, Elizabeth & Nthani, Dorothy & Hendriks, Sheryl L., 2016. "Drivers of Micronutrient Policy Change in Zambia: An Application of the Kaleidoscope Model," Food Security Collaborative Working Papers 245110, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Manda, S. & Tallontire, A. & Dougill, A.J., 2020. "Outgrower schemes and sugar value-chains in Zambia: Rethinking determinants of rural inclusion and exclusion," World Development, Elsevier, vol. 129(C).
    6. Haggblade, Steven & Babu, Suresh & Harris, Jody & Mkwandawire, Elizabeth & Nthani, Dorothy & Hendriks, Sheryl L., 2016. "Drivers Of Micronutrient Policy Change In Zambia: An Application Of The Kaleidoscope Model," Feed the Future Innovation Lab for Food Security Policy Research Papers 259047, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    7. Resnick, Danielle & Haggblade, Steven & Babu, Suresh & Hendriks, Sheryl L. & Mather, David, 2018. "The Kaleidoscope Model of policy change: Applications to food security policy in Zambia," World Development, Elsevier, vol. 109(C), pages 101-120.
    8. Paul C. Samboko & Mitelo Subakanya & Cliff Dlamini, 2017. "Potential biofuel feedstocks and production in Zambia," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    9. Haggblade, Steven & Babu , Suresh, 2017. "A User’S Guide To The Kaleidoscope Model: Practical Tools For Understanding Policy Change," Feed the Future Innovation Lab for Food Security Policy Research Papers 264396, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).

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