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Do Farmers Really Benefit from High Food Prices? Balancing Rural Interest in Kenya's Maize Pricing and Marketing Policy

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  • Jayne, Thomas S.
  • Yamano, Takashi
  • Nyoro, James K.
  • Awuor, Tom

Abstract

This paper uses information from rural household surveys in 24 districts in Kenya to inform current debate on maize pricing policy. Specifically, it sheds light on how rural farm households are being affected by governmental efforts to support maize price levels. Using information on landed import costs of white maize from South Africa with and without the import tariff, it simulates the effects of eliminating the tariff on rural smallholder farmers, large-scale farmers, and urban consumers. It then examines the implications of these findings for the design of strategies to promote agricultural productivity and rural income growth.

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Bibliographic Info

Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Food Security Collaborative Working Papers with number 55149.

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Date of creation: 2001
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Handle: RePEc:ags:midcwp:55149

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Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
Phone: (517) 355-4563
Fax: (517) 432-1800
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Web page: http://www.aec.msu.edu/agecon/
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Keywords: Food Security; Food Policy; Kenya; Maize; Marketing; Demand and Price Analysis; Marketing; Q18;

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References

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  1. Jayne, T. S. & Chisvo, Munhamo, 1991. "Unravelling Zimbabwe's food insecurity paradox: Implications for grain market reform in Southern Africa," Food Policy, Elsevier, vol. 16(4), pages 319-329, August.
  2. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331 Elsevier.
  3. 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.
  4. C. Peter Timmer, 1997. "Farmers and Markets: The Political Economy of New Paradigms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 621-627.
  5. Nyoro, James K. & Kiiru, M.W. & Jayne, Thomas S., 1999. "Evolution of Kenya's Maize Marketing Systems in the Post-liberalization Era," Food Security Collaborative Working Papers 55148, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Argwings-Kodhek, Gem & Jayne, Thomas S., 1996. "Relief through Development: Maize Market Liberalization in Urban Kenya," Food Security International Development Policy Syntheses 11298, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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Cited by:
  1. Nyoro, James K. & Kirimi, Lilian & Jayne, Thomas S., 2004. "Competitiveness of Kenyan and Ugandan Maize Production: Challenges for the Future," Food Security Collaborative Working Papers 55158, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Sahlén, Linda, 2008. "The Impacts of Food- and Oil Price Shocks on the Namibian Economy: the Role of Water Scarcity," UmeÃ¥ Economic Studies 758, Umeå University, Department of Economics.
  3. Nyoro, James K. & Wanzala, Maria N. & Awour, Tom, 2001. "Increasing Kenya's Agricultural Competitiveness: Farm Level Issues," Food Security Collaborative Working Papers 55151, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  4. Aksoy , M. Ataman & Isik-Dikmelik, Aylin, 2008. "Are low food prices pro-poor ? net food buyers and sellers in low-income countries," Policy Research Working Paper Series 4642, The World Bank.
  5. Maitre d'Hotel, Elodie & le Cotty, Tristan & Jayne, Thomas S., 2012. "Is A Public Regulation Of Food Price Volatility Feasible In Africa? An Arch Approach In Kenya," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122551, European Association of Agricultural Economists.
  6. Narayanan, Sudha & Gulati, Ashok, 2002. "Globalization and the smallholders," MTID discussion papers 50, International Food Policy Research Institute (IFPRI).
  7. Sahlén, Linda, 2009. "Essays on Environmental and Development Economics - Public Policy, Resource Prices and Global Warming," UmeÃ¥ Economic Studies 762, Umeå University, Department of Economics.
  8. Jayne, Thomas S. & Meyers, Robert J. & Nyoro, James K., 2005. "Effects of Government Maize Marketing and Trade Policies on Maize Market Prices in Kenya," Food Security Collaborative Working Papers 55162, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  9. Winter-Nelson, Alex & Argwings-Kodhek, Gem, 2007. "Distortions to Agricultural Incentives in Kenya," Agricultural Distortions Working Paper 48521, World Bank.
  10. Tavneet Suri, 2009. "Selection and Comparative Advantage in Technology Adoption," NBER Working Papers 15346, National Bureau of Economic Research, Inc.
  11. Sheahan, Megan & Black, Roy & Jayne, Thomas S., 2012. "What is the Scope for Increased Fertilizer Use in Kenya?," Food Security International Development Working Papers 135283, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  12. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
  13. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Farm Productivity and Household Market Participation: Evidence from LSMS Data," 2009 Conference, August 16-22, 2009, Beijing, China 51031, International Association of Agricultural Economists.
  14. Burke, William J. & Jayne, Thomas S. & Freeman, H. Ade & Kristjanson, Patricia, 2007. "Factors Associated with Farm Households’ Movement Into and Out of Poverty in Kenya: The Rising Importance of Livestock," Food Security International Development Working Papers 54563, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  15. Grace, Kathryn & Brown, Molly & McNally, Amy, 2014. "Examining the link between food prices and food insecurity: A multi-level analysis of maize price and birthweight in Kenya," Food Policy, Elsevier, vol. 46(C), pages 56-65.
  16. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Agricultural Prices and Income Distribution among Farmers: A Whole-Household, Multi-Country, Multi-Year Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49314, Agricultural and Applied Economics Association.
  17. Bernard, Munyua & Hellin, Jonathan & Nyikal, Rose Adhiambo & Mburu, John G., 2010. "Determinants for Use of Certified Maize Seed and the Relative Importance of Transaction Costs," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96423, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
  18. Smale, Melinda & Jayne, T.S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
  19. Tavneet Suri, 2006. "Selection and Comparative Advantage in Technology Adoption," Working Papers 944, Economic Growth Center, Yale University.
  20. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  21. Sheahan, Megan & Black, Roy & Jayne, Thomas S., 2012. "Are Farmers Under-Utilizing Fertilizer? Evidence from Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126739, International Association of Agricultural Economists.

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