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Effects of Market Reform on Access to Food by Low-Income Households: Evidence from Four Countries in Eastern and Southern Africa

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Author Info

  • Jayne, Thomas S.
  • Rubey, Lawrence
  • Tschirley, David L.
  • Mukumbu, Mulinge
  • Chisvo, Munhamo
  • Santos, Ana Paula
  • Weber, Michael T.
  • Diskin, Patrick K.

Abstract

This report analyzes the effects of grain market reform and food subsidy elimination in Eastern and Southern Africa on access to food for low-income consumers. The report also assesses the potential to use "self-targeted commodities" to improve vulnerable groups access to food though market development strategies and food aid programs. While much research has been devoted to understanding how producers and traders would respond to reform of staple food markets, relatively little is known about the potential or actual responses by consumers. The report presents recent findings from six household-level surveys in urban areas of Zimbabwe, Kenya, Zambia, and Mozambique between 1991 and 1994. Secondary data from South Africa and Malawi are also presented where available. The report highlights seven conclusions: (1) Consumers subsidies on refined maize meal in Kenya, Zambia, Zimbabwe, Mozambique, and South Africa have not necessarily promoted food security, because they have entrenched a relatively high-cost marketing system and impeded the development of lower-cost channels from developing. (2) The conventional wisdom of rigid urban preferences for refined maize meal was greatly exaggerated by policy restrictions under the controlled marketing systems and subsidies on refined maize meal. (3) Since the removal of refined meal subsidies and controls on maize movement, retail prices of hammer-milled whole meal have ranged from 55% to 80% those of refined meal manufactured by large-scale millers. (4) In all countries surveyed, there is an inverse relationship between whole meal consumption and household income, and a positive relationship between refined meal consumption and household income. (5) New investment in hammer milling has increased rapidly since market reform. (6) Small-scale mills have a higher labor-to-investment cost ratio and labor-to-output ratio than large-scale milling. (7) Yellow maize, which is typically available at a price discount relative to white maize, also appears to be a "self-targeted" food.

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Bibliographic Info

Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Food Security International Development Papers with number 54052.

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Date of creation: 1995
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Handle: RePEc:ags:mididp:54052

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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 and Poverty; Marketing; Downloads July 2008 - June 2009: 12;

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Cited by:
  1. Poulton, Colin & Dorward, Andrew & Jowett, A. & Peacock, C. & Urey, Ian, 2004. "Priorities and Preconditions for Successful Investment in Smallholder Agriculture in Sub-Saharan Africa," 2004 Inaugural Symposium, December 6-8, 2004, Nairobi, Kenya 9516, African Association of Agricultural Economists (AAAE).
  2. Tschirley, David L. & Weber, Michael T., 1996. "Mozambique Food Security Success Story," Food Security International Development Policy Syntheses 11278, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Neil McCulloch & Bob Baulch & Milasoa Cherel-Robson, 2000. "Poverty, Inequality and Growth in Zambia during the 1990s," Econometrics 0004004, EconWPA.
  4. Jayne, Thomas S. & Mukumbu, Mulinge & Duncan, John & Staatz, John M. & Howard, Julie A. & Lundberg, Mattias K.A. & Aldridge, Kim & Nakaponda, Bethel & Ferris, John N. & Keita, Francis & Sanankoua, Abd, 1996. "Trends in Real Food Prices in Six Sub-Saharan African Countries," Food Security International Development Working Papers 54695, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  5. Govereh, Jones & Haggblade, Steven & Nielson, Hunter & Tschirley, David L., 2008. "Maize Market Sheds in Eastern and Southern Africa. Report 1," Food Security Collaborative Working Papers 55374, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. SIMA, Technical Team, 1996. "Mozambique's Food Security Success Story," Food Security Collaborative Policy Briefs 55195, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  7. 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).
  8. Tschirley, David L. & Weber, Michael T., 1996. "Relato de Sucesso da Seguranca Alimentar em Mocambique," Food Security International Development Policy Syntheses 11431, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  9. SIMA, Technical Team, 1996. "Relato do Sucesso da Seguran├ža Alimentar em Mocambique," Food Security Collaborative Policy Briefs 55196, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  10. Jayne, Thomas S. & Rubey, Lawrence & Chisvo, Munhamo & Weber, Michael T., 1996. "Zimbabwe Food Security Success Story: Maize Market Reforms Improve Access to Food Even While Government Eliminates Food Subsidies," Food Security International Development Policy Syntheses 11326, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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