Market structure and coherence of international cooperation: the case of the dairy sector in Malawi
AbstractA supply chain in disarray can be identified not only as a barrier to growth for the agricultural sector but also as one to achieving food security in a country because it may lead to either a deficiency in food production and/or too high prices. Using the dairy sector of Malawi as an example, the purpose of this paper is to discuss the coherence between market structure and the development strategy pursued by international donors via. Within Malawi the dairy sector may be characterised as a segmented market: with both formal and informal milk markets, with smallholder producers serving both markets. The formal market includes a reducing number of processing firms operating with idle capacity and selling dairy products to an affluent segment of the urban population, whilst the informal market comprises the sale of unprocessed milk products to the less affluent urban population and also rural areas. In this context, cooperative international action, conducted through agencies from a range of countries, is targeted at improving the efficiency of the formal supply chain and also the creation of local supply chains that sell processed products directly to poor consumers. The paper discusses reasons why these two cooperation strategies, given the structure of the sector, may potentially conflict with each other, the need to address the degree of market imperfection of the formal sector and the desirability of ex-ante coordination of plans amongst donors.
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Bibliographic InfoPaper provided by Scottish Agricultural College, Land Economy Research Group in its series Working Papers with number 131464.
Date of creation: Aug 2012
Date of revision:
Malawi dairy supply chain; development economics; industrial organisation.; Food Security and Poverty; International Development;
Other versions of this item:
- Revoredo-Giha, Cesar, 2012. "Market Structure and Coherence of International Cooperation: The Case of the Dairy Sector in Malawi," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125274, International Association of Agricultural Economists.
- NEP-AFR-2012-09-03 (Africa)
- NEP-AGR-2012-09-03 (Agricultural Economics)
- NEP-ALL-2012-09-03 (All new papers)
- NEP-HME-2012-09-03 (Heterodox Microeconomics)
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- Ecker, Olivier & Qaim, Matin, 2011. "Analyzing Nutritional Impacts of Policies: An Empirical Study for Malawi," World Development, Elsevier, vol. 39(3), pages 412-428, March.
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- Revoredo-Giha, Cesar & Arakelyan, Irina & Chalmers, Neil & Chitika, Rollins, 2013. "How Responsive to Prices is the Supply of Milk in Malawi?," Working Papers 152214, Scottish Agricultural College, Land Economy Research Group.
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