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The Maize Farm-Market Price Spread in Kenya and Uganda

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Author Info

  • Takashi Yamano

    (Foundation for Advanced Studies on International Development
    National Graduate Institute for Policy Studies)

  • Ayumi Arai

    (National Graduate Institute for Policy Studies)

Abstract

In this chapter, we analyze the farm-market price spreads of maize in Kenya and Uganda to examine how agricultural sectors are integrated with local markets. The farm-market price spread is calculated by subtracting the farm-gate price from the market price at the nearest maize market. We find that the farm-market price spread of maize is about 15 and 33 percent of the market price in Kenya and Uganda, respectively. In both countries, the price spread increases by 2 percentage points for each additional driving hour away from the nearest maize market. While the former finding suggests that the overall marketing costs are lower in Kenya than in Uganda, the latter finding indicates that reductions in transportation costs will increase the farmer prices of maize in both countries.

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Bibliographic Info

Paper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 10-25.

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Length: 32 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:ngi:dpaper:10-25

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Keywords: Price Spread; Market; Maize; Kenya; Uganda;

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References

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  1. 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.
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Cited by:
  1. 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, Elsevier, vol. 54(C), pages 56-67.

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