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The effects of the Food Reserve Agency on maize market prices in Zambia

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Listed author(s):
  • Nicole M. Mason
  • Robert J. Myers

Abstract

This policy synthesis estimates the effects of the Zambia Food Reserve Agency’s (FRA) activities on maize market prices in the country. The FRA, a government parastatal strategic food reserve/maize marketing board, buys maize at a pan-territorial price that typically exceeds wholesale market prices in major maize producing areas. It then exports the maize or sells it domestically at prices determined by tender, at auction, or administratively. In deficit production years, the Agency often imports maize and sells it to select large-scale millers at below-market prices.

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File URL: http://hdl.handle.net/10.1111/agec.12004
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Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 44 (2013)
Issue (Month): 2 (03)
Pages: 203-216

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Handle: RePEc:bla:agecon:v:44:y:2013:i:2:p:203-216
DOI: agec.12004
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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.
  2. Elliot Mghenyi & Robert J. Myers & T.S. Jayne, 2011. "The effects of a large discrete maize price increase on the distribution of household welfare and poverty in rural Kenya-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 343-356, 05.
  3. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  4. Nkonde, Chewe & Mason, Nicole M. & Sitko, Nicholas J. & Jayne, Thomas S., 2011. "Who Gained and Who Lost from Zambia's 2010 Maize Marketing Policies?," Food Security Collaborative Working Papers 99610, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  5. Ben S. Bernanke & Ilian Mihov, 1998. "Measuring Monetary Policy," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 869-902.
  6. Tembo, Gelson & Chapoto, Antony & Jayne, Thomas S. & Weber, Michael T., 2009. "Fostering Agricultural Market Development in Zambia," Food Security Collaborative Working Papers 54501, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  7. Govereh, Jones & Jayne, Thomas S. & Chapoto, Antony, 2008. "Assessment of Alternative Maize Trade and Market Policy Interventions in Zambia," Food Security Collaborative Working Papers 54492, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  8. Myers, Robert J., 2006. "On the costs of food price fluctuations in low-income countries," Food Policy, Elsevier, vol. 31(4), pages 288-301, August.
  9. Michael T. Weber & John M. Staatz & Eric W. Crawford & Richard H. Bernsten & John S. Holtzman, 1988. "Informing Food Security Decisions in Africa: Empirical Analysis and Policy Dialogue," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(5), pages 1044-1052.
  10. Chapoto, Antony & Jayne, Thomas S., 2009. "Effects of Maize Marketing and Trade Policy on Price Unpredictability in Zambia," Food Security Collaborative Working Papers 54499, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  11. Zulu, Ballard & Jayne, Thomas S. & Beaver, Margaret, 2007. "Smallholder Household Maize Production and Marketing Behavior in Zambia and Its Implications for Policy," Food Security Collaborative Working Papers 54481, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  12. Govereh, Jones & Malawo, Emma & Lungu, Tadeyo & Jayne, Thomas S. & Chinyama, Kasweka & Chilonda, Pius, 2009. "Trends and Spatial Distribution of Public Agricultural Spending in Zambia: Implication for Agricultural Productivity Growth," Food Security Collaborative Working Papers 54497, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  13. 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.
  14. Bellemare, Marc F. & Barrett, Christopher B. & Just, David R., 2010. "The Welfare Impacts of Commodity Price Fluctuations: Evidence from Rural Ethiopia," MPRA Paper 24457, University Library of Munich, Germany.
  15. Rosamond L. Naylor & Walter P. Falcon, 2010. "Food Security in an Era of Economic Volatility," Population and Development Review, The Population Council, Inc., vol. 36(4), pages 693-723, December.
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Cited by:

  1. Mather, David & Zavale, Hélder & Cunguara, Benedito & Tschirley, David, 2016. "Analysis of Food Commodity Prices in Mozambique before and after the 2007/08 International Food Price Crisis," Miscellaneous Publications 251854, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Mason, Nicole M. & Jayne, Thomas S. & Myers, Robert J., 2011. "Zambian Smallholder Behavioral Responses To Food Reserve Agency Activities," Food Security Collaborative Working Papers 120768, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Sitko, Nicholas J. & Kuteya, Auckland N., 2013. "The Maize Price Spike of 2012/13: Understanding the Paradox of High Prices despite Abundant Supplies," Food Security Collaborative Working Papers 171871, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  4. Kornher, Lukas & Kalkuhl, Matthias, 0. "Food Price Volatility in Developing Countries and its Determinants," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 52.
  5. Lukas Kornher & Matthias Kalkuhl, 2015. "A Typology for Price-related Food and Nutrition Risks and Policy Responses," FOODSECURE Technical papers 5, LEI Wageningen UR.
  6. Chapoto, Antony & Haggblade, Steven & Hichaambwa, Munguzwe & Kabwe, Stephen & Longabaugh, Steven & Sitko, Nicholas J. & Tschirley, David L., 2012. "Agricultural Transformation in Zambia: Alternative Institutional Models for Accelerating Agricultural Productivity Growth, and Commercialization," Food Security Collaborative Working Papers 132339, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  7. Matthias Kalkuhl & Lukas Kornher & Matthias Kalkuhl & Irfan Mujahid, 2015. "Food price volatility in developing countries – the role of trade and storage," EcoMod2015 8415, EcoMod.
  8. McBride, Linden, 2014. "Exploring food commodity price risk preferences among Tanzanian households," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172437, Agricultural and Applied Economics Association.
  9. Resnick, Danielle & Thurlow, James, 2014. "The political economy of Zambia’s recovery: Structural change without transformation?:," IFPRI discussion papers 1320, International Food Policy Research Institute (IFPRI).
  10. Zavale, Helder & Myers, Robert & Tschirley, David, 2015. "Market Level Effects of World Food Program Local and Regional Procurement of Food Aid in Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 211862, International Association of Agricultural Economists.
  11. Fung, Winnie & Liverpool-Tasie, Saweda & Mason, Nicole & Uwaifo Oyelere, Ruth, 2015. "Can Crop Purchase Programs Reduce Poverty and Improve Welfare in Rural Communities? Evidence from the Food Reserve Agency in Zambia," IZA Discussion Papers 9361, Institute for the Study of Labor (IZA).
  12. Kuteya, Auckland N. & Sitko, Nicholas J., 2014. "Creating Scarcity From Abundance: Bumper Harvests, High Prices, And The Role Of State Interventions In Zambian Maize Markets," Food Security Collaborative Policy Briefs 171877, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  13. Jolejole-Foreman, Maria Christina & Mallory, Mindy L. & Baylis, Katherine R., 2013. "Impact of Wheat and Rice Export Ban on Indian Market Integration," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150595, Agricultural and Applied Economics Association.
  14. Mofya-Mukuka, Rhoda & Shipekesa, Arthur M., 2013. "Value Chain Analysis of the Groundnuts Sector in the Eastern Province of Zambia," Food Security Collaborative Working Papers 171869, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  15. Ricker-Gilbert, Jacob E. & Mason, Nicole M. & Jayne, Thomas S. & Darko, Francis Addeah & Tembo, Solomon, 2013. "What are the effects of input subsidy programs on equilibrium maize prices? Evidence from Malawi and Zambia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149259, Agricultural and Applied Economics Association.
  16. Sitko, Nicholas & Jayne, T.S., 2014. "Demystifying the Role of Grain Assemblers in the Rural Maize Markets of Eastern and Southern Africa," Food Security Collaborative Working Papers 176628, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  17. Kalkuhl, Matthias & von Braun, Joachim & Torero, Maximo, 2016. "Food Price Volatility and Its Implications for Food Security and Policy," MPRA Paper 72164, University Library of Munich, Germany.
  18. Matthias Kalkuhl & Mekbib Haile & Lukas Kornher & Marta Kozicka, 2015. "Cost-benefit framework for policy action to navigate food price spikes. FOODSECURE Working Paper No 33," FOODSECURE Working papers 33, LEI Wageningen UR.
  19. 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, vol. 54(C), pages 56-67.

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