IDEAS home Printed from https://ideas.repec.org/p/ags/maappb/344109.html

Welfare Impacts of Seasonal Maize Price Fluctuations in Malawi

Author

Listed:
  • Chiwaula, Levison
  • De Weerdt, Joachim
  • Duchoslav, Jan
  • Goeb, Joseph
  • Gondwe, Anderson
  • Jolex, Aubrey

Abstract

Maize price fluctuations in Malawi impact various groups differently, leading to significant seasonal hunger. By analyzing market price data and household surveys, this study quantifies the welfare impacts of these price changes. Stabilizing maize prices could reduce hunger by approximately 185 million person-days during the lean season. Policy recommendations include ensuring predictable maize market interventions, improving the timing of government purchases and sales, and promoting off-farm income-generating activities. These measures can enhance market confidence, encourage home storage of maize, and ultimately stabilize prices, benefiting both consumers and producers.

Suggested Citation

  • Chiwaula, Levison & De Weerdt, Joachim & Duchoslav, Jan & Goeb, Joseph & Gondwe, Anderson & Jolex, Aubrey, 2024. "Welfare Impacts of Seasonal Maize Price Fluctuations in Malawi," Policy Briefs 344109, Purdue University, Department of Agricultural Economics.
    • Handle: RePEc:ags:maappb:344109
    DOI: 10.22004/ag.econ.344109
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/344109/files/PB28_Welfare%20impacts%20of%20seasonal%20maize%20price%20fluctuations%20in%20Malawi.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.344109?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chiwaula, Levison & De Weerdt, Joachim & Duchoslav, Jan & Goeb, Joseph & Gondwe, Anderson & Jolex, Aubrey, 2024. "Welfare impacts of seasonal maize price fluctuations in Malawi," MaSSP working papers 45, International Food Policy Research Institute (IFPRI).
    2. Burke, William J. & Myers, Robert J., 2014. "Spatial equilibrium and price transmission between Southern African maize markets connected by informal trade," Food Policy, Elsevier, vol. 49(P1), pages 59-70.
    3. Nicole M. Mason & Robert J. Myers, 2013. "The effects of the Food Reserve Agency on maize market prices in Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 44(2), pages 203-216, March.
    4. Levin, Jörgen & Vimefall, Elin, 2015. "Welfare impact of higher maize prices when allowing for heterogeneous price increases," Food Policy, Elsevier, vol. 57(C), pages 1-12.
    5. Derek D. Headey & William J. Martin, 2016. "The Impact of Food Prices on Poverty and Food Security," Annual Review of Resource Economics, Annual Reviews, vol. 8(1), pages 329-351, October.
    6. Gilles Quentin Kane & Gwladys Laure Mabah Tene & Jean Joël Ambagna & Isabelle Piot-Lepetit & Fondo Sikod, 2015. "The Impact of Food Price Volatility on Consumer Welfare in Cameroon," WIDER Working Paper Series wp-2015-013, World Institute for Development Economic Research (UNU-WIDER).
    7. Gilbert, Christopher L. & Christiaensen, Luc & Kaminski, Jonathan, 2017. "Food price seasonality in Africa: Measurement and extent," Food Policy, Elsevier, vol. 67(C), pages 119-132.
    8. Just, Richard & Lutz, Ernst & Schmitz, Andrew & Turnovsky, Stephen, 1978. "The distribution of welfare gains from price stabilization : An international perspective," Journal of International Economics, Elsevier, vol. 8(4), pages 551-563, November.
    9. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    10. Gilles Quentin Kane & Gwladys Laure Mabah Tene & Jean Joël Ambagna & Isabelle Piot-Lepetit & Fondo Sikod, 2015. "The impact of food price volatility on consumer welfare in Cameroon," WIDER Working Paper Series 013, World Institute for Development Economic Research (UNU-WIDER).
    11. C.P. Adekunle & S.O. Akinbode & A.M. Shittu & S. Momoh, 2020. "Food price changes and farm households’ welfare in Nigeria: direct and indirect approach," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 409-425, January.
    12. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
    13. Emma C. Stephens & Christopher B. Barrett, 2011. "Incomplete Credit Markets and Commodity Marketing Behaviour," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(1), pages 1-24, February.
    14. Raaj Kumar Sah & Joseph E. Stiglitz, 1987. "Price Scissors and the Structure of the Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(1), pages 109-134.
    15. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    16. Arndt, Channing & Hussain, M. Azhar & Salvucci, Vincenzo & Østerdal, Lars Peter, 2016. "Effects of food price shocks on child malnutrition: The Mozambican experience 2008/2009," Economics & Human Biology, Elsevier, vol. 22(C), pages 1-13.
    17. Turnovsky, Stephen J & Shalit, Haim & Schmitz, Andrew, 1980. "Consumer's Surplus, Price Instability, and Consumer Welfare," Econometrica, Econometric Society, vol. 48(1), pages 135-152, January.
    18. repec:fpr:issbrf:139137 is not listed on IDEAS
    19. Marc F. Bellemare & Christopher B. Barrett & David R. Just, 2013. "The Welfare Impacts of Commodity Price Volatility: Evidence from Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 877-899.
    20. Srinivasan, C.S. & Zanello, Giacomo & Nkegbe, Paul & Cherukuri, Radhika & Picchioni, Fiorella & Gowdru, Nithya & Webb, Patrick, 2020. "Drudgery reduction, physical activity and energy requirements in rural livelihoods," Economics & Human Biology, Elsevier, vol. 37(C).
    21. Emiliano Magrini & Jean Balié & Cristian Morales-Opazo, 2017. "Cereal price shocks and volatility in sub-Saharan Africa: what really matters for farmers’ welfare?," Agricultural Economics, International Association of Agricultural Economists, vol. 48(6), pages 719-729, November.
    22. Timmer, C. Peter, 1989. "Food price policy : The rationale for government intervention," Food Policy, Elsevier, vol. 14(1), pages 17-27, February.
    23. Abdelkrim Araar & Paolo Verme, 2019. "Prices and welfare: a comparative analysis of measures and computational methods," Empirical Economics, Springer, vol. 57(4), pages 1077-1101, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Chiwaula, Levison & De Weerdt, Joachim & Duchoslav, Jan & Goeb, Joseph & Gondwe, Anderson & Jolex, Aubrey, 2024. "Welfare impacts of seasonal maize price fluctuations in Malawi," MaSSP working papers 45, International Food Policy Research Institute (IFPRI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Salvucci, Vincenzo & Tarp, Finn, 2024. "Crises, prices, and poverty – An analysis based on the Mozambican household budget surveys 1996/97–2019/20," Food Policy, Elsevier, vol. 125(C).
    3. Nakelse, Tebila & Dalton, Timothy J. & Hendricks, Nathan P. & Hodjo, Manzamasso, 2018. "Are smallholder farmers better or worse off from an increase in the international price of cereals?," Food Policy, Elsevier, vol. 79(C), pages 213-223.
    4. Dick Durevall & Roy Weide, 2017. "Importing High Food Prices by Exporting: Rice Prices in Lao PDR," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 164-181, February.
    5. Rudolf, Robert, 2019. "The impact of maize price shocks on household food security: Panel evidence from Tanzania," Food Policy, Elsevier, vol. 85(C), pages 40-54.
    6. Tschirley, David & Myers, Robert & Zavale, Helder, 2014. "MSU/FSG Study of the Impact of WFP Local and Regional Food Aid Procurement on Markets, Households, and Food Value Chains," Food Security International Development Working Papers 184835, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Yu Na Lee, 2021. "Does Aversion to Price Risk Drive Migration? Evidence from Rural Ethiopia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1268-1293, August.
    8. Krah, Kwabena, 2022. "Maize price variability, land use change, and forestloss: evidence from Ghana," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322247, Agricultural and Applied Economics Association.
    9. Durevall, Dick & van der Weide, Roy, 2014. "Importing High Food Prices by Exporting: Rice Prices in Lao PDR," Working Papers in Economics 607, University of Gothenburg, Department of Economics.
    10. Bellemare, Marc F. & Fajardo-Gonzalez, Johanna & Gitter, Seth R., 2018. "Foods and fads: The welfare impacts of rising quinoa prices in Peru," World Development, Elsevier, vol. 112(C), pages 163-179.
    11. Balié, Jean & Magrini, Emiliano & Morales Opazo, Cristian, 2016. "Cereal price shocks and volatility in Sub-Saharan Africa: What does really matter for farmers' welfare?," DARE Discussion Papers 1607, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    12. Amolegbe, Khadijat B. & Upton, Joanna & Bageant, Elizabeth & Blom, Sylvia, 2021. "Food price volatility and household food security: Evidence from Nigeria," Food Policy, Elsevier, vol. 102(C).
    13. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.
    14. Hanan G. Jacoby & Basab Dasgupta, 2014. "Household Exposure to Food Price Shocks in Rural Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(1-2), pages 83-100.
    15. Sami Bibi & Massa Coulibaly & John Cockburn & Luca Tiberti, 2009. "L'impact de la hausse des prix des produits alimentaires sur la pauvreté des enfants et les reponses politiques au Mali," Papers inwopa09/60, Innocenti Working Papers.
    16. Marc F. Bellemare & Yu Na Lee & David R. Just, 2020. "Producer Attitudes Toward Output Price Risk: Experimental Evidence from the Lab and from the Field," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 806-825, May.
    17. Khadija Anjum & Leonora Angeles, 2025. "Farm workers’ food security during food price hikes: a political economy of landless rice-wheat farm labourers in Pakistan’s Punjab," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 42(3), pages 1361-1378, September.
    18. Aggarwal, Shilpa & Francis, Eilin & Robinson, Jonathan, 2018. "Grain today, gain tomorrow: Evidence from a storage experiment with savings clubs in Kenya," Journal of Development Economics, Elsevier, vol. 134(C), pages 1-15.
    19. Pieters, Hannah & Swinnen, Johan, 2016. "Trading-off volatility and distortions? Food policy during price spikes," Food Policy, Elsevier, vol. 61(C), pages 27-39.
    20. Alexander M. Danzer & Robert Grundke, 2016. "Coerced Labor in the Cotton Sector: How Global Commodity Prices (Don't) Transmit to the Poor," CESifo Working Paper Series 5937, CESifo.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:maappb:344109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.mwapata.mw/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.