Alternative Instruments for Ensuring Food Security and Price Stability in Zambia
Given heavy dependence on rainfed maize production, Zambia must routinely cope with pronounced production and consumption volatility in their primary food staple. Typical policy responses include increased food aid flows, government commercial imports and stock releases, and tight controls on private sector trade. This paper examines recent experience in Zambia, using a simple economic model to assess the likely impact of maize production shocks on the domestic maize price and on staple food consumption under alternative policy regimes. In addition to an array of public policy instruments, the analysis evaluates the quantitative impact of two key private sector responses in moderating food consumption volatility— private cross-border maize trade and consumer substitution of an alternate food staple (cassava) for maize. The analysis suggests that, given a favorable policy environment, private imports and increased cassava consumption together could fill roughly two-thirds of the maize consumption shortfall facing vulnerable households during drought years.
|Date of creation:||2007|
|Date of revision:|
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- Alderman, Harold & del Ninno, Carlo, 1999. "Poverty Issues for Zero Rating VAT in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(2), pages 182-208, July.
- Dorosh, Paul A. & Haggblade, Steven, 1997. "Shifting sands: The changing case for monetizing project food aid in Bangladesh," World Development, Elsevier, vol. 25(12), pages 2093-2104, December.
- Byerlee, Derek & Jayne, T.S. & Myers, Robert J., 2006. "Managing food price risks and instability in a liberalizing market environment: Overview and policy options," Food Policy, Elsevier, vol. 31(4), pages 275-287, August.
- Haggblade, Steven, 2006. "Maize Price Projections for Zambia's 2006/07 Marketing Season," Food Security Collaborative Policy Briefs 54619, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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