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The Maize Farm-Market Price Spread in Kenya and Uganda

Author

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  • 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.

Suggested Citation

  • Takashi Yamano & Ayumi Arai, 2010. "The Maize Farm-Market Price Spread in Kenya and Uganda," GRIPS Discussion Papers 10-25, National Graduate Institute for Policy Studies.
    • Handle: RePEc:ngi:dpaper:10-25
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    References listed on IDEAS

    as
    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, May.
    2. Jayne, Thomas S. & Myers, Robert J. & Nyoro, James K., 2006. "The Effects of Government Maize Marketing Policies on Maize Market Prices in Kenya," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25555, International Association of Agricultural Economists.
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    Cited by:

    1. 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.
    2. 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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    More about this item

    Keywords

    Price Spread; Market; Maize; Kenya; Uganda;
    All these keywords.

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