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Input use and output price risks: the case of maize in Burkina Faso

Author

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  • Le Cotty, T.
  • Maître d'Hôtel, E.
  • Ndiaye, M.
  • Thoyer, S.

Abstract

We investigate whether the fluctuations of agricultural output prices may explain the low level of input use in Sub-Saharan Africa. We combine data on local maize prices and data on farmers’ fertilizer use over the 2009-2011 period in Burkina-Faso to estimate a panel-tobit model of fertilizer use. We separate the predictable and unpredictable components of maize price fluctuations and find that fertilizer use decreases when maize price fluctuations increase, and more specifically when unpredictable price fluctuations increase. ....French Abstract: Nous analysons si les fluctuations des prix des produits agricoles peuvent expliquer le faible niveau d’utilisation des intrants en Afrique Sub Saharienne. Nous combinons des données sur les prix locaux du maïs et des données sur l’utilisation des engrais chimiques sur la période 2009-2011 au Burkina-Faso pour estimer un modèle tobit en panel d’utilisation d’intrants. Nous distinguons les composants prévisibles et imprévisibles des fluctuations des prix du mais et établissons que l’utilisation d’intrants diminue quand les fluctuations des prix du maïs augmentent, et que cet effet est lié à la composante imprévisible des fluctuations des prix.

Suggested Citation

  • Le Cotty, T. & Maître d'Hôtel, E. & Ndiaye, M. & Thoyer, S., 2021. "Input use and output price risks: the case of maize in Burkina Faso," Working Papers MoISA 202102, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    • Handle: RePEc:umr:wpaper:202102
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    More about this item

    Keywords

    FERTILIZER USE; PRICE RISK; MAIZE; INTENSIFICATION; SUB-SAHARAN AFRICA; UTILISATION D'INTRANTS; RISQUES DE PRIX; MAIS; INTENSIFICATION; AFRIQUE SUB SAHARIENNE;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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