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Effects of Market Reform on Access to Food by Low-Income Households: Evidence from Four Countries in Eastern and Southern Africa
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Effects of Market Reform on Access to Food by Low-Income Households: Evidence from Four Countries in Eastern and Southern Africa

Author

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  • Jayne, Thomas S.
  • Rubey, Lawrence
  • Tschirley, David L.
  • Mukumbu, Mulinge
  • Chisvo, Munhamo
  • Santos, Ana Paula
  • Weber, Michael T.
  • Diskin, Patrick K.

Abstract

This report analyzes the effects of grain market reform and food subsidy elimination in Eastern and Southern Africa on access to food for low-income consumers. The report also assesses the potential to use "self-targeted commodities" to improve vulnerable groups access to food though market development strategies and food aid programs. While much research has been devoted to understanding how producers and traders would respond to reform of staple food markets, relatively little is known about the potential or actual responses by consumers. The report presents recent findings from six household-level surveys in urban areas of Zimbabwe, Kenya, Zambia, and Mozambique between 1991 and 1994. Secondary data from South Africa and Malawi are also presented where available. The report highlights seven conclusions: (1) Consumers subsidies on refined maize meal in Kenya, Zambia, Zimbabwe, Mozambique, and South Africa have not necessarily promoted food security, because they have entrenched a relatively high-cost marketing system and impeded the development of lower-cost channels from developing. (2) The conventional wisdom of rigid urban preferences for refined maize meal was greatly exaggerated by policy restrictions under the controlled marketing systems and subsidies on refined maize meal. (3) Since the removal of refined meal subsidies and controls on maize movement, retail prices of hammer-milled whole meal have ranged from 55% to 80% those of refined meal manufactured by large-scale millers. (4) In all countries surveyed, there is an inverse relationship between whole meal consumption and household income, and a positive relationship between refined meal consumption and household income. (5) New investment in hammer milling has increased rapidly since market reform. (6) Small-scale mills have a higher labor-to-investment cost ratio and labor-to-output ratio than large-scale milling. (7) Yellow maize, which is typically available at a price discount relative to white maize, also appears to be a "self-targeted" food.

Suggested Citation

  • Jayne, Thomas S. & Rubey, Lawrence & Tschirley, David L. & Mukumbu, Mulinge & Chisvo, Munhamo & Santos, Ana Paula & Weber, Michael T. & Diskin, Patrick K., 1995. "Effects of Market Reform on Access to Food by Low-Income Households: Evidence from Four Countries in Eastern and Southern Africa," Food Security International Development Papers 54052, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:mididp:54052
    DOI: 10.22004/ag.econ.54052
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    Cited by:

    1. Neil McCulloch & Bob Baulch & Milasoa Cherel-Robson, 2000. "Poverty, Inequality and Growth in Zambia during the 1990s," Econometrics 0004004, University Library of Munich, Germany.
    2. SIMA, Technical Team, 1996. "Mozambique's Food Security Success Story," Food Security Collaborative Policy Briefs 55195, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Jayne, Thomas S. & Mukumbu, Mulinge & Duncan, John & Staatz, John M. & Howard, Julie A. & Lundberg, Mattias K.A. & Aldridge, Kim & Nakaponda, Bethel & Ferris, John N. & Keita, Francis & Sanankoua, Abd, 1995. "Trends in Real Food Prices in Six Sub-Saharan African Countries," Food Security International Development Policy Syntheses 11327, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Jayne, Thomas S. & Rubey, Lawrence & Chisvo, Munhamo & Weber, Michael T., 1996. "Zimbabwe Food Security Success Story: Maize Market Reforms Improve Access to Food Even While Government Eliminates Food Subsidies," Food Security International Development Policy Syntheses 11326, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. 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.
    6. Nyoro, James K. & Kiiru, M.W. & Jayne, Thom S., 1999. "Evolution of Kenya's Maize Marketing Systems in the Post-Liberalization Era," Working Papers 202679, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    7. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    8. SIMA, Technical Team, 1996. "Relato do Sucesso da Segurança Alimentar em Mocambique," Food Security Collaborative Policy Briefs 55196, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Tschirley, David L. & Weber, Michael T., 1996. "Mozambique Food Security Success Story," Food Security International Development Policy Syntheses 11278, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Abu, Orefi & Kirsten, Johann F., 2009. "The South African Maize Milling Industry: Can Small and Medium-scale Maize Milling Enterprise Survive and Thrive?," 2009 Conference, August 16-22, 2009, Beijing, China 51304, International Association of Agricultural Economists.
    11. Tschirley, David L. & Weber, Michael T., 1996. "Relato de Sucesso da Seguranca Alimentar em Mocambique," Food Security International Development Policy Syntheses 11431, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Poulton, Colin & Dorward, Andrew & Jowett, A. & Peacock, C. & Urey, Ian, 2004. "Priorities and Preconditions for Successful Investment in Smallholder Agriculture in Sub-Saharan Africa," 2004 Inaugural Symposium, December 6-8, 2004, Nairobi, Kenya 9516, African Association of Agricultural Economists (AAAE).
    13. Govereh, Jones & Haggblade, Steven & Nielson, Hunter & Tschirley, David L., 2008. "Maize Market Sheds in Eastern and Southern Africa. Report 1," Food Security Collaborative Working Papers 55374, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    14. Smale, Melinda & Jayne, T.S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
    15. Gabre-Madhin, Eleni Z. & Haggblade, Steven, 2003. "Successes in African agriculture," MSSD discussion papers 53, International Food Policy Research Institute (IFPRI).
    16. Takamasa Akiyama & John Baffes & Donald Larson & Panos Varangis, 2001. "Commodity Market Reforms : Lessons of Two Decades," World Bank Publications - Books, The World Bank Group, number 13852.

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    Keywords

    Food Security and Poverty; Marketing;

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