A Dynamic Spatial Model of Agricultural Price Transmission: Evidence from the Niger Millet Market
In: IFPRI Discussion Paper 1536
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In: IFPRI Discussion Paper 1536
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Using household level data collected from cereal based farming systems of Senegal, we examined the prospects and challenges of the Senegalese equipment supply subsidy program. Because of the design of the program—being procured and supplied by the government—we argue that the effect of this program on adoption of improved farm equipment depends on the supply and price benefits as well as the relative importance of ownership to access farm equipment. To empirically support this argument, we assessed the benefits of the subsidy in creating markets and reducing prices and its effectiveness in motivating farmers to use modern farm equipment. Our analyses indeed revealed that though the number of farmers benefited from the subsidy is small, the program has significantly improved the adoption of farm equipment drawn by animals mainly due to its market creation benefit. This has been further confirmed by the qualitative response of farmers who appreciated the quality of the equipment being supplied by the program. However, the effect of subsidy on machinery use is insignificant as it doesn't provide support to those farmers who primary depend on rental services. The price advantage created by the subsidy program is not as such significant either. Farm equipment purchased from the program and the open market appear to have closely similar prices. ; IFPRI5; DCA ; AFR ; Non-PR
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In: IFPRI Discussion Paper 01405
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Groundnuts are the most common cash crop and the main source of income for farmers in Senegal. Previously marginal, groundnut exports surged between 2011 and 2013. This new dynamic motivated the Government of Senegal to introduce a tax on groundnut exports in 2017. Senegal is a price-taker in the international groundnut market. Thus, the ex-ante simulation of the export tax on groundnuts results in a decreasing surplus for groundnut producers, while the surpluses of groundnut processors, the Government, and consumers increase. However, the positive effect on consumers is reversed if the introduction of the export tax is associated with a public investment-led groundnut productivity increase. The tax appears to be biased in favor of the export-oriented groundnut oil industry. Although the groundnut productivity increase mitigates the producers' loss, it widens the benefit accruing to the groundnut processors. The induced increase of groundnut oil exports and the exchange rate effect exacerbate the producers' loss. The associated negative income effect exceeds the positive price effect, leading to a decline in consumers' surplus. Therefore, the introduction of an export tax does not necessarily increase consumers' surplus in a country with weak market power. The economic structure and the external trade features of the country are as relevant as the fiscal policy decisions associated with the implementation of the trade reform. ; Non-PR ; IFPRI1 ; PHND; SAR
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This chapter summarizes the findings from analyses conducted by AKADEMIYA2063 on local staple food market dynamics during the COVID-19 pandemic in Africa. With the outbreak of the highly contagious virus in Africa in March 2020, various measures were implemented by African governments to contain its spread. These measures included bans on public gatherings and markets; restrictions on movement within and between countries; closures of schools, restaurants, and hotels; and curfews. All these measures were likely to cause market disruptions and revenue losses for vulnerable groups by disrupting supply and demand of agricultural staples, either directly or indirectly. The objective of these analytical studies is therefore to generate evidence on how the various COVID-19 response measures have affected food supply and demand patterns in Africa, taking into account the locational characteristics (that is, whether an area is urban or rural, has a surplus or deficit of the commodity in question, and is in a coastal or landlocked country) and whether the commodity is perishable or nonperishable. Such evidence can then be used to inform efforts to anticipate and respond to food crises arising from infectious disease outbreaks and the measures implemented to limit their spread.
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This chapter summarizes the findings from analyses conducted by AKADEMIYA2063 on local staple food market dynamics during the COVID-19 pandemic in Africa. With the outbreak of the highly contagious virus in Africa in March 2020, various measures were implemented by African governments to contain its spread. These measures included bans on public gatherings and markets; restrictions on movement within and between countries; closures of schools, restaurants, and hotels; and curfews. All these measures were likely to cause market disruptions and revenue losses for vulnerable groups by disrupting supply and demand of agricultural staples, either directly or indirectly. The objective of these analytical studies is therefore to generate evidence on how the various COVID-19 response measures have affected food supply and demand patterns in Africa, taking into account the locational characteristics (that is, whether an area is urban or rural, has a surplus or deficit of the commodity in question, and is in a coastal or landlocked country) and whether the commodity is perishable or nonperishable. Such evidence can then be used to inform efforts to anticipate and respond to food crises arising from infectious disease outbreaks and the measures implemented to limit their spread. ; PR ; IFPRI4; 1 Fostering Climate-Resilient and Sustainable Food Supply; 2 Promoting Healthy Diets and Nutrition for all; Feed the Future Initiative; ReSAKSS ; AFR
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In: IFPRI Discussion Paper 1813
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