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Policies and price incentives for the rice sector in eight MAFAP pilot countries. Scope of the analysis. 8 countries: Burkina Faso, Ghana, Kenya, Mali, Mozambique, Nigeria, Tanzania, Uganda Rice price incentives measured at two levels of the value chain: farmers and wholesalers/traders
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Policies and price incentives for the rice sector in eight MAFAP pilot countries
Scope of the analysis • 8 countries: Burkina Faso, Ghana, Kenya, Mali, Mozambique, Nigeria, Tanzania, Uganda • Rice price incentives measured at two levels of the value chain: farmers and wholesalers/traders • Period of analysis 2005-2010
Outline • Commodity context • Policy decisions and measures affecting the rice sector in the eight pilot countries • Results of the price incentives analysis • Key findings • Recommendations
Average paddy rice production and production per capita in MAFAP countries (2005-10, million MT) Source: FAOSTAT, Food Balance Sheets
Average human consumption of rice in MAFAP countries, 2005-2009 Source: FAOSTAT, Food Balance Sheets
Trends in production, area and yields (2005-2010) Source: FAOSTAT, MAFAP calculations
Observed against expected NRPs WHOLESALE FARM GATE
KEY FINDINGS • strong price incentives at the wholesale level in all countries due to high tariffs and high market access costs between the border and wholesale markets • consumers commonly pay higher prices (despite policy objectives in favor of consumers) • farmers receive lower prices than those expected in free, competitive markets with no policy interference
Key findings • Market access costs affecting farm prices are similar for a wide range of policy frameworks (fees and compliance costs at road check points, ports and markets, disadvantage of small scale farmers in price negotiation); • Even when import tariffs are in place, these are less effective for farmers than they should be due to imperfect price transmission
Way forward • Expand agricultural sector analysis in Africa from traditional policy focus towards the functioning of commodity value chains • Design interventions aimed at minimizing access costs to increase price transmission to farmers, while reducing prices for consumers • How to bridge the gap?
Farm gate and wholesale prices for local rice in Ghana (GhÇ/100Kg)