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Price support measurement and food security

The State of Agricultural Commodity Markets 2015–16










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    MAFAP Methodological Guidelines - Volume I - Analysis of Price Incentives and Disincentives . 2013
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    The MAFAP project produces a set of indicators t hat measure the impact of policies and market performance on different commodities, countries and over time. One of the three pillars which MAFAP addresses is the measurement of the effect of policy and market performance on prices perceived by different agents in the value chain. This document provides a hands - on review of how to obtain information for the calculation of these indicators . It also explains what the indicators measure and how th ey relate to domestic policies, markets and value chain performance. Its target audience is that of practitioners in MAFAP’s partner countries that will need to calculate the indicators for specific agricultural commodities in their respective countries.
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    Book (series)
    Can budget support to the cotton sector be used more efficiently? An assessment of the policy support measures in Mali and Burkina Faso. 2015
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    In Burkina Faso and Mali, cotton is the most important cash crop, given its high contribution to the GDP and to the export sector revenue. Export of cotton lint accounted for 60 and 15 percent of the value of national exports, respectively, in 2014. To maintain the level of cotton production, the two Governments support the sector. Indeed, the analysis based on the Monitoring and Analysing Food and Agricultural Policies (MAFAP) methodology show that producers received incentives of 21 and 12 p ercent in Burkina Faso and Mali, respectively, between 2005 and 2012 (Nominal Rate of Protection-NRP). The analysis provides insights on the level of domestic price protection that compensates price distortions resulting from on one hand, exogenous causes namely the international price distortions and the exchange rate misalignment and on the other hand, endogenous inefficiencies such as the high transport or processing costs. Two adjusted NRP are computed, one using an adjusted benchmark price for cotton that is netted out of policy interventions at the international level (Anderson, 2006) and one using an alternate, non-misaligned exchange rate (BCEAO, 2013). The value chain inefficiencies are then discussed, using the Market Development Gap indicator which reveals that higher producer price could be obtained if inefficiencies were corrected through sound investment policies. Finally, a budgetary allocation analysis is proposed, along with the computation of Nominal Rates of Assist ance that reveal the full extent of policy support to the cotton value chain. Price intervention, with other cotton-related budgetary transfers, represented 9 percent of food and agricultural expenditure in Burkina Faso between 2006 and 2012 and 31 percent in Mali.
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    Book (stand-alone)
    Importance of sorghum in the Mali economy: the role of prices in economic growth, agricultural productivity and food security 2018
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    Mali has generated relatively high levels of agricultural growth over the past few decades. While most attention has focused success in cotton, since the early 1990s, staple food production has increased by an annual rate of 2.4 percent, roughly keeping pace with population growth. Most of the production, however, has been through area expansion, which increased at a faster annual pace, 2.0 percent, than the 0.5 percent increase in yields. Studies have found agricultural growth more effective in generating economic growth and reducing poverty than investments elsewhere, including the industrial sector. Mali shares many of the conditions favorable to successful agriculture led growth, including agriculture’s substantial contribution to GDP, a large smallholder population, and poverty concentrated in rural areas. This report investigated the role that sorghum production has played in economic development and poverty reduction in Mali, with a principal focus on how sorghum and similar commodity prices, as proxies to agricultural income, affect economic growth. Findings suggest that while sorghum and other staple food crops contribute to modest rates of economic growth, the lack of commercial marketing opportunities and “cheap food” pricing policy limit agriculture’s growth potential. The artificially low prices paid to Mali’s sorghum producers suppress farm income and constrain the long–term buildup of investment capital needed to adopt more modern and productive technology and management practices. Moreover, the low pricing has aggravated household’s ability to make any meaningful movement out of poverty. Policy needs to move away from pricing mechanisms that artificially maintain low food prices and increase crop research investments in staple food crops so that the large population of rural Malian household engaged in their production become engines of economic growth and bootstrap themselves from poverty.

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