The effect of the National Food Reserve Agency on maize market prices in Tanzania
Tanzania's National Food Reserve Agency has a mandate to ensure food security through procuring, reserving and recycling grain (primarily maize) in a cost‐effective manner. This mandate excludes a price stabilization role. Procurement prices, based on production costs, are often set above market pri...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Wiley
2018
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/145884 |
| _version_ | 1855535142139854848 |
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| author | Pierre, Guillaume Pauw, Karl Magrini, Emiliano |
| author_browse | Magrini, Emiliano Pauw, Karl Pierre, Guillaume |
| author_facet | Pierre, Guillaume Pauw, Karl Magrini, Emiliano |
| author_sort | Pierre, Guillaume |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Tanzania's National Food Reserve Agency has a mandate to ensure food security through procuring, reserving and recycling grain (primarily maize) in a cost‐effective manner. This mandate excludes a price stabilization role. Procurement prices, based on production costs, are often set above market prices to encourage production. Several disbursements channels exist: grain provided free or at a discount to targeted vulnerable households; subsidized sales to millers; and sales to prisons or nongovernmental aid programs, typically at market‐related prices. Given the perception that these activities are distortive, we use time‐series econometrics to model maize price dynamics in select wholesale markets to capture the Agency's market impact. We find that its pricing strategy had an insignificant impact on prices during 2010/11–2014/15 despite a fairly significant presence in at least some regional markets. We recommend that the Agency reconsiders offering a price premium on procured maize or selling maize at discount to millers, as limited market spill‐over effects imply the benefits are captured by only a few, even though its practice of providing subsidized or free maize to vulnerable people is not in question. Furthermore, current storage capacity expansion plans are not required and inconsistent with its food security mandate. |
| format | Journal Article |
| id | CGSpace145884 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1458842025-02-27T17:07:19Z The effect of the National Food Reserve Agency on maize market prices in Tanzania Pierre, Guillaume Pauw, Karl Magrini, Emiliano market prices food policies agricultural policies social protection maize econometrics food security Tanzania's National Food Reserve Agency has a mandate to ensure food security through procuring, reserving and recycling grain (primarily maize) in a cost‐effective manner. This mandate excludes a price stabilization role. Procurement prices, based on production costs, are often set above market prices to encourage production. Several disbursements channels exist: grain provided free or at a discount to targeted vulnerable households; subsidized sales to millers; and sales to prisons or nongovernmental aid programs, typically at market‐related prices. Given the perception that these activities are distortive, we use time‐series econometrics to model maize price dynamics in select wholesale markets to capture the Agency's market impact. We find that its pricing strategy had an insignificant impact on prices during 2010/11–2014/15 despite a fairly significant presence in at least some regional markets. We recommend that the Agency reconsiders offering a price premium on procured maize or selling maize at discount to millers, as limited market spill‐over effects imply the benefits are captured by only a few, even though its practice of providing subsidized or free maize to vulnerable people is not in question. Furthermore, current storage capacity expansion plans are not required and inconsistent with its food security mandate. 2018-03-01 2024-06-21T09:05:16Z 2024-06-21T09:05:16Z Journal Article https://hdl.handle.net/10568/145884 en Limited Access Wiley Pierre, Guillaume; Pauw, Karl; and Magrini, Emiliano. The effect of the National Food Reserve Agency on maize market prices in Tanzania. Review of Development Economics. 22(2): 540-557. https://doi.org/10.1111/rode.12374 |
| spellingShingle | market prices food policies agricultural policies social protection maize econometrics food security Pierre, Guillaume Pauw, Karl Magrini, Emiliano The effect of the National Food Reserve Agency on maize market prices in Tanzania |
| title | The effect of the National Food Reserve Agency on maize market prices in Tanzania |
| title_full | The effect of the National Food Reserve Agency on maize market prices in Tanzania |
| title_fullStr | The effect of the National Food Reserve Agency on maize market prices in Tanzania |
| title_full_unstemmed | The effect of the National Food Reserve Agency on maize market prices in Tanzania |
| title_short | The effect of the National Food Reserve Agency on maize market prices in Tanzania |
| title_sort | effect of the national food reserve agency on maize market prices in tanzania |
| topic | market prices food policies agricultural policies social protection maize econometrics food security |
| url | https://hdl.handle.net/10568/145884 |
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