Cynthia Donovan

Food aid and food markets: lessons from Mozambique

Abstract A consensus has emerged on food aid policy, acknowledging the importance of short-run relief considerations, while emphasizing that such policy must be driven by a long-run, developmental perspective. This requires explicit attention to the effects of food aid on food markets. Yet it has long been clear that short- and long-run objectives of food aid may conflict. This tension stands in high relief in Mozambique, one of the most food aid-dependent countries in the world. This paper examines the factors determining the effects of yellow maize food aid on markets for yellow maize and white maize (the staple crop) in Mozambique. The paper finds that: (a) food aid has helped fuel the growth of a competitive small scale milling industry and informal marketing system; (b) yellow and white maize are substitutes in consumption; and (c) continued availability of yellow maize food aid at prices well below import parity will depress incentives for producers and traders to invest in the white maize production and marketing system. This paper presents recommendations for reforming the monetized food aid program and coordinating it more effectively with emergency aid.

Cassava commercialization in Southeastern Africa.

Purpose - Cassava production surged noticeably in Southeastern Africa beginning in the 1990s. The purpose of this paper is to examine the commercial responses and food security consequences of cassava production growth in the region. Design/methodology/approach - The paper incorporates a mix of quantitative analysis, based primarily on original analysis of national farm household survey data, together with key informant interviews with value chain participants in the three neighboring countries of Malawi, Mozambique and Zambia. Findings - In the cassava production zones, cassavas high productivity translates into per kilogram carbohydrate costs 60 per cent to 70 per cent of the cost of cereals such as maize and wheat, thereby opening up a range of profitable opportunities for commercialization of cassava-based foods, feeds and industrial products. Despite this potential, cassava commercialization in Southeastern Africa remains in its formative stages, with only 10 per cent to 30 per cent of production currently marketed. Unlike West Africa, where cassava commercialization has centered on marketing prepared cassava-based convenience foods, the emerging cassava markets in Southeastern Africa have centered on fresh cassava, low value-added cassava flour, and experiments in industrial processing of cassava-based starches, biofuels and feeds. Strategic investment in a set of key public goods (breeding, training in food sciences and food safety, and research on in-ground cassava storage) can help to shape this transition in ways that benefit both commercial interests and the food security of vulnerable households. Originality/value - The paper compares cassava commercialization across differing agro-climatic zones, policy environments and food staple zones.

Illness, death, and macronutrients: adequacy of rural Mozambican household production of macronutrients in the face of HIV/AIDS.

Background As the public sector and civil society develop intervention programs to deal with the HIV/ AIDS epidemic, there has been an increasing emphasis on the relationship between nutrition and the disease. Drug interventions may be ineffective, and the progression from HIV infection to full-blown AIDS may be accelerated without adequate nutrition. Mozambique is still fighting an increasing prevalence rate of HIV, including in rural areas. Rural households in Mozambique rely heavily on their own agricultural production for the basic macronutrients. Objectives To evaluate the extent to which household agricultural production of basic staples meets overall household needs for major macronutrients, comparing households affected and not directly affected by HIV/ AIDS and other major illnesses over two time periods. Methods This research analyzes nationally representative panel data from rural household surveys conducted in 2002 and 2005 to evaluate whether households that have suffered the chronic illness or illness-related death of prime-age adult members (15 to 49 years of age) are more vulnerable to macronutrient gaps. Results Households in the South and in the North with a male illness or death in 2002 produced significantly less macronutrients from crops in 2005 than nonaffected households. These households also had significantly lower income per adult equivalent. Conclusions Mortality or illness from HIV/AIDS affects the ability of agricultural households dependent on own-food production to produce macronutrients. Interventions to improve access to food may be needed for affected households, particularly in light of their inability to recover over time. More analysis is needed to understand income sources, crop diversification, and access to macronutrients through the market.

Are Staple Foods Becoming More Expensive For Urban Consumers In Eastern And Southern Africa? Trends in Food Prices, Marketing Margins, and Wage Rates in Kenya, Malawi, Mozambique, and Zambia

The world food and financial crises threaten to undermine the real incomes of urban consumers in eastern and southern Africa. This study investigates patterns in staple food prices, wage rates, and marketing margins for urban consumers in Kenya, Malawi, Mozambique, and Zambia between 1993 and 2009. There is high correlation among wage rate series for various government and private sector categories. We find that average formal sector wages rose at a faster rate than retail maize meal and bread prices in urban Kenya and Zambia between the mid-1990s and 2007. Although the 2007/8 food price crisis partially reversed this trend, the quantities of staple foods affordable per daily wage in urban Kenya and Zambia during the 2008/9 marketing season were still roughly double their levels of the mid1990s. The national minimum wage in Mozambique also grew more rapidly than rice and wheat flour prices in Maputo from the mid-1990s through the 2004/5 and 2006/7 marketing seasons, respectively. During the 2008/9 marketing season, Maputo minimum wage earners’ rice and wheat flour purchasing power was still higher than in the mid-1990s and roughly similar to levels at the millennium. These findings obtain for formal sector wage earners in Kenya and Zambia and minimum wage earners in Mozambique only. The majority of the urban labor force in these countries is employed in the informal sector; therefore, the general conclusion of improved food purchasing power over the past 15 years may not hold for a significant portion of urban workers. Maize marketing margins trended downward between 1994 and 2004 in urban Kenya, Malawi, and Zambia, while wheat marketing margins declined only in Zambia. For the public sector, important strategies for keeping food prices at tolerable levels include strengthening and improving crop forecasting and the food balance sheet approach for estimating need for imports, facilitating imports in a timely manner when needed, and ensuring the continued availability of low-cost staple food options for urban consumers through small-scale processing and marketing channels.