Edward Mabaya

Spatial Price Adjustment with and Without Trade

In this paper we introduce a switching error correction model (SECM) estimator that allows for the possibility that price transmission between markets might vary during periods with and without physical trade flows. Applying this new approach to semi-weekly data on tomato markets in Zimbabwe, we find that intermarket price adjustment occurs quickly and as much when there is no trade as when product flows from one market to another. This finding underscores the importance of information flow for market performance.

Attribute preferences and willingness to pay for fortified cereal foods in Botswana.

Abstract Studies conducted in the early 1990s by the Ministry of Health in Botswana among children and women of childbearing age revealed widespread malnutrition problems in that country. Fortification of food is viewed as a means of overcoming some of the problems associated with poor nutrition. This study analyses the market for fortified cereal foods in Botswana. The specific objectives of the study are to: (1) determine the importance of various product attributes of cereal products in influencing the purchasing decision of consumers in Botswana, (2) assess the willingness of consumers in Botswana to pay for fortified cereal foods, and (3) develop recommendations to guide private strategy and public policy for fortification in Botswana. The study is based on primary data collected from 452 consumers in Gaborone and the south-east administrative districts using a clustered sampling approach. Results show that, for consumers, the most important attributes, listed in order of importance, were product brand, product quality, price, colour/appearance and nutritional value. Consumers knew little about fortified foods. There is a close correlation between residential area and knowledge about fortified foods, with rural residents having the least knowledge. Willingness to pay for fortified milled products was very low among consumers owing to limited knowledge about fortification and its benefits. The segment-target-position (STP) framework is used to develop strategic recommendations for a market-led fortification programme.

Factors influencing adoption of genetically modified crops in Africa

The debate around genetically modified (GM) crops in Africa continues to grow especially among policy-makers, food manufacturers, farmer organisation and consumer advocacy groups and the general public. While other regions have taken a firm position on biotech crops, Africa remains largely ambivalent, with wide variation in GM policy across countries. The central objective of this paper is to analyse the factors that influence the adoption of GM crops in Africa. First we evaluate the current status of GM crop adoption in Africa. Second we identify the key enablers and hindrances to adoption of GM crops. The main factors include ministerial control of biosafety, peer country influence, stage of seed sector development, advocacy by key political figures, the media, activism, food security and technical capacity. We posit that, for most African countries, GM policy is guided by political rather than technological considerations with media and special interest groups playing a key role. Despite the numerous impediments, slow progress is being made in preparing the requisite enabling environment for biotechnology adoption in Africa.

Case studies of emerging farmers and agribusinesses in South Africa

CITATION: Mabaya, E., Tihanyi, K., Karaan, M. & Van Rooyen, J.(eds.). Case Studies of Emerging Farmers and Agribusinesses in South Africa. Stellenbosch: AFRICAN SUNMeDIA. doi:10.18820/9781920338664.

Innovative Institutions, Public Policies and Private Strategies for Agro-Enterprise Development

In an effort to promote agro-enterprises and agro-industries as viable forms of inclusive development, the Food and Agriculture Organization of the United Nations (FAO) and The Cornell International Institute for Food, Agriculture and Development (CIIFAD) in collaboration with the International Association of Agricultural Economists (IAAE), organized an international symposium on the topic “Innovative Institutions, Public Policies, and Private Strategies for Inclusive Agro-Enterprise Development”, as part of the Triennial Meetings of the IAAE held in Foz do lguacu, Brazil, in August 2012. This book contains the major papers presented at the symposium, which feature a wide range of country and regional experiences and examine the influence of markets and technology transfer to agro-enterprises on food security, poverty, and economic growth. The contributions also identify alternative market access strategies for sustainable economic development. This volume will enrich existing knowledge of agro-enterprises as a channel for promoting inclusive growth and reducing poverty levels across developing and emerging markets. Contents: Preface About the Editors About the Contributors Acknowledgements Introduction Institutional Innovations Linking Small-Scale Farmers to Produce Markets in South Africa (Joyce M Chitja and Edward Mabaya) Innovative Business Models in the Thai Horticultural Sector: A Panel Data Analysis of the Impacts of GlobalGAP Certification (Sarah Holzapfel and Meike Wollni) Innovative Networks in Conservation Agriculture: Bajio Hub Case Study, Mexico (Gabriela Monsalvo-Velazquez, Ricardo Romero-Perezgrovas, Bram Govaerts and Roberto Rendon-Medel) Geography Matters: Evidence and Implications of Spatial Selection in Contract Farming Schemes in Southern India (Sudha Narayanan) Capabilities and Performance in Collective Marketing: The Importance of Learning to Cope with Agency Dillemas (Giel Ton, Lithzy Flores, Ruben Monasterios and Evaristo Yana) Social Innovation, Entrepreneurship and New Green Jobs: Successful Experiences in Mexico (Artemisa Montes Sylvan) Sweet Sorghum: A Smart Crop to Meet the Demands for Food, Fodder, Fuel and Feed (G Basavaraj, P Parthasarathy Rao, C Ravinder Reddy, A Ashok Kumar, S Datta Mazumdar, Y Ramana Reddy, P Srinivasa Rao, S M Karuppan Chetty and Belum V S Reddy) Promoting Food Processing Through Food Parks and Food Processing Special Economic Zones: The Indian Experience (Aradhna Aggarwal) Autonomy, Competence and Market Structure: Self-Determination Theory Applied to Small Agricultural Exporters from Latin America (Linda M Young and Theresa C Bushman) Promoting Agro-Enterprises in the Highlands of Ethiopia Through Improved Institutional Support Services: Experiences of Market-Oriented Dairy and Fattening Development (Berhanu Gebremedhin, Dirk Hoekstra and Azage Tegegne) The Role of Government in Ensuring a Level Playing Field: The Case of South Africas Competition Commission and the Maize Milling Industry (Lulama Ndibongo Traub) The Quiet Revolution in Agri-Food Value Chains in Asia: Understanding the Fast Emergence of Cold Storages in Poor Districts in India (Bart Minten, Thomas Reardon, K M Singh and Rajib Sutradhar) Readership: Students of development studies, agribusiness practitioners, agricultural economists, food policymakers, and practitioners interested in finding out more about agribusiness and agri-industries across developing and emerging markets.

Adoption of genetically modified crops in South Africa: Effects on wholesale maize prices

ABSTRACT The ability of genetically modified (GM) crops to increase yields and reduce use of pesticides is well established. Based on food security needs and the central role of agriculture, Africa may stand to benefit from green biotechnology given the low agricultural productivity and the looming food crises in most urban areas. However, the adoption of GM crops in Africa has been slow and limited to a handful of countries. The primary objective of this paper is to evaluate the impact of GM maize adoption in South Africa by looking at wholesale spot prices. We apply a threshold autoregressive model to time series data on the price of maize and GM adoption rates in South Africa to address the following questions: (1) Does the adoption of GM maize excite the growth rate of price of maize in South Africa; (2) Does the error variance of the maize price growth rate exhibit regime-switching behaviour to impact the volatility? The results show evidence that the adoption of GM maize influences the dynamics of the maize price growth rate in South Africa. Further, there is strong evidence that the error variance exhibits regime-switching behaviour with the posterior mean for the error variance in the first regime about twice as large as that of the second regime.

Markets for marama beans in southern Africa: Linking sustainable products with sustainable livelihoods

Indigenous natural food plants are critical to rural livelihoods, especially in arid and semi-arid regions where they contribute significantly to food security and social and economic welfare. The sustainability of these plants is therefore of paramount importance. This paper analyses the market conditions for marama bean (Tylosema esculentum) products, taking into account economic, social and cultural conditions. Information on local livelihoods was gathered through focus groups and in-depth interviews with key informants in Botswana, South Africa and Namibia. The market analysis for marama products was conducted using an STP (segment, target, position) framework, and willingness to pay for prototype products was evaluated using the contingent valuation method to analyse structured questionnaires directed at retail outlets. The study found that assuring the sustainability of local peoples livelihoods while creating a larger market is only achievable through community organisations supported by a broad marketing strategy and using cultivated marama.