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Primary agricultural cooperatives in Malawi: Structure, conduct, and performance
No full textPrimary agricultural cooperatives in Malawi, in contrast to other farmer-level organizations, have legal status and can own assets, borrow money for their operations, and sign contracts, making it easier for them to do business for the profit of their members. Conceptually, such cooperatives enable their member-farmers to achieve economies of scale for their commercial activities. By joining together in a cooperative, members can obtain commercial inputs at lower prices closer to wholesale prices than if they purchased the inputs as individuals. In selling their output, by aggregating their crops and other products into larger lots that the cooperative then negotiates to sell on their behalf, buyers can achieve greater efficiency in buying from them and can be expected to offer a premium over the prices that they would offer farmers selling those products individually. Cooperatives can also serve farmers in providing an important channel for obtaining information and advice to increase their productivity and the profitability of their farming. Moreover, by joining together to achieve common objectives in primary agricultural cooperatives, member-farmers can exercise greater influence on local and national policy issues of concern to them, while also building social cohesion, solidarity, and trust within their communities.Non-PRIFPRI1; MaSSP; 4 Transforming Agricultural and Rural Economies;Development Strategies and Governance (DSG); Transformation Strategie
Papua New Guinea food price bulletin: April 2023
No full textDownload time series food price data, and build graphs and tables for over 20 different food crops at our food price database webpage: https://www.ifpri.org/project/freshfood-price-analysis-papua-newguinea. In the first quarter of 2023, the average price of sweet potatoes (except in Port Moresby) and taro declined by 14 and 17 percent, respectively, in all markets. Rice prices remained stable in all markets during the 1st quarter of 2023, however long-term (2021 real) rice price (1 kilo bag) has increased 13% between the 2nd quarter of 2021 and the 1st quarter of 2023. Leafy vegetables (aibika, choko-tips, English cabbage, pakchoi) prices increased 31 percent (in nominal terms) in Kokopo between January and March. However, average green leafy vegetable prices in Port Moresby decreased by 19 percent, except for Aibika. In Mt Hagen, choko-tips and pakchoi prices were up by 27 percent from January, while aibika and English cabbage decreased by 11 percent between January and March.Non-PRIFPRI1; 4 Transforming Agricultural and Rural Economies; Capacity Strengthening; Fresh Food Price Analysis in Papua New Guinea; DCADevelopment Strategies and Governance (DSG); Transformation Strategie
Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria
No full textThis paper combines panel data from nationally representative household-level surveys in Nigeria with long-term satellite-based spatial data on temperature and precipitation using geo-referenced information related to households. It aims to quantify the impacts of climate change on agricultural productivity, income shares, crop mix, and input use decisions. We measure climate change in harmful degree days, growing degree days, and changes in precipitation using long-term (30 year) changes in temperature and precipitation anomalies during the crop calendars. We find that, controlling for other factors, a 15 percent (one standard deviation) increase in change in harmful degree days leads to a decrease in agricultural productivity of 5.22 percent on average. Similarly, precipitation change has resulted in a significant and negative impact on agricultural productivity. Our results further show that the change in harmful degree days decreases the income share from crops and nonfarm self-employment, while it increases the income share from livestock and wage employment. Examining possible transmission channels for this effect, we find that farmers change their crop mix and input use to respond to climate changes, for instance reducing fertilizer use and seed purchases as a response to increases in extreme heat. Based on our findings, we suggest policy interventions that incentivize adoption of climate-resilient agriculture, such as small-scale irrigation and livelihood diversification. We also propose targeted pro-poor interventions, such as low-cost financing options for improving smallholders’ access to climate-proof agricultural inputs and technologies, and policy measures to reduce the inequality of access to livelihood capital such as land and other productive assets.Non-PRIFPRI1; 1 Fostering Climate-Resilient and Sustainable Food Supply; Feed the Future Nigeria Agricultural Policy Project; Feed the Future Initiative; NSSPDevelopment Strategies and Governance (DSG); Transformation Strategie
Community-led resource mobilization and early warning systems process assessment: Full report
No full textThis report examines the motivation and willingness of Village Civil Protection Committees (VCPCs) and communities to mobilize resources at community level for Disaster Risk Management (DRM). To do this, a participatory action research (PAR) approach was utilized, facilitated by SWOT analyses, in combination with focus group discussions (FGDs) and key informant interviews (KIIs). The findings revealed that communities had prepositioned resources to prepare for disaster response as part of risk reduction. Participants identified their ability to mobilize themselves as a community; to mobilize funds and food; well trained and knowledgeable structures, good agricultural practices, and good governance as major strengths. Opportunities for resource mobilization included enterprise, piece work (ganyu), irrigation farming, access to safety net programs, and youth participation. Weaknesses included the disorganization of some community structures, lack of support or political will from community leaders and the government, lack of accountability from VCPC members, and reluctance to adopt improved agricultural practices. Community-based early warning systems, although available, are insufficient to provide effective risk reduction for natural disasters. There is a lack of documentation concerning indigenous early warning systems, which impedes the development of effective and contextual strategies for risk reduction. The recommendations include increasing awareness among traditional leaders, defining resource mobilization structures, documenting guidelines and transactions for transparency, investing in early warning infrastructure and capacity building, documenting indigenous early warning signs, and intensifying watershed restoration and conservation to increase disaster preparedness.Non-PRIFPRI1; 1 Fostering Climate-Resilient and Sustainable Food Supply; 4 Transforming Agricultural and Rural Economies; 5 Strengthening Institutions and Governance; TitukulaneDevelopment Strategies and Governance (DSG); Transformation Strategie
Assessing tight global wheat stocks and their role in price volatility
No full textThe Russia-Ukraine war has caused significant price volatility in agricultural markets over the past year — for wheat, in particular, price levels and price volatility reached the highest levels since the 2007/08 marketing year. Both have fallen back to pre-war levels over the past six months, but volatility remains high relative to historical levels (Figure 1), indicating that significant market uncertainty remains, creating ongoing vulnerability for global food security.
Before 2022, volatility (measured by the implied volatility in the wheat futures market) spiked and remained high three times since 2006 — in 2007/08 and then again in 2010/11 and 2012/13 (as indicated in the gray bands in the figure). Markets then remained relatively quiet until the recent spike following Russia’s invasion of Ukraine in February 2022. High volatility persists due to market uncertainty over the war and the relative tightness in stock levels, which provide little cushion against unforeseen production shortfalls.Non-PRIFPRI4; Food Security PortalMarkets, Trade, and Institutions (MTI); Food and Nutrition Polic
The Russia-Ukraine war after a year: Impacts on fertilizer production, prices, and trade flows
No full textRussia’s 2022 invasion of Ukraine triggered global disruptions in markets for key food crops and fertilizers, threatening food security worldwide. With the war now entering its second year, high international food prices have moderated, though domestic price levels remain high in many low- and middle-income countries. Here, we turn to global fertilizer markets, examining how they weathered the past year, and the likely impacts going forward for agricultural production and food security.Non-PRIFPRI4; Food Security PortalMarkets, Trade, and Institutions (MTI); Food and Nutrition Policy; CP
Constraints facing rural poultry production in PNG: The role of input suppliers
No full textContext: The average consumption of protein foods in Papua New Guinea (PNG) remains insufficient to meet nutritious diet guidelines, especially in rural areas. While an expanding literature has demonstrated that poultry is a cost-efficient animal source food to increase protein intake, rural households in PNG face high prices at the market for poultry meat. Similarly, the high price of poultry production inputs constrains greater uptake of rural poultry production. PNG’s heavy reliance on feed (and feed input) imports, as well as high transportation costs and insufficient rural manufacturing and processing infrastructure creates limited opportunities for rural subsistence and commercial poultry production growth.
Objective: There is a lack of value chain studies to understand the feasibility of expanding the local mini livestock feed mill model in PNG to increase poultry feed supply in underserved areas. This study builds from earlier work on rural livestock feed infrastructure programs, and aims to fill the knowledge gap on the opportunities and constraints for expanding domestic livestock feed production and distribution via rural mini feed mills.
Method: The International Food Policy Research Institute (IFPRI) and the National Agriculture Research Institute (NARI) conducted in-depth qualitative interviews with 8 mini mills and 13 poultry farmers across 4 highland provinces during October and November 2022. We synthesize the interview transcriptions of the qualitative interviews in tandem with quantitative analysis of food consumption and agri-food trade data, as well as the authors’ own field observations in this paper.
Results: The in-depth interviews showed that the poultry farmers who purchased from local mini feed mills substantially lowered their feed costs, resulting in greater gross profits compared to rural poultry farmers that only sourced feed from commercial feed suppliers. However, the mini feed mills that we interviewed outlined a series of challenges in sustaining rural feed mills in PNG. The main challenges of running a successful mill included feed mill equipment procurement, electricity reliability, reliable raw ingredient supply, mini mill retailing to secure a client base, and adequate information about feed formulation. We identified two potential approaches that have overcome many of the identified challenges, that could be replicated and adapted to expand mini feed mill operations in the Highlands. The first approach is a farmer cooperative model that incorporates credit and feed delivery services to cooperative farmers. In doing so, they are able to better estimate volume demand for processed feed and accommodate feed production accordingly. The second approach follows a lead firm model, whereby a local farm supply retail outlet is expanding its business to include livestock feed production and supply, overcoming equipment procurement constraints given their previously developed business model focused on farm implement supply. Our evaluation provides detailed costs and benefits of both approaches for potential expansion of these livestock feed producer and distributor models.Non-PRIFPRI1; DCA; 1 Fostering Climate-Resilient and Sustainable Food Supply; 2 Promoting Healthy Diets and Nutrition for all; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry; Papua New Guinea Food Policy StrengtheningForesight and Policy Modeling (FPM); Transformation Strategies; Development Strategies and Governance (DSG
Can agricultural exports from Southern Cone countries make up for global supply disruptions arising from the Russia-Ukraine war?
No full textThe economies of the Southern Cone (Argentina, Brazil, Chile, Paraguay, and Uruguay), major agricultural exporters still recovering from the negative impacts of the COVID-19 pandemic, have benefited from the rise in international prices accompanying the Russian invasion of Ukraine. With the war disrupting global supplies, the net exporting countries of the region have the opportunity to increase their exports. If these countries, especially Mercosur members, can boost production enough to offset the loss of Ukraine exports, it would go a long way toward stabilizing markets and world food security.
However, like the rest of the world, these countries are operating in the difficult current environment of global economic slowdown, rising energy and fertilizer prices, and rising inflation. In this post, we examine responses of Southern Cone countries to the disruptions in agricultural markets caused by the war, and their prospects going forward.Non-PRIFPRI4; Food Security PortalMarkets, Trade, and Institutions (MTI); Food and Nutrition Polic
Regional war, global consequences: Mounting damages to Ukraine’s agriculture and growing challenges for global food security
No full textRussia’s all-out war on Ukraine has inflicted devastating impacts that continue to mount more than a year after the invasion. As of September 2022, even before Russia’s winter bombing campaign, the total damage to Ukraine’s infrastructure was an estimated US$127 billion, equal to 64% of the country’s 2021 GDP. More than 14 million Ukrainians have left their homes, including more than 8 million refugees.
These impacts have global economic effects as well — particularly on agricultural markets and food security. Damage to Ukrainian agriculture and production losses also continue to mount. This has created severe economic uncertainty, driving many Ukrainian farmers to the brink of bankruptcy and substantially depressing agricultural output — contributing to high prices and price volatility around the world. In this post, we outline the war’s impacts on Ukrainian production and exports of key crops and their continuing global reverberations.Non-PRIFPRI4; Food Security PortalMarkets, Trade, and Institutions (MTI); Food and Nutrition Polic
Leveraging urbanization for inclusive development in Malawi: Anchoring the secondary city development of Salima and Chipoka in a modernizing fruit value chain
No full textAgricultural development in Malawi faces an important conundrum. While agriculture is the backbone of the economy, many smallholders will not be able to farm their way out of poverty. Shrinking farmland size severely limits the total income that can be earned from farming, even at much higher levels of productivity per area farmed than are now achieved. Urbanization embedded in the modernization of locally relevant value chains provides a promising pathway to inclusive development as it serves to simultaneously raise farm incomes, create income-earning opportunities off the farm, and create specialized urban hubs that can boost urban economic growth through agglomeration economies. After laying out these concepts conceptually, we apply them to a specific example of a modernizing mango value chain in Salima/Chipoka. Salima and Chipoka form an urban cluster about 100 km from the capital Lilongwe, located on the lakeshore of Lake Malawi. The Malawi Secondary Cities Plan has identified this cluster as one of eight that are to form an interconnected network of secondary cities, geographically spread across the country, with productive activities in each anchored in the economy of their rural hinterlandsNon-PRIFPRI1; 4 Transforming Agricultural and Rural Economies; MaSSPDevelopment Strategies and Governance (DSG); Transformation Strategie