Agricultural Commodity Exchanges and the Development of Grain Markets and Trade in Africa PDF Download

Author: Thomas S. Jayne
Publisher:
ISBN:
Category : Commodity exchanges
Languages : en
Pages : 30

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Author: Baulch, Bob
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 39

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This study examines the landscape in which Malawi’s two agricultural commodity exchanges (Comex) and warehouse receipts systems (WRS) operate and makes recommendations on how to improve their performance and benefits to key stakeholders. A mixed methods approach was adopted, involving semi-structured interviews with key market participants, compilation and analysis of secondary data from Malawi and other African Comex, and a review of existing literature. A review of international experience indicates that historically Comex often develop hand-in-hand with warehouse receipt systems (WRS), which help stimulate demand from off takers for standardized contracts while providing financing that increased volumes traded. In recent years, electronic trading platforms have given an impetus to the consolidation of existing Comex, and the development of regional networks of exchanges and warehousing arrangements. Nonetheless, a common reason why Comex fail is that they do no attract sufficient trading volumes to pay for their operating costs. This is often associated with default on contracts and fears of the market for commodities being cornered by a few larger traders. Of the 23 Comex in Africa, over half are still in their planning or inception stages and, with the notable exception of the agricultural futures and options traded on the Johannesburg Stock Exchange, most of the remaining Comex are thinly traded and receive financial support from government and/or donors.

Author:
Publisher: CTA
ISBN:
Category : Business & Economics
Languages : en
Pages : 36

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One of the issues to emerge at CTA’s value chains conference, ‘Making the Connection’, held last November, was the importance of devoting greater efforts to promoting national and regional markets in ACP countries. Governments, development partners and even the private sector have been overly focussed on selling to developed country export markets, which are highlycompetitive and restrictive. Six of the world’s ten fastest growing economies over the last decade are in Africa and, as wealth has increased, food import bills have been skyrocketing. If farmers are to benefit from opportunities presented by the growing food demand from urban populations, marketing channels between rural areas and cities must be significantly improved.

Author: Thomas Lines
Publisher: IIED
ISBN: 1843695731
Category : Developing countries
Languages : en
Pages : 270

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Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
ISBN: 9251339147
Category : Business & Economics
Languages : en
Pages : 80

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The African agricultural and food market is expanding quickly as indicated by World Bank projections that show that the value of Africa’s agriculture and agribusiness industry is expected to more than triple to reach USD 1 trillion by 2030, compared to 2010 (World Bank, 2013). This provides an opportunity to not only boost trade in food and non-food agricultural commodities and services within the continent but also enhance food security in Africa. Regional integration is also gaining momentum as evidenced by progress in the creation of customs unions and the initial steps in setting up a common external tariff at the regional level in a number of regional economic communities (RECs) such as the East African Community (EAC) and the Economic Community of West African States (ECOWAS). The establishment of the African Continental Free Trade Area (AfCFTA) further reinforces the gains achieved in regional integration and opens new market opportunities for farmers and other economic operators.It has been shown that the export of higher value-added products made in Africa is greater in regional markets than in external markets outside Africa, which are typically dominated by raw material exports. However, more than a decade after the adoption of the Comprehensive Africa Agriculture Development Programme (CAADP) in Maputo in 2003 by the New Partnership for Africa’s Development (NEPAD) in response to the stagnation of African agriculture, Africa continues to remain a marginal player, accounting for only 2.7 percent of world trade in goods and 5 percent of world agricultural trade (Bouët and Odjo, 2019).These figures are likely to trend downwards significantly in the near term due to the economic shock caused by the onset of the COVID-19 pandemic in 2020. The continent currently depends to a significant degree on extra-African sources for imports of food and agricultural products. The share of intra-African agricultural trade has been consistently below 20 percent in recent decades (Bouët and Odjo, 2019; AGRA, 2019). Comparable figures for intraregional agricultural trade are higher for Asia and Europe (more than 60 percent).

Author: Ochieng, Dennis O.
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 4

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Structured markets are organized platforms where economic agents such as farmers, traders, processors and financial institutions enter transparent and legal trading and financial arrangements (East Africa Grain Council 2013). Structured markets are important for the stabilization of volumes and prices of agricultural commodities (Hernandez et al. 2017) and diversification of foreign exchange earnings (Edelman et al. 2014). If supported by export mandates, structured markets for cereals and legumes could also limit informal cross-border trade and increase agricultural exports (Government of Malawi 2016). They could potentially also provide better statistics on volumes traded to aid in the planning, production, and marketing of crops in Malawi (Baulch and Gondwe 2017).

Author: Alexander Sarris
Publisher: Edward Elgar Publishing
ISBN: 1781008027
Category : Business & Economics
Languages : en
Pages : 456

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This book argues that the viability of many observed market and non-market interventions in agricultural products worldwide depends considerably on the underlying behaviour of the relevant commodity markets. Many of these policies have had distortive impacts, resulting in much discussion and controversy in the context of the World Trade Organization (WTO) Doha Round of trade negotiations.

Author: Kherallah, Mylene
Publisher: Intl Food Policy Res Inst
ISBN: 0801871980
Category : Business & Economics
Languages : en
Pages : 224

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Book Description
The long-term reduction of hunger and poverty in Sub-Saharan Africa remains one of the great challenges for the international development community. Eliminating hunger and promoting widespread growth in the region inevitably involves agriculture, given its central role in the region’s economies. Over the past 20 years, most African governments have carried out reforms to deregulate agricultural markets and reduce the role of state enterprises. How much has the state actually withdrawn from agricultural markets? Have well-functioning private markets emerged? How successful were these reforms in boosting agricultural production, economic growth, and the incomes of the rural poor? What lessons can we learn from the reform process? The authors of this book address these questions through an analysis based on an extensive review of experiences with reform, focusing on three major agricultural markets: fertilizer, food crops, and export crops. They examine the historical rationales for intervention, the factors contributing to reform, the process of implementation, and the impact of the reforms on farmers and consumers in Sub-Saharan Africa. The authors find that reforms have had many favorable results, but that the impact has been muted by partial implementation and structural constraints. They propose a new agenda for promoting the development of agricultural markets in Sub-Saharan Africa, identifying areas where governments can play a supportive role. They argue that appropriate agricultural marketing policies and investments can improve livelihoods and the economic health of the region.

Author: Xinshen Diao
Publisher: Intl Food Policy Res Inst
ISBN: 0896291634
Category : Social Science
Languages : en
Pages : 94

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Book Description
How can East and Southern African nations reduce poverty and hunger through agricultural growth? How can they create sufficient market demand to power such growth? This report proposes answers to these questions, applying a general equilibrium framework to the experiences of Madagascar, Malawi, Mozambique, Tanzania, Uganda, Zambia, and Zimbabwe. The authors conclude that, for countries like these, promoting traditional agricultural exports, developing nontraditional exports, and increasing food staple growth will probably not be sufficient to generate a significant level of economic growth. Instead, the model simulations suggest that reductions in marketing costs through improved infrastructure and development of market institutions, along with significant growth in the nonagricultural economy (besides that generated by agricultural growth linkages) are necessary conditions for rapid economic growth. This report's findings are a valuable first step toward understanding how East and Southern African nations can achieve economywide growth and poverty reduction.

Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
ISBN: 9251089310
Category : Social Science
Languages : en
Pages : 89

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Book Description
Global trade in agricultural and food products has grown rapidly in recent decades, with countries becoming more engaged in this trade, whether as exporters or importers. This trend is expected to continue over the coming decades. As a consequence, trade will play an increasingly important role in influencing the extent and nature of food security across all regions of the globe. The challenge has therefore become one of ensuring that the expansion of agricultural trade works for, and not against, the elimination of hunger, food insecurity and malnutrition. This edition of The State of Agricultural Commodity Markets aims to reduce the current polarization of views on the impacts of agricultural trade on food security and on the manner in which agricultural trade should be governed to ensure that increased trade openness is beneficial to all countries. By providing evidence and clarity on a range of topics, the report seeks to contribute to a more informed debate on policy choices and to identify required improvements in the policy processes within which these choices are made.