Department of Agricultural, Food, and Resource Economics Food Security Group

IDWP 50. T.S. Jayne, Milan Hajek and Johan van Zyl. 1995. 51 pp.An Analysis of Alternative Maize Marketing Policies in South Africa 

INTRODUCTION:
The maize-oriented agricultural economies throughout Southern Africa are in fundamental
transition. Increased recognition of the costs of historical controls on pricing and marketing
already has led to partial maize market liberalization in several countries in the region.
However, there is still intense debate over the appropriate scope and implementation of future
food market reform. Much of the debate derives from uncertainty over the consequences of
comprehensive and politically risky changes to domestic markets, especially at a time when
regional market conditions are also in flux due to agricultural restructuring in neighboring
countries. There is currently little information on the direction and magnitude of grain trade
between South Africa, Zimbabwe, and other countries in the region under a deregulated external
trading environment. There is also a lack of information on the regional consequences of
alternative domestic maize policy scenarios currently under deliberation in South Africa.