Cereal Market Dynamics: The Malian Experience from the 1990s to Present

December 2, 2012 - Author: Valerie Kelly, Abdoul Murekezi, Nathalie Me-nsope, Sonja Perakis, and David Mather

IDWP 128. Valerie Kelly, Abdoul Murekezi, Nathalie Me-nsope, Sonja Perakis, and David Mather. 2012. Cereal Market Dynamics: The Malian Experience from the 1990s to Present

EXECUTIVE SUMMARY:
This paper assesses the role that cereal markets have played in stimulating farm-level
productivity growth and marketing of staple foods, in responding to changing demand
patterns, in satisfying minimum food security needs, and in contributing to poverty
reduction in both urban areas (through reductions in food prices) and rural areas (through
increases in farm incomes). The paper uses a case study approach based on the Malian
experience. Mali presents a particularly good case study of cereal market development
because of (1) a unique approach to donor and government coordination during the early
stages of market liberalization, (2) the contrasting development paths of the irrigated rice and
the rainfed coarse grains subsectors, (3) Mali’s growing role in West Africa’s regional cereal
trade, and (4) on-going policy debates that are relevant to the entire region. These policy
debates include questions such as (1) how to balance consumer and producer interests via
trade, tax, and safety net policies, (2) how to shape land policies that encourage a mix of
family and commercial farms capable of meeting both national food production goals and
poverty reduction objectives, and (3) how to provide incentives that reduce rural poverty by
assisting resource poor farmers while also stimulating greater productivity among better-off
farmers.

Although focused on cereal markets, the paper does not ignore other drivers of development
such as the policy environment, technology, and agricultural infrastructure. A recurrent theme
throughout the paper is the link between farm-level productivity, agricultural markets, and
poverty reduction: what have been the contributions and what are the constraints to realizing
the full potential of agricultural productivity growth and market development to reduce both
urban and rural poverty?

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