Smallholder maize market participation and choice of marketing channel in the presence of liquidity constraints: Evidence from Zambia

DOWNLOAD

December 23, 2019 - Aakanksha Melkani, Nicole M. Mason, David L. Mather and Brian Chisanga

Aakanksha Melkani, Nicole M. Mason, David L. Mather and Brian Chisanga, 2019. Smallholder maize market participation and choice of marketing channel in the presence of liquidity constraints: Evidence from Zambia, FSP Policy Brief 108, East Lansing: Michigan State University.

Key Findings

  • Smallholders with liquidity constraints in maize production are 11% less likely to be a net seller of maize. One explanation for this is that liquidity constrained households are less able to adequately invest in productivity enhancing inputs, thus limiting limits their capacity to produce a marketable surplus.
  • While households without liquidity constraints (UC) have a statistically significant positive response to higher maize prices, liquidity-constrained (LC) households do not respond to changes in maize prices.
  • A 10% increase in maize production is correlated with a 4% increase in probability of being a net seller for UC households and 3% for LC households.
  • An additional expected moisture stress period during the growing season reduces the probability that a LC household is a net seller by 16%.
  • LC households are 18% less likely to sell to the FRA, and thereby are less likely to be able to enjoy the benefits of relatively high FRA maize purchase prices.

DOWNLOAD FILE

Authors

You Might Also Be Interested In

Accessibility Questions:

For questions about accessibility and/or if you need additional accommodations for a specific document, please send an email to ANR Communications & Marketing at anrcommunications@anr.msu.edu.

Tag List
  • agrifood system transformation,
  • c1-c2,
  • food security group,
  • fsg policy brief,
  • fsp policy brief,
  • innovation lab for food security policy,
  • input use and market development,
  • zambia
  • follow us on linkedin
Michigan State University
  • Spartans Will.
  • © Michigan State University

MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential.

Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Quentin Tyler, Director, MSU Extension, East Lansing, MI 48824. This information is for educational purposes only. Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned.

The 4-H Name and Emblem have special protections from Congress, protected by code 18 USC 707.

We comply with the Federal Trade Commission 1998 Children’s Online Privacy Protection Act (COPPA).