Although the government supports cotton farmers by regulating prices, cotton producers in Mozambique receive prices that are lower than international reference prices. Findings from a recent study conducted by the Monitoring African Food and Agricultural Policies (MAFAP) project show that the following measures would improve prices for producers:
- fostering competition along the entire cotton value chain, especially among processing companies (ginners);
- making processing more efficient to increase both the quantity and quality of outputs;
- revising the domestic price fixing system to align producers’ prices with prices in international markets; and
- strengthening the market power of producers, relative to ginners, to improve transparency and equity in cotton market transactions.
Currently sugar cane farmers in the United Republic of Tanzania receive lower prices than they could, despite high domestic demand, because of high processing costs. Tariffs on imported sugar keeps prices high for consumers without boosting prices for farmers. A new policy approach based on liberalized trade and increased competitiveness of sugar processing could lead to higher prices for producers and lower prices for consumers.
Cattle farmers in Burkina Faso receive low prices and have few incentives to increase production and marketing. Cattle producers would receive higher prices if several specific measures, for example increasing export opportunities, were in place.
Rice farmers and traders in Uganda receive higher prices thanks to existing policies. However, rice consumers also pay higher prices since they do not receive subsidies designed to offset high producer prices. FAO/MAFAP analysis suggests that increasing rice production is the key to making rice more affordable for consumers while protecting producers.