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Between 2005 and 2010, cattle producers in Mali faced price disincentives. This was mainly due to inefficiencies in the country’s cattle value chain, which result in weak linkages between domestic and regional markets. Consequently, producers received lower prices than they could have received if market performance were improved through policies targeting the livestock sector. Support to livestock (cattle, sheep, and goats) is essential, as it is considered the country’s third largest export.

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Policy Briefs
Mali

Between 2005 and 2010, rice producers in Burkina Faso received higher prices than equivalent world prices, indicating that they faced price incentives. This trend is consistent with national policy objectives, which aim to boost rice production. However, price incentives were primarily due to a duopoly in the country’s export market, which led to higher domestic prices and a disconnect between domestic and international markets.

Policy Briefs
Burkina Faso

Regulated cotton prices in Burkina Faso have led to higher domestic prices and incentives to production. Although fixed prices, which are indexed to international cotton prices, ensure minimum prices to producers, the sustainability of this system is questionable due to its high cost and the large amount of international aid that it requires.

Policy Briefs
Burkina Faso

MAFAP analysis shows that rice producers in the United Republic of Tanzania received prices that were higher than international reference prices. These findings are consistent with the government’s policy of protecting farmers from imports which has helped foster an increase in rice production. Indeed, the URT has shifted from being a net importer to a net exporter of small quantities of rice to neighboring countries. However, high prices at the farm gate resulted in higher prices for consumers which could compromise food security.

Policy Briefs
Tanzania

Public expenditure on agriculture and rural development in Burkina Faso has not adequately targeted the main factors which depress producers’ prices of most key commodities: few and inadequate rural roads, a lack of transport capacity and poorly organized transport and marketing activities. These constraints lead to value chains which are poorly integrated into national, regional and international markets, and, in many cases, prevent producers from receiving higher prices. MAFAP analysis suggests that the following measures would make transport and marketing activities more efficient:

  • Increasing public expenditure on infrastructure. Special emphasis should be given to roads that link producers to markets and markets to each other.
  • Increasing agricultural expenditure aimed at improving marketing services for producers, as well as marketing infrastructure and storage facilities.
  • Expanding the government’s share of public expenditure on marketing, storage and transport infrastructure to ensure sustainability of public spending, the proportion of donor funding being particularly high.
Policy Briefs
Burkina Faso

Kenyan smallholder tea farmers generally received prices closer to those in international markets. This reflects the country’s liberalized market structure for tea and the lack of distortions resulting from domestic policies. The close alignment between domestic and international prices may also be due to the efficient organization of smallholders who process and market their tea under the Kenya Tea Development Agency Ltd. (KTDA). However, MAFAP analysis shows that tea prices were vulnerable to short-term shocks due to Kenya’s reliance on only a few key trade partners.

Policy Briefs
Kenya
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