Analysis of intra-region market integration and spatial price transmission in groundnut markets in Malawi

Chitete, Moses; Mgomezulu, Wisdom Richard; Bwanaisa, Mercy; Dzanja, Joseph

doi:10.1080/03031853.2021.1937246

Cited by 6 publications

(3 citation statements)

References 15 publications

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“…Market information on bean prices from other markets was one of the barriers that increased transaction costs. The study further agrees with the findings of Chitete et al (2021), who established that lack of market information on prices and quantities of groundnuts led to weak integration of the groundnuts markets in Malawi. In this study, it was observed that most traders had access to market information on prices and where to purchase beans for sale, though the source was an unreliable one.…”

Section: Discussionsupporting

confidence: 91%

Structure, conduct, and performance of beans marketing in Malawi: A case study of Lilongwe District

Chitete

Mgomezulu²,

Phiri

et al. 2023

J. Agribus. Rural Dev.

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Poorly performing markets are one of the major limitations to achieving high farm income and ultimately poverty reduction in sub-Saharan Africa. Using the structure, conduct, and performance approach applied to bean markets in Malawi, we bring to light the status and performance of the smallholder marketing system. Multiple methods were employed in this study: the Herfindahl-Hirschman Index to evaluate the market structure; adopted pricing strategies and affiliation with large companies or associations to assess conduct; and marketing margins to measure market performance. Our results show that 39 percent of markets are imperfectly competitive. Also, the lack of reliable markets, purchase prices, access to credit, operating capital, and transaction costs were major factors that undermined the potential for bean traders to operate at a higher scale. The commonly adopted pricing mechanisms include cost-plus pricing, dynamic pricing, and quality-dependent pricing. Very few bean traders (7%) are affiliated with large trading companies and associations. Seven bean marketing channels were observed. We recommend that policies favoring improvements in rural road networks and market infrastructure should be encouraged to reduce transaction costs. In order to eliminate barriers to increasing quantities of beans handled by traders, the government should provide soft loans with low interest rates to traders. Deliberate actions to promote the affiliation of small traders with larger companies and associations involved in bean trading should be promoted.

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Section: Discussionsupporting

confidence: 91%

Structure, conduct, and performance of beans marketing in Malawi: A case study of Lilongwe District

Chitete

Mgomezulu²,

Phiri

et al. 2023

J. Agribus. Rural Dev.

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“…However, mini-grid technologies are not the recognised option within the rural electrification plans and activities, and they have not been able to access finances from the funding [37]. Because it is managed within the civil service, the REF has been hindered by transparency and accountability issues and many cases of corruption and diversion of funds [45,46]. The hope for public funding is contained in the energy policy of the Malawi Government [47], which recognised the following need: "To improve the management governance for Rural Electrification and Renewable Energy.…”

Section: Institutional Frameworkmentioning

confidence: 99%

The Quest for Resilient Sustainable Development and Low-Carbon Energy Transitions: Investigating the Challenges and Success Factors for Mini-Grids in Malawi

Mwale,

Blanchard,

Ngonda

et al. 2024

Sustainability

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Renewable energy mini-grids are considered a cost-effective way to provide electricity for a large proportion of the population in developing countries who do not have access to it. Compared with standalone home systems and national grid systems, mini-grids can potentially offer a better service. They can be deployed faster, making them essential for sustainable development, especially in rural and semi-urban areas of developing countries. However, mini-grids often face challenges regarding their resilience, and many fail to survive beyond their pilot phases. This paper aims to identify the factors contributing to the success of mini-grids and to identify common themes that can help existing and future mini-grid developments become more resilient and influence policy decision making. To achieve this goal, we developed a database of the status of mini-grids in Malawi, with the energy generation resource(s) of their installed capacity, enabling factors, and challenges. We undertook a more detailed investigation of two hydro mini-grid systems—Bondo and Chipopoma. We collected qualitative and quantitative data through literature reviews, site visits, interviews, and observations. The study identified 19 mini-grids with a combined installed capacity of 26 MW. Of these, seven had been abandoned, and one was under development. Several factors that affect successful mini-grid efficacy in Malawi were identified, including financial resourcefulness, technical resourcefulness, policies and regulations, community engagement and capacity building, cross-sector linkages, and institutional organisational frameworks. These factors need to be integrated into decision making by all stakeholders to ensure the enhancement of resilience and the sustainable development of mini-grids.

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“…The country has in recent years made tremendous efforts in ensuring the linkage between agricultural production and marketing of agricultural products. These efforts stem from market liberalisation, development of rural markets, enhancement of market information systems and the establishment of agricultural commodity exchange markets (Chitete et al, 2021). Nonetheless, agricultural commodities in Malawi still face inefficient marketing systems, and in some instances, missing markets persist, mostly in remote areas (GoM, 2016).…”

Section: Introductionmentioning

confidence: 99%

Are common bean traders efficient? An empirical evidence from Malawi

et al. 2023

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Efficient agricultural markets can be a bedrock for diverse economy-wide benefits ranging from improvements in resource use to price stabilisation. However, as is the case with most developing and agrarian countries, Malawi's agricultural markets are still developing. This is mainly the case in the country's legume markets, especially the bean marketing system. The current study assessed the market efficiency of common bean traders in Malawi using a multiple linear regression model. By focusing on the bean traders in the major markets in Malawi, the study departs from earlier research on bean marketing, which has placed greater emphasis on the farmer. The findings reveal that traders in bean markets mostly use informal sources of market information. Again, transaction costs such as transportation, storage, handling and distance to sources of bean reduce marketing efficiency. The scale of the operation portrayed a positive influence on marketing efficiency. Access to credit significantly increased marketing efficiency for both wholesalers and retailers. In addition, markets that are located in rural areas had a negative effect on marketing efficiency as compared to markets in urban areas, further agreeing with the focus of the National Agriculture Policy (NAP) to introduce structured markets in rural areas. The study recommends adjustments in policies in the NAP that would promote smooth access to reliable market information, especially in rural areas. The upgrading of the rural road system and warehousing facilities should be promoted in order to lower transaction costs. This will enable bean traders to expand their operations on a larger scale while also lowering expenses and increasing profits.

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Analysis of intra-region market integration and spatial price transmission in groundnut markets in Malawi

Cited by 6 publications

References 15 publications

Structure, conduct, and performance of beans marketing in Malawi: A case study of Lilongwe District

Structure, conduct, and performance of beans marketing in Malawi: A case study of Lilongwe District

The Quest for Resilient Sustainable Development and Low-Carbon Energy Transitions: Investigating the Challenges and Success Factors for Mini-Grids in Malawi

Are common bean traders efficient? An empirical evidence from Malawi

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