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2019 | OriginalPaper | Buchkapitel

12. Enhancing Productivity and Market Access for Key Staples in the EAC Region: An Economic Analysis of Biophysical and Market Potential

verfasst von : Siwa Msangi, Kennedy Were, Bernard Musana, Joseph Mudiope, Leonidas Dusengemungu, Lucas Tanui, Jean-Claude Muhutu, George Ayaga, Geophrey Kajiru, Birungi Korutaro

Erschienen in: Applied Methods for Agriculture and Natural Resource Management

Verlag: Springer International Publishing

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Abstract

In this chapter, we show how the current crop areas under three key staples—rice, maize, and beans—could be better aligned with the crop suitabilities that are inherent in the East African Community (EAC) region, through some key policy interventions. We take a multi-market model that was constructed for the 5 main countries in the EAC and use it to demonstrate how reducing transport costs, and increasing crop productivities can lead to market-level welfare improvements, as well as a closer alignment between the areas where the crops are cultivated, and the areas with the best agronomic suitability for those crops. At present, a significant proportion of those staples are grown in areas with limited growth potential, but opening up markets in combination with productivity-focused investments can allow countries to make better use of the crop potential they already have, and take advantage of regional market opportunities.

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Fußnoten
1
The East African Community consists of five key countries—Burundi, Kenya, Rwanda, Tanzania, and Uganda. South Sudan is now also an official part of the EAC; however, a lack of reliable data and links to research experts in that area has led to its omission from this study.
 
2
Like the Bill and Melinda Gates Foundation’s efforts to support the World Bank in adding details relevant to agricultural in their Living-Standards and Measurement Surveys (LSMS)—resulting in the LSMS-ISA (i.e., ‘Integrated Surveys on Agriculture’) project.
 
3
See the data products available at: https://​harvestchoice.​org/​.
 
4
Non-food demand also contains categories such as ‘seed use’ and ‘waste’ which are tracked in the FAO food balances, but which we do not have sufficient information for to model explicitly.
 
5
The GIS-based analysis of crop suitability is described in a separate technical document of Were et al. (2016).
 
6
In this function, the parameter \(c_{A}^{R,r}\) is a calibrating constant, and the ‘elasticity’ \(\gamma\) gives the response of area to a change in price.
 
7
In our implementation, we did not model trade between the sub-regions (r) of each country, as that would have imposed an enormous computational burden on the model, and require detailed data beyond what we possess. So, we only model trade at the national level, in this model.
 
8
In our formulation, we treat the ‘rest of the World’ as a homogeneous entity, knowing that it represents something different to each EAC country, in reality. For the inland, landlocked countries, for example, the rest of the World, would be the bordering Congo or the Sudan, whereas the coastal countries receive goods from the ‘rest of the World’ over ocean-based routes at Mombasa, Dar-es-Salaam, Tanga, Mtwara, or from neighboring, Ethiopia, Malawi, Zambia, or Mozambique. By simplifying the representation of RoW to one entity, we cannot (therefore) tie a particular landed price at a given point of entry or exit as the border price—but hypothesize a composite world price which we have to solve for in the calibration process.
 
9
The application of maximum entropy inference methods is explained in further detail in the Technical Annex (2).
 
10
Here, we interpret net trade as net exports (exports minus imports)—which means a positive quantity makes the country a net exporter and a net importer of the good if negative.
 
11
In this scenario, this yield increase is implemented for those crops falling into zones where less than 60% of the maximum potential is currently being realized.
 
12
The GIS-based analysis of crop suitability is described in separate technical documentation of the WaLETS project and has been led by Kennedy Were of KALRO and his colleagues. This can be accessed at: https://​www.​kilimotrust.​org/​documents/​reports/​2017/​walets/​WaLETS_​Final_​Reports/​WaLETS_​GIS_​TechnicalReport.​pdf.
 
13
In this function, the parameter \(c_{A}^{R,r}\) is a calibrating constant, and the ‘elasticity’ \(\gamma\) gives the response of area to a change in price.
 
14
The function does not have to be quadratic—but must be convex in curvature. We have chosen the quadratic form simply for analytical convenience (in implementation and exposition to the reader).
 
15
In cases where a good is ‘inferior’ to other preferred goods, the per-capita consumption could go down with income. An example could be the declining demand for coarse grains (millet/sorghum) as household income increases, in favor of rice- and wheat-based products.
 
16
The ‘no-arbitrage’ condition describes a competitive market equilibrium, where any opportunity for selling a good for a higher price than the original purchase price + transport cost is exhausted. So, at best, an agent can break even by selling a good for exactly the cost at which it was purchased plus the cost of delivering it to the destination, but no more. This assumption could be relaxed in a less competitive market environment—but that is beyond the scope of this study.
 
17
This describes the kind of ‘mixed complementarity’ formulation that is commonly applied to solve trade equilibrium problems and is found in other types of mathematical programming problems. In such a problem, one does not need to maximize or minimize an economic objective function, since these complementary relationships summarize the first-order necessary conditions required to solve the implicit optimization problem. See Paris (2010) for more details.
 
18
In our implementation, we did not model trade between the sub-regions (r) of each country, as that would have imposed an enormous computational burden on the model and require detailed data beyond what we possess. So, we only model trade at the national level, in this model.
 
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Metadaten
Titel
Enhancing Productivity and Market Access for Key Staples in the EAC Region: An Economic Analysis of Biophysical and Market Potential
verfasst von
Siwa Msangi
Kennedy Were
Bernard Musana
Joseph Mudiope
Leonidas Dusengemungu
Lucas Tanui
Jean-Claude Muhutu
George Ayaga
Geophrey Kajiru
Birungi Korutaro
Copyright-Jahr
2019
DOI
https://doi.org/10.1007/978-3-030-13487-7_12