An assessment of the effects of diversification policy in Zambia
Date
2012
Authors
Phiri, Emmanuel
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zambia
Abstract
Diversification of farming is very useful investment to mitigate risk, an engine for ensuring
food security and assured sustainable incomes to farmers. This present study was conceived
to assess the efficiency of maize and sorghum production, hence shedding light on the
efficiency of crop diversification policy in Zambia. Two competitive crops (maize and
sorghum) are selected to assess the efficiency of production using a modified policy analysis
matrix (PAM) approach. The findings suggest that Zambian trade and domestic policies
aimed at achieving both food security and crop diversification through high procurement
price and heavy subsidization of inputs in maize production have induced major
inefficiencies in crop diversification.
The study revealed through three key policy analysis indicators that sorghum production is
efficient (DRC= 0.03) comparable to maize production (DRC= 0.87). Maize private price is
10.8 percent above social price (NPC= 1.08), and sorghum private price is 6.1 percent below
social price. Also, maize producers enjoy heavy subsidy of 10.3 percent (EPC= 1.03) for their
value added whereas sorghum producers face a net tax of around 6.1 percent (EPC= 0.61) for
their value added. This indicates positive incentives for maize producers which is a cost on
national budget given that domestic resource utilization is inefficient (DRC= 0.87) as
compared to sorghum production (DRC= 0.03)
In that regard, it is recommended that diversified farming should be implemented through
Private-Public Partnerships to reduce on costs that impede sorghum production growth.
Description
Student Project Report
Keywords
Crop diversification--Zambia