Who Gained and Who Lost from Zambia’s 2010 Maize Marketing Policies?

Chewe Nkonde, Nicole M. Mason, Nicholas J. Sitko, and T. S. Jayne

Zambia?s record-breaking maize harvest of nearly 2.8 million metric tons (MT) in 2010 is a major achievement and a testimony to what input subsidies, output price incentives, and favorable weather can do to elicit a major supply response. However, the policies adopted by the Zambian government (GRZ) to handle the 2010 maize bumper crop have produced both winners and losers. This paper examines the key features of the 2010/11 GRZ maize marketing policies and their likely income distributional effects on various stakeholder groups: large-scale farmers, three categories of smallholder households (net sellers of maize, net buyers of maize, and those that neither buy nor sell maize), urban consumers, millers, traders, and government. We then propose a set of alternative policies GRZ could use to manage future maize bumper crops and explore the likely distributional effects of these policies on the various stakeholder groups.

File: http://fsg.afre.msu.edu/zambia/wp49.pdf