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Markets access  and the IFAD-IFPRI Partnership Nick Minot and  Maximo Torero 24 March 2008  IFAD, Rome
Objective of planning session:   Identify overlap between IFPRI expertise and IFAD needs IFAD needs IFPRI  expertise
Areas of marketing research at IFPRI ,[object Object],[object Object],[object Object],[object Object],[object Object],A B C  D
Research focus:  Market failure  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Inefficiency and high transaction costs Lack of market opportunities and poverty
Globalization and trade A ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Globalization and trade
Vision for domestic marketing B Larger overall number of smallholders with marketable surpluses – i.e. movement from net buyers to net sellers 1 Improved state of food security driven by productivity improvements (higher marketable yields) and crop income diversity  Small farmers able to participate in growing high-value market channels e.g. for supermarkets, processors, and exports Access to trading and marketing mechanisms including storage, credit, and transportation  Enabling policy and regulatory environments, including support for smallholders and trade openness 2 3 4 5
Example 1: Staple crop marketing in sub-Saharan Africa  (Gates Foundation) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1 2
Maize:  A Case Study  Assembly markets Complex Maize Marketing Channels – Benin Example   ,[object Object],[object Object],[object Object],Overview : ,[object Object],[object Object],[object Object],[object Object],[object Object],International flows Internal flows
Cassava:  An Overview ,[object Object],[object Object],100% 10% Marketing Patterns 1% ,[object Object],[object Object],[object Object],[object Object],Production and Usage in SSA ,[object Object],[object Object],[object Object],[object Object]
Example 2: High-value agricultural marketing in Indonesia  (ACIAR) Growth in supermarkets and processing  Higher quality standards and minimum volumes raise question whether smallholders will be excluded Commodity focus:  Shallots, chillies, mangoes, mangosteen, and shrimp Methods:  Farm surveys to understand role and constraints of smallholders, trader interviews to explore quality requirements, and consumer surveys to understand quality requirements and determinants of shift to supermarkets Expected outputs:  Improved understanding of 1) rate of shift toward supermarkets, 2) implications for smallholders, and 3) policies and institutions to maintain smallholder participation in high-value agriculture 1 2 3 4
Infrastructure and Institutions C ,[object Object],[object Object],[object Object],[object Object],[object Object]
On infrastructure and Institutions C ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bangladesh, 2000-2004 Source: Torero and Chowdhury, 2006 ,[object Object],Peru 2002 ,[object Object],Electricity 0% 10% 20% 30% 40% 50% 60% % change of PC HH Exp Elec + phone Elec + road Elec + road + phone -25 -20 -15 -10 -5 0 5 10 15 % change in time allocation Ag salaried Non-ag salaried Ag self-empl Non-ag self empl 1 infrastr 2 infrastr 3+ infrastr
Impact evaluation of rural electrification: Finding the causal link ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Random selection …
Food and Water Safety ,[object Object],[object Object],[object Object],[object Object],D
Cross-cutting methods (1):  New approaches to identifying recommendation domains ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cross-cutting methods (2):  IFPRI Mobile Experimental Economics Laboratory (IMEEL) Purpose Implementation of field experiments to understand behavior of the poor in rural and urban areas, especially in Africa, Central America and the Caribbean, Latin America and Southeast Asia. Benefits of experiments Experiments grant a high degree of control over the manner in which data are generated. They enable us to establish counterfactual scenarios that tend to be otherwise non-existent. Experiments are different from surveys in that they use simple games to observe actual decisions. Equipment 12 laptops, 30 PDAs, solar panels and batteries as back-up power sources What next? Projects * Highly Pathogenic Avian Influenza (HPAI): Pro-poor policy options for controlling HPAI * Contract Farming: Innovative contracts for linking farmers to markets and reducing poverty
Implications for IFAD-IFPRI Partnership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],IFAD needs IFPRI  expertise
Next steps ,[object Object],[object Object],[object Object]

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Ifad Ifpri Mtk Access

  • 1. Markets access and the IFAD-IFPRI Partnership Nick Minot and Maximo Torero 24 March 2008 IFAD, Rome
  • 2. Objective of planning session: Identify overlap between IFPRI expertise and IFAD needs IFAD needs IFPRI expertise
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. Vision for domestic marketing B Larger overall number of smallholders with marketable surpluses – i.e. movement from net buyers to net sellers 1 Improved state of food security driven by productivity improvements (higher marketable yields) and crop income diversity Small farmers able to participate in growing high-value market channels e.g. for supermarkets, processors, and exports Access to trading and marketing mechanisms including storage, credit, and transportation Enabling policy and regulatory environments, including support for smallholders and trade openness 2 3 4 5
  • 8.
  • 9.
  • 10.
  • 11. Example 2: High-value agricultural marketing in Indonesia (ACIAR) Growth in supermarkets and processing Higher quality standards and minimum volumes raise question whether smallholders will be excluded Commodity focus: Shallots, chillies, mangoes, mangosteen, and shrimp Methods: Farm surveys to understand role and constraints of smallholders, trader interviews to explore quality requirements, and consumer surveys to understand quality requirements and determinants of shift to supermarkets Expected outputs: Improved understanding of 1) rate of shift toward supermarkets, 2) implications for smallholders, and 3) policies and institutions to maintain smallholder participation in high-value agriculture 1 2 3 4
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. Cross-cutting methods (2): IFPRI Mobile Experimental Economics Laboratory (IMEEL) Purpose Implementation of field experiments to understand behavior of the poor in rural and urban areas, especially in Africa, Central America and the Caribbean, Latin America and Southeast Asia. Benefits of experiments Experiments grant a high degree of control over the manner in which data are generated. They enable us to establish counterfactual scenarios that tend to be otherwise non-existent. Experiments are different from surveys in that they use simple games to observe actual decisions. Equipment 12 laptops, 30 PDAs, solar panels and batteries as back-up power sources What next? Projects * Highly Pathogenic Avian Influenza (HPAI): Pro-poor policy options for controlling HPAI * Contract Farming: Innovative contracts for linking farmers to markets and reducing poverty
  • 19.
  • 20.