This study addresses allocative efficiency in pricing and improved marketing efficiency in two parastatal marketing institutions (NAMBOARD and LINTCO) and a corporate marketing company [ROP (1975) Ltd.]. In the longer run, these efficiencies can be sustained only by terminating and administering pricing systems and monopolistic market structures enjoyed by parastatals/cooperatives, by improved subsector planning and continuing macroeconomic reform, particularly exchange rates. In particular, to obtain more efficient resource allocation in agriculture and provide improved production incentives to farmers, a pricing methodology based on provincial parity prices is proposed. A set of theoretical provincial prices for maize self-sufficiency is derived to illustrate the costs/benefits of self-sufficiency. Marketing structure reform should focus on multi-channel marketing, implemented by private, cooperative and parastatal marketing institutions, and be phased with subsidy elimination. Government intervention in parastatal marketing organizations should be minimal. Roles for NAMBOARD in the foodgrain sector, LINTCO in the cotton subsector, and ROP in the oilseed subsector are proposed.
Details
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Document Date
1985/06/30
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Document Type
Pre-2003 Economic or Sector Report
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Report Number
5556
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2010/06/12
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Disclosure Status
Disclosed
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Doc Name
Zambia - Agricultural pricing and parastatal performance study
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Keywords
parity price;market institution;border price;import parity;producer price;vegetable oil;maize price;foreign exchange;consumer price;Strategy for Agriculture;efficiency of resource use;food self sufficiency;efficient allocation of resource;consumption;transport cost;regional price;returns to capital;Exchange Rates;import substitution;price methodology;competitive market structure;market efficiency;low income group;competitive market system;efficient resource allocation;export parity;Crop;
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Citation
Zambia - Agricultural pricing and parastatal performance study (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/578171468334175981/Zambia-Agricultural-pricing-and-parastatal-performance-study