Description: Distance to Market and Search Costs in an African Maize Market

QR Code

Distance to Market and Search Costs in an African Maize Market

Farm-gate buying by small itinerant buyers is the dominant mode of primary marketing in Tanzania's maize market. This paper estimates the effect of household distance to market on maize farm-gate prices, and the extent to which seasonally dete...

Full description

Bibliographic Details
Main Author:	Mahdi, Shireen
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO INFORMATION ACCESS TO MARKETS AGRICULTURAL ECONOMICS AGRICULTURE BARRIERS TO ENTRY BASIC FOODS BASIC NEEDS BUSINESSES BUYER BUYERS CAR COMMERCIALIZATION COMPETITIVE PRICE COOKING COST OF TRANSPORT ECONOMIC DEVELOPMENT ECONOMIES OF SCALE ELECTRONIC MARKETPLACES FLOUR FOOD INSECURITY FOOD MARKETS FOOD POLICY FOOD PRODUCERS FOOD PRODUCTION FOOD SECURITY HOUSEHOLD FOOD INSECURITY INSTITUTION LICENSE LIMITED ACCESS LONGER DISTANCES MAIZE MARKET ASSESSMENT MARKET CONDITIONS MARKET INFORMATION MARKET LIBERALIZATION MARKET PLACES MARKET POWER MARKET PRICES MARKET REFORMS MARKET SEGMENT MARKET SHARE MARKET SHARES MARKETING MARKETPLACE MARKETPLACES MENUS MILLS MOBILE PHONE MONOPOLY MONOPOLY PRICES NETWORKS ONLINE SALES OPEN ACCESS PADDY PDF POPULATION GROWTH PRICE FLUCTUATION PRICE FLUCTUATIONS PRICE INFORMATION PRICE VARIATIONS PRIVATE SECTOR PROCUREMENT PRODUCER PRICES PRODUCT DESIGN PRODUCT MARKET PROFIT MARGIN PURCHASING RADIO RADIOS RAIL RESTAURANTS RESULT RESULTS RETAIL ROAD ROADS ROUTE RURAL INFRASTRUCTURE SALES SEARCH STANDARDIZATION STOCKS STORAGE CAPACITY STORAGE FACILITIES SUGAR SUPPLY CHAIN SURPLUS TELEPHONE TELEPHONES TRANSACTION TRANSIT TRANSPORT TRANSPORT CAPACITY TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION SERVICES VEHICLE WEB WFP WHOLESALERS WORLD FOOD PROGRAM
Online Access:	http://documents.worldbank.org/curated/en/2012/08/16611055/distance-market-search-costs-african-maize-market http://hdl.handle.net/10986/12016

Description
Summary:	Farm-gate buying by small itinerant buyers is the dominant mode of primary marketing in Tanzania's maize market. This paper estimates the effect of household distance to market on maize farm-gate prices, and the extent to which seasonally determined search costs can explain price variations between the lean and the harvest seasons using data from the most recent Tanzania Household Budget Survey (2007). The author observes that greater distance to market depresses farm-gate prices but that it is a relatively modest effect, and that this effect is pro-cyclical in that it is stronger during the harvest season when prices are lowest. The paper discusses the latter result with reference to search costs as an explanatory factor. It also briefly places the findings in the context of Tanzania's food security patterns, making a link between food insecurity and high search costs. The main policy conclusion is that coordinating mechanisms such as village market places (in parallel with farm-gate buying) may reduce transaction costs in rural markets.