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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Consumer Response to Maize Market Liberalization in Urban Kenya
Authors:Jayne, Thomas S.ISNI
Argwings-Kodhek, GemISNI
Year:1997
Periodical:Food Policy
Volume:22
Issue:5
Period:October
Pages:447-458
Language:English
Geographic term:Kenya
Subjects:household budget
economic policy
marketing
maize
Agriculture, Natural Resources and the Environment
Economics and Trade
Urbanization and Migration
External link:https://doi.org/10.1016/S0306-9192(97)00034-1
Abstract:The elimination of consumer food subsidies associated with structural adjustment in Africa has been widely thought to exacerbate food insecurity for low-income consumers. This article determines how urban maize consumption and expenditure patterns have responded to the liberalization of the maize and maize meal markets in Kenya. The paper decomposes changes in maize meal prices attributable to changes in maize grain prices and maize milling margins. Results are obtained through two random household surveys in Nairobi, the first conducted before (1993) and the second after (1995) liberalization. The main finding of the study is that maize market liberalization has conferred substantial benefits to urban consumers. Results also indicate that the former consumer subsidies conferred through the official marketing channel were untargeted and actually inversely related to household income. The subsidies on sifted meal also served to entrench a noncompetitive market structure that inhibited the development of a lower-cost informal milling system. These findings are consistent with research results from other eastern and southern African countries showing that the negative effects of eliminating food subsidies in the State marketing system have been largely compensated by relaxing controls on private grain trade. Bibliogr., notes, ref., sum.
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