| dc.description.abstract | The main objective of government intervention in the
maize industry is to ensure self sufficiency in maize
production. However, indicators of the government's
inability to meet this objective have been observed in the
past. The memories of national maize crises of 1961, 1971,
1979 and 1984 are sti II fresh in Kenyans' minds. Moreover,
Kenya is currently (1992) facing a shortfall in domestic
maize supply forcing it to import the commodity which is
the dominant staple food of its people. These setbacks have
made the government to embark on a liberalization programme
of this vital industry. Liberalization of the maize
industry involves reduction in government control of maize
marketing, thereby increasing the activities of private
maize traders.
This study analyzed the efficiency of p r Lv a t e t ma i z e
trade ill Nandi District. Nandi District has a high
potential for maize production and remarkable activities
of private
framework
maize traders. A Policy Analysis Matrix (PAM)
was used in the study. The deviation from
efficiency is given by the difference between the profits
prevailing in the control led maize market and the profits
that would emerge on liberalization of the market.
This study found that in the period between July 1990
and March 1991, the prevailing profits in private maize
trade ranged between Ksh. 2.70 and Ksh. 77.85 per bag10f
maize. If the maize market w a s liberal ized the private
traders would have made profits of between Ksh 232.00 and
1 1 Bag = 90 kg.
Ksh. 284.10 per bag. This excess profit would in the
longrun be passed to maize farmers in form of higher
producer prices. Thus, governement policy reduced returns
to participants in private maize trade by between 264 and
2203 percent.
The study concluded that private traders can handle
maize marketing efficiently. The role of the government in
maize trade should be provision of infrastructure like
roads and storage facilities, which would enhance technical
efficiency and reduce losses in private maize trade. The
government
traders in
should offer
order to
credit facilities to private maize
assist them to cover purchasing,
marketing and storage costs. If the government is to set
maize prices, then the ceiling consumer price should
reflect or approach the cif price in periods when
importation is necessary. The floor producer price should
reflect the price likely to achieve the food security
objective being pursued by the government. If NCPB is to
engage in maize trade, then it should be allowed to compete
with other traders. | en |
