IDEAS home Printed from https://ideas.repec.org/p/ags/iaae12/126231.html
   My bibliography  Save this paper

Seed market liberalization, hybrid maize adoption, and impacts on smallholder farmers in Tanzania

Author

Listed:
  • Kathage, Jonas
  • Qaim, Matin
  • Kassie, Menale
  • Shiferaw, Bekele A.

Abstract

Since the early 1990s, liberalization of the seed market in Tanzania has attracted several foreign companies that now market maize hybrids in the country. In this article, we analyze the impacts of proprietary hybrids on maize yields, production, and household living standards. We build on a recent survey of smallholder maize farmers in two zones of Tanzania. Hybrid adoption rates are 48% and 13% in the North and East, respectively. Average net yield gains of hybrids are 50-60%, and there are also significant profit effects. Geographical disaggregation reveals that the benefits have mostly occurred in the North, which also explains higher adoption there. In the North, hybrid adoption caused a 17% increase in household living standards. We conclude that proprietary hybrids can be suitable for semi-subsistence farms and that seed market liberalization has generated positive socioeconomic developments.

Suggested Citation

  • Kathage, Jonas & Qaim, Matin & Kassie, Menale & Shiferaw, Bekele A., 2012. "Seed market liberalization, hybrid maize adoption, and impacts on smallholder farmers in Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126231, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126231
    DOI: 10.22004/ag.econ.126231
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mulubrhan Amare & Solomon Asfaw & Bekele Shiferaw, 2012. "Welfare impacts of maize–pigeonpea intensification in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 43(1), pages 27-43, January.
    2. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    3. Pray, Carl E. & Ramaswami, Bharat & Kelley, Timothy, 2001. "The impact of economic reforms on R&D by the Indian seed industry," Food Policy, Elsevier, vol. 26(6), pages 587-598, December.
    4. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    5. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    6. Anwar Naseem & David J. Spielman & Steven Were Omamo, 2010. "Private-sector investment in R&D: a review of policy options to promote its growth in developing-country agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 143-173.
    7. Smale, Melinda & Jayne, T.S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
    8. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413.
    9. Hugo De Groote & George Owuor & Cheryl Doss & James Ouma & Lutta Muhammad & K. Danda, 2005. "The Maize Green Revolution in Kenya Revisited," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 2(1), pages 32-49.
    10. Japhether, W. & De Groote, Hugo & Lawrence, M. & Danda, Milton Kengo & Mohammed, Lutta, 2006. "Recycling Hybrid Maize Varieties: Is It Backward Practice or Innovative Response to Adverse Conditions in Kenya?," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25726, International Association of Agricultural Economists.
    11. Deepthi Elizabeth Kolady & David J. Spielman & Anthony Cavalieri, 2012. "The Impact of Seed Policy Reforms and Intellectual Property Rights on Crop Productivity in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 361-384, June.
    12. Byerlee, Derek & Heisey, Paul W., 1996. "Past and potential impacts of maize research in sub-Saharan Africa: a critical assessment," Food Policy, Elsevier, vol. 21(3), pages 255-277, July.
    13. Ira Matuschke & Matin Qaim, 2009. "The impact of social networks on hybrid seed adoption in India," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 493-505, September.
    14. Putterman, Louis, 1995. "Economic reform and smallholder agriculture in Tanzania: A discussion of recent market liberalization, road rehabilitation, and technology dissemination efforts," World Development, Elsevier, vol. 23(2), pages 311-326, February.
    15. Ira Matuschke & Matin Qaim, 2008. "Seed Market Privatisation and Farmers’ Access to Crop Technologies: The Case of Hybrid Pearl Millet Adoption in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 498-515, September.
    16. Brian Cooksey, 2011. "Marketing Reform? The Rise and Fall of Agricultural Liberalisation in Tanzania," Development Policy Review, Overseas Development Institute, vol. 29, pages 57-81, January.
    17. Langyintuo, Augustine S. & Mwangi, Wilfred & Diallo, Alpha O. & MacRobert, John & Dixon, John & Bänziger, Marianne, 2010. "Challenges of the maize seed industry in eastern and southern Africa: A compelling case for private-public intervention to promote growth," Food Policy, Elsevier, vol. 35(4), pages 323-331, August.
    18. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.
    19. Morris, Michael L., 2002. "Impacts Of International Maize Breeding Research In Developing Countries, 1966-98," Impact Studies 23722, CIMMYT: International Maize and Wheat Improvement Center.
    20. Paul Winters & Alessandro Maffioli & Lina Salazar, 2011. "Introduction to the Special Feature: Evaluating the Impact of Agricultural Projects in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(2), pages 393-402, June.
    21. Pray, Carl E. & Ribeiro, Sharmila & Mueller, Rolf A. E. & Rao, P. Parthasarathy, 1991. "Private research and public benefit: The private seed industry for sorghum and pearl millet in India," Research Policy, Elsevier, vol. 20(4), pages 315-324, August.
    22. Hassan, Rashid M. & Mekuria, Mulugetta & Mwangi, Wilfred, 2001. "Maize Breeding Research In Eastern And Southern Africa: Current Status And Impacts Of Past Investments Made By The Public And Private Sectors, 1966-97," Impact Studies 23723, CIMMYT: International Maize and Wheat Improvement Center.
    23. George E. Battese, 1997. "A Note On The Estimation Of Cobb‐Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 250-252, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emiliano Magrini & Mauro Vigani, 2016. "Technology adoption and the multiple dimensions of food security: the case of maize in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 707-726, August.
    2. Barrett,Christopher B. & Sheahan,Megan Britney & Barrett,Christopher B. & Sheahan,Megan Britney, 2014. "Understanding the agricultural input landscape in Sub-Saharan Africa : recent plot, household, and community-level evidence," Policy Research Working Paper Series 7014, The World Bank.
    3. Terrance Hurley & Jawoo Koo & Kindie Tesfaye, 2018. "Weather risk: how does it change the yield benefits of nitrogen fertilizer and improved maize varieties in sub‐Saharan Africa?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 711-723, November.
    4. Jonas Kathage & Menale Kassie & Bekele Shiferaw & Matin Qaim, 2016. "Big Constraints or Small Returns? Explaining Nonadoption of Hybrid Maize in Tanzania," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 113-131.
    5. Krishna, Vijesh V. & Veettil, Prakashan C., 2014. "Productivity and efficiency impacts of conservation tillage in northwest Indo-Gangetic Plains," Agricultural Systems, Elsevier, vol. 127(C), pages 126-138.
    6. Nicholas Magnan & Abby M. Love & Fulgence J. Mishili & Ganna Sheremenko, 2020. "Husbands’ and wives’ risk preferences and improved maize adoption in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 743-758, September.
    7. Ye Jin & Qingning Lin & Shiping Mao, 2022. "Tanzanian Farmers’ Intention to Adopt Improved Maize Technology: Analyzing Influencing Factors Using SEM and fsQCA Methods," Agriculture, MDPI, vol. 12(12), pages 1-23, November.
    8. Mintewab Bezabih & Remidius Ruhinduka & Mare Sarr, 2016. "Climate change perception and system of rice intensification (SRI) impact on dispersion and downside risk: a moment approximation approach," GRI Working Papers 256, Grantham Research Institute on Climate Change and the Environment.
    9. repec:lic:licosd:35214 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christina Handschuch & Meike Wollni, 2016. "Improved production systems for traditional food crops: the case of finger millet in western Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 783-797, August.
    2. Jonas Kathage & Menale Kassie & Bekele Shiferaw & Matin Qaim, 2016. "Big Constraints or Small Returns? Explaining Nonadoption of Hybrid Maize in Tanzania," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 113-131.
    3. Nassul S. Kabunga & Thomas Dubois & Matin Qaim, 2012. "Yield Effects of Tissue Culture Bananas in Kenya: Accounting for Selection Bias and the Role of Complementary Inputs," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 444-464, June.
    4. Krishna, Vijesh V. & Spielman, David J. & Veettil, Prakashan C. & Ghimire, Subash, 2014. "An empirical examination of the dynamics of varietal turnover in Indian wheat:," IFPRI discussion papers 1336, International Food Policy Research Institute (IFPRI).
    5. Mukasa Adamon N., 2016. "Working Paper 233 - Technology Adoption and Risk Exposure among Smallholder Farmers: Panel Data Evidence from Tanzania and Uganda," Working Paper Series 2328, African Development Bank.
    6. Vaiknoras, Kate A. & Larochelle, Catherine & Birol, Ekin & Asare-Marfo, Dorene & Herrington, Caitlin, 2017. "The Roles of Formal and Informal Delivery Approaches in Achieving Fast and Sustained Adoption of Biofortified Crops: Learnings from the Iron Bean Delivery Approaches in Rwanda," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258288, Agricultural and Applied Economics Association.
    7. Terrance Hurley & Jawoo Koo & Kindie Tesfaye, 2018. "Weather risk: how does it change the yield benefits of nitrogen fertilizer and improved maize varieties in sub‐Saharan Africa?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 711-723, November.
    8. repec:lic:licosd:34413 is not listed on IDEAS
    9. Kazushi Takahashi & Rie Muraoka & Keijiro Otsuka, 2020. "Technology adoption, impact, and extension in developing countries’ agriculture: A review of the recent literature," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 31-45, January.
    10. Ogada, Maurice & Nyangena, Wilfred, 2015. "Impact of Improved Farm Technologies on Yields: The Case of Improved Maize Varieties and Inorganic Fertilizers in Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212590, International Association of Agricultural Economists.
    11. Pray, Carl E. & Nagarajan, Latha, 2009. "Pearl millet and sorghum improvement in India:," IFPRI discussion papers 919, International Food Policy Research Institute (IFPRI).
    12. Mary Thuo & Alexandra Bell & Boris Bravo-Ureta & Michée Lachaud & David Okello & Evelyn Okoko & Nelson Kidula & Carl Deom & Naveen Puppala, 2014. "Effects of social network factors on information acquisition and adoption of improved groundnut varieties: the case of Uganda and Kenya," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(3), pages 339-353, September.
    13. Madan M. Dey & Ferdinand J. Paraguas & Patrick Kambewa & Diemuth E. Pemsl, 2010. "The impact of integrated aquaculture–agriculture on small‐scale farms in Southern Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 67-79, January.
    14. Tavneet Suri, 2006. "Selection and Comparative Advantage in Technology Adoption," Working Papers 944, Economic Growth Center, Yale University.
    15. Duong, Pham Bao & Thanh, Pham Tien, 2019. "Adoption and effects of modern rice varieties in Vietnam: Micro-econometric analysis of household surveys," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 282-292.
    16. Nyangena, Wilfred & Juma, Ogada Maurice, 2014. "Impact of Improved Farm Technologies on Yields: The Case of Improved Maize Varieties and Inorganic Fertilizer in Kenya," RFF Working Paper Series dp-14-02-efd, Resources for the Future.
    17. Tavneet Suri, 2009. "Selection and Comparative Advantage in Technology Adoption," NBER Working Papers 15346, National Bureau of Economic Research, Inc.
    18. Million Sileshi & Reuben Kadigi & Khamaldin Mutabazi & Stefan Sieber, 2019. "Impact of soil and water conservation practices on household vulnerability to food insecurity in eastern Ethiopia: endogenous switching regression and propensity score matching approach," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 797-815, August.
    19. Shikuku, K.M., 2018. "Information exchange links, knowledge exposure, and adoption of agricultural technologies in Northern Uganda," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275974, International Association of Agricultural Economists.
    20. Goundan, Anatole & Faye, Amy & Henning, Christian H. C. A. & Collins-Sowah, Peron A., 2020. "Investing in risky inputs in Senegal: Implications for farm profit and food production," Working Papers of Agricultural Policy WP2020-07, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    21. Spielman, David J. & Mekonnen, Dawit Kelemework & Alemu, Dawit, 2012. "Seed, fertilizer, and agricultural extension in Ethiopia," IFPRI book chapters, in: Dorosh, Paul A. & Rashid, Shahidur (ed.), Food and agriculture in Ethiopia: Progress and policy challenges, chapter 4, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    Agricultural and Food Policy; Consumer/Household Economics; Crop Production/Industries;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:126231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.