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Markets and Livelihood Security

Markets and Livelihood Security. A Quantitative Approach. Objectives. Overall Assess impact of SP2 and TIP on smallholder livelihoods in terms of interaction between markets and farming decisions. Objectives. Specific: Impact of SP2 & TIP on

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Markets and Livelihood Security

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  1. Markets and Livelihood Security A Quantitative Approach

  2. Objectives Overall • Assess impact of SP2 and TIP on smallholder livelihoods in terms of interaction between markets and farming decisions

  3. Objectives Specific: Impact of SP2 & TIP on • maize & input markets and ganyu, and implications on farming decisions • farm incomes, consumption, production and demand for inputs • demand and supply of ganyu, and payment rates for ganyu

  4. Farmers’ incomes • Diversity in income sources • Crop sales for over half of households • About 25% comes from crop sales • Other important sources:Ganyu wages & small business • Not much difference between TIP recipients and non-recipients

  5. Maize and cash crops sales • While 58% of farmers sell crops for cash • Only 20% of the households sell maize • Income from sales of maize is relatively low compared to other crops

  6. Maize and cash crops sales • Maize has the lowest ‘market ratio’ of all crops • Sweet potatoes, cassava and beans have relatively high market ratios • Tobacco has the highest market ratio

  7. Income-Expenditure on Inputs: Maize • Most farmers do not aim for a profit on maize • Mean maize sales ranged from MK287 (P1) to MK2,092 (P5) in 1999/2000 • Expenditure on fertiliser in 00/01: Mean: MK1,986 • Expenditure on improved seed in 00/01: Mean: MK623

  8. Expenditure on food (maize) • One-quarter of farmers were buying food in the 2000 post-harvest period • This rose to 60% in the 2000/01 lean period  Majority not self-sufficient: purchasing  Availability and price of maize critical to food security in rural areas

  9. Ganyu supply and demand • Around 25% of farmers used ganyu in 2000/01 • TIP had little impact on the supply and demand • Demand influencing factors 1. Pressure of work 2. Availability of cash or food for payment 3. Availability of ganyu 4. Rates of pay for ganyu

  10. Income from ganyu From 2000 harvest to April 2001 • about 53% of households earned little or nothing from ganyu • around 20% earned three quarters or more of their aggregate income from ganyu

  11. Payment for ganyu • Around 2/3 paid in cash, and 1/3 in kind • Grain for food or Ufa most common in-kind payment • Men employed on a wide range of crops,women on maize mainly • Women paid around half of what men earned for similar tasks

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