Interrelationships in maize markets in Southern Africa II: Welfare aspects of the farmer support programme

Welfare aspects of a successful farmer support programme (FSP) in the developing areas of Southern Africa are analysed by utilizing a sectoral linear programming model that considers the interrelationships in agricultural markets in Southern Africa. The effect of an effective FSP on a specific interest group with respect to welfare transfers, for example consumers of a specific product or producers in a specific region, will depend on the marketing policy followed, as well as on the effectiveness of the FSP. This highlights the need for an overall policy plan which considers all related industries, products and other relevant factors simultaneously. When interests conflict, as is the case with an effective FSP, policy makers cannot escape the necessity of choosing between conflicting interests. They should, however, make explicit their own value judgement or that of the institution being served.

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Associate Professor, Department of Agricultural Economics. University of Pretoria.