Is Smallholder Horticulture the Unfunded Poverty Reduction Option in Zambia?: A Comparative Assessment of Welfare Effects of Participation in Horticultural and Maize Markets

Type Working Paper - Indaba Agricultural Policy Research Institute (IAPRI)
Title Is Smallholder Horticulture the Unfunded Poverty Reduction Option in Zambia?: A Comparative Assessment of Welfare Effects of Participation in Horticultural and Maize Markets
Author(s)
Publication (Day/Month/Year) 2015
URL http://fsg.afre.msu.edu/zambia/wp96_rev.pdf
Abstract
Recent significant agricultural growth without rural poverty reduction in Zambia is causing
concern to policy makers, development specialists and other sector stakeholders. This is
especially when it is generally agreed by economists that agricultural growth is the most
powerful tool out of poverty for developing countries where the majority of the population is
in agriculture. This state of affairs is a direct result of Zambia’s policy focus since the pre- and
post-independence period on a single crop maize, for which it has in the past decade spent over
60% of the annual public expenditure in the sector through maize input and output subsidies.
Unfortunately, the majority of the smallholder farmers (70%) cultivate less than two hectares
and account for only 31% of all the agricultural production. This means that the agricultural
growth being recorded in recent years is only being experienced by a minority of relatively
better off smallholder farmers who are benefiting from the Government support to the maize
subsector.

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