Why are African commodity exchanges languishing? A case study of the Zambian Agricultural Commodity Exchange

Food price volatility and high transactions costs remain major problems in African food markets. These persistent problems provide a strong theoretical justification for the development of commodity exchanges. However, the majority of African commodity exchanges remain underdeveloped. Through a case study of the Zambian Agricultural Commodity Exchange (ZAMACE), this article explores why agricultural commodity exchanges in the region have thus far failed to develop into sustainable trading platforms and identifies the most important changes needed to enhance their performance.     

Ein Zollbünduis mit den Niederlanden

Prof.G. K. Anton. Ein Zollbündnis mit den Niederlanden.     

INCOME TAX DATA AND FARM FINANCIAL STATISTICS

Tracing the income patterns of individual farm operators whose major source of income is generally derived from farming indicates that off-farm income is becoming an increasingly important income component. The relative importance of off-farm income has nearly quadrupled during the last 20 years, rising from about 10 percent of total income to about 37 percent of total income. Most of this off-farm income can be traced to wages and salaries. These fractions are heavily dependent upon relative income levels. In 1970, very low income farmers posted an aggregate net farm loss whereas the $15,000 - $20,000 class secured about three-quarters of their total income from farm sources. In this same year, wages and salaries were generally the prime off-farm income source for farmers with an assessed income of less than $20,000. Dividends and interest were more important to farmers with an income in excess of $20,000. These differences are faithfully reflected in the regional compilations. As a percent of total income, off-farm income ranged from 41 percent in Ontario to about 29 percent in Quebec. The composition of off-farm sources also varies considerably between regions. In 1970 the income position of taxable unincorporated farm operators (who relied on the farm for their major source of income) remained relatively unfavorable. These farmers still had one of the lowest average incomes of any major occupational class in Canada, with an income distribution which was relatively equally distributed between income classes and not unlike that of the national average. These assessed income statistics, of course, are not necessarily indicative of the welfare position of the respective occupational classes. The calculations conducted are simply illustrative of how income tax statistics can be utilized to facilitate our understanding of the income structure in primary agriculture today. The exercise simply underlines the observation that: The fact that there are conceptual differences between income tax data and other data sources should not detract from the usefulness of the income tax data …. Income tax statistics can stand as an independent data source for the analysis of a variety of issues [13]. For many purposes the tax definition of a farm operator may be more operational than the concept of a farmer as defined in the Census of Agriculture. We might profit considerably from further analyses which attempt to disaggregate Census farms into more homogeneous farm-types using the tax statistics available.