Impact Of Agricultural Market Reforms On Smallholder Farmers In ...

Soulé (1996) describes the evolution of maize policy and analyzes a survey of maize traders. The
survey reveals that 1) market information is transmitted by word of mouth, 2) that trade is selffinanced
with formal credit playing almost no role, and 3) that capital, information, and trader
associations represent important barriers to entry. Overall, he argues that maize markets have
changed little since reform because they were not effectively regulated before the reforms.
Rexportation trade is the topic of a comprehensive analysis by Igue and Soule (1992). This study
covers the history, patterns, and motives of the large re-exportation business in Benin. In the
1980s, as much as 50 percent of Benin’s imports were re-exported, mostly to Nigeria and mostly
through informal trade. In addition to various non-food items, rice, wheat, and wheat flour were
(and continue to be) re-exported. Informal re-exports to Nigeria have been motivated mainly by by
Nigerian import restrictions, so the flows have changed abruptly in response to numerous policy
reversals. The authors show that Benin benefits through the income of traders, even if the state is
often unable to tax this informal trade.
Galtier and Tassou (1998) supply an update of the re-exportation trade. The estimate that in 1995
reexportation accounted for 25 percent of the port traffic in Cotonou and generated 6 percent of
Benin’s gross domestic product. They point out that, to the extent that reexportations are based on
Nigerian trade restrictions, import liberalization in Nigeria will greatly reduce Benin’s reexportation
business, with possible negative consequences for thousands of traders in Benin.
Alapini (1998) points out that Benin is self-sufficient in most of the main staple food crops.
Nonetheless, several problems make food security in Benin an issue of concern. First, there are
regional and annual variations in production that cause localized or temporary food insecurity.
Second, the agricultural economy in Benin is strongly affected by events and policies in Nigeria,
which can cause strong shifts in food prices and availability in Benin. Third, the consumption of
animal products is low (16 kg/person/year), leading to inadequate protein intake.
Poverty The most comprehensive study of rural poverty is the Enquête sur les Conditions
de Vie des Ménages Ruraux (ECVR). This study involved four rounds of household surveys in
1994-95, with a sample of 1040 households in the first two rounds and 1350 in the second two
rounds. This study estimated a global poverty line of 56,600 FCFA/adult equivalent/year, finding
33 percent of the households below that line. Among the eight agro-ecological zones used, the
poverty rate was highest (47 percent) in the cotton zone of central Benin, followed by the extreme
north and the terre de barre zone in southern Benin. The average expenditure was 97 thousand
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