Impact Of Agricultural Market Reforms On Smallholder Farmers In ...
Impact Of Agricultural Market Reforms On Smallholder Farmers In ... Impact Of Agricultural Market Reforms On Smallholder Farmers In ...
wheat, and fruits and nuts, a higher percentage of households in the North consume the product compared to households in the Center or South (see Table 5.47). Maize occupies a higher share of the total food budget of households in the Central and Southern region (around one-third in the Center and South compared to 20 percent in the North) (see Table 5.48). In the North, following maize, the most important items in terms of their share of the total food budget are rice (11 percent), fish and eggs (8 percent each), and potatoes and tomatoes (6 percent each). In the Center, eggs (8 percent), fish (7 percent), and groundnuts (6 percent) are the other important food items after maize. In the South, the other important food items are fish (10 percent), leafy vegetables (7 percent), and rice, beans/pulses, and eggs (5 percent each). Food expenditure by gender of the household head. Table 5.49 shows that for most food commodities (except beans/pulses, groundnuts, sorghum, other legumes and leafy vegetables), a lower percentage of female-headed households consume the commodity compared to male-headed households. This may indicate that female-headed households are worse off in terms of the diversification of their diet. Lower levels of total income limit the food purchasing power of female-headed households; they have to rely more on home produced food which is not as diverse as what they can find in the market. Food expenditure by expenditure category. As per capita expenditure rises, the number of food items consumed by the household also increases, implying a more diversified diet for richer households. As expected, this difference is more significant for more expensive food items such as rice, onions, fruits and nuts, beef, chicken, other meat, eggs, dairy products, cooking oil, sugar, sweets, soft drinks, and food away from home (see Table 5.50). In terms of the share in the total food budget, only for maize and leafy vegetables, the share of the food budget declines with per capita expenditures (see Table 5.51). For the poorest expenditure group, maize constitutes 47 percent of the total food budget, while for the richest expenditure group it accounts for 26 percent. The other important food items for the wealthier farmers are fish and eggs. Non-food expenditure The average value of non-food expenditures among farm households in Malawi is MK 3.3 thousand per household or MK 697 per capita. Household goods, and “leisure and other” are the two largest categories, accounting respectively for 32 and 20 percent of non-food spending. 261
This is followed by clothing (17 percent), transportation (13 percent), and energy (11 percent) (see Table 5.52). Non-food spending patterns vary somewhat across regions. Households in the North spend a larger share of their non-food budget on energy and transportation and less on household goods and “leisure and other” than households in the other two regions. The Central and Southern regions show similar non-food expenditure patterns except that households in the Center spend a higher share on “leisure and other” and a smaller share on transportation (see Table 5.53). The structure of non-food spending does not differ much between male- and female-headed households. Female-headed households appear to spend a somewhat larger share of the non-food budget to household goods. On the other hand, male-headed households allocate a larger share to “leisure and other” (see Table 5.54). The composition of non-food spending does vary significantly across expenditure categories. The share of the non-food budget devoted to clothing, household goods, education, and social events falls with per capita expenditure. For example, clothing accounts for 24 percent of nonfood spending among households in the poorest category, but the percentage falls to just 11 percent in the highest expenditure category. The share on “leisure and other”, on the other hand, increases quite significantly with household expenditure levels (from 10 percent in the poorest households to 34 percent in the richest ones) (see Table 5.55). Regression analysis of expenditure. This section uses regression analysis to examine the relationship between various household characteristics and its standard of living, as measured by per capita consumption expenditure. The adjusted R 2 for the regression is 0.42. The results are reported in Table 5.56 and are summarized as follows: Both household size and the number of children have a negative effect on the level of consumption expenditures per capita. This suggests that farmers with larger family size and more children are also poorer because they have a larger number of non-working persons. Expenditures per capita decrease by about 11 percent with household size and 64 percent with the number of children. 262
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wheat, and fruits and nuts, a higher percentage of households in the North consume the product<br />
compared to households in the Center or South (see Table 5.47). Maize occupies a higher share<br />
of the total food budget of households in the Central and Southern region (around one-third in the<br />
Center and South compared to 20 percent in the North) (see Table 5.48). <strong>In</strong> the North, following<br />
maize, the most important items in terms of their share of the total food budget are rice (11<br />
percent), fish and eggs (8 percent each), and potatoes and tomatoes (6 percent each). <strong>In</strong> the<br />
Center, eggs (8 percent), fish (7 percent), and groundnuts (6 percent) are the other important food<br />
items after maize. <strong>In</strong> the South, the other important food items are fish (10 percent), leafy<br />
vegetables (7 percent), and rice, beans/pulses, and eggs (5 percent each).<br />
Food expenditure by gender of the household head. Table 5.49 shows that for most<br />
food commodities (except beans/pulses, groundnuts, sorghum, other legumes and leafy<br />
vegetables), a lower percentage of female-headed households consume the commodity compared<br />
to male-headed households. This may indicate that female-headed households are worse off in<br />
terms of the diversification of their diet. Lower levels of total income limit the food purchasing<br />
power of female-headed households; they have to rely more on home produced food which is not<br />
as diverse as what they can find in the market.<br />
Food expenditure by expenditure category. As per capita expenditure rises, the<br />
number of food items consumed by the household also increases, implying a more diversified diet<br />
for richer households. As expected, this difference is more significant for more expensive food<br />
items such as rice, onions, fruits and nuts, beef, chicken, other meat, eggs, dairy products,<br />
cooking oil, sugar, sweets, soft drinks, and food away from home (see Table 5.50). <strong>In</strong> terms of the<br />
share in the total food budget, only for maize and leafy vegetables, the share of the food budget<br />
declines with per capita expenditures (see Table 5.51). For the poorest expenditure group, maize<br />
constitutes 47 percent of the total food budget, while for the richest expenditure group it accounts<br />
for 26 percent. The other important food items for the wealthier farmers are fish and eggs.<br />
Non-food expenditure<br />
The average value of non-food expenditures among farm households in Malawi is MK<br />
3.3 thousand per household or MK 697 per capita. Household goods, and “leisure and other” are<br />
the two largest categories, accounting respectively for 32 and 20 percent of non-food spending.<br />
261