Maize market integration

Abstract

Agricultural marketing remains a challenge; this is because a large proportion of the population is engaged in aform of small-scale agricultural production and marketing that is characterised by a multitude of constraints andmarket imperfections. Paramount among the constraints are limited land availability, poor physical and legalinfrastructure, high transaction costs and few available and alternative livelihood support systems. For some of theseconstraints to be removed, there is the need for information flow. Thus, it is believed that, spatial price transmissionor market integration measures, the degree to which markets at geographically separated locations share commonlong-run price or trade information on a homogenous commodity. Using the co-integration approach, the results ofthe study using either Techiman or Kumasi as the producer markets of maize, the following markets Bolga, Wa, Ho,Tamale, Mankesim, Koforidua, Accra, Cape Coast and Takoradi/Sekond (as consumer markets) shows that there isa long run price transmission relations with the consumer markets. However, Bolgatanga market is the onlyexception. It is recommended that the Ministry of Food and Agriculture should intensify collection anddissemination of data on maize prices to both consuming markets and producing markets. This can be enhanced byGovernment establishing market information centres in these markets where both traders and farmers could go forinformation on the price trend of the commodity in other market(s).