The Dynamics of Agricultural Market Participation and Performance in Central and Northern Mozambique: Evidence from a Panel Survey

This flash examines trends in market participation by smallholder farmers in rural central and northern Mozambique between 2008, when prices of many commodities rose to previously unseen levels, and 2011. Using panel data for 2008 and 2011, the analysis describes marketing dynamics – entry, exit, and persistence of participation, and the trends in marketing intensity associated with those dynamics. Overall, we find that market participation has increased for virtually all major crops maize, cassava, sweet potato, sesame, sunflower, soybeans, pigeonpea, common beans and groundnuts. There is, however, some variation across provinces and crops, reflecting the differing baseline conditions, agro-ecology, and changes in market demand. Access to market information and extension services appears to have improved (with some differences across provinces), and may have contributed to better access to markets. However, access to credit and association membership, both of which can assist farmers to increase production and market participation, remains limited.