The Impact of Structural Adjustment on Food Production in Zambia

The paper examines the impact of selected structural adjustment policies on food production in Zambia. Using a four year panel of post-harvest data, a system of six crops, two variable inputs and three fixed inputs is estimated. The resulting supply responses suggest a negatively slopped supply curve for sorghum and millet and this has been attributed to the presence of credit constraints. Simulations are conducted to asses the impact of the removal of subsidies and exchange rate controls. The results indicate that these policies have led to increased food production although the magnitude of the increase is in general not very large. The results also indicate a significant fall in fertiliser use. Information, credit and distance to the market are also very important variables for food production. Deliberate efforts are needed to develop both input and output markets and to provide more formal credit institutions targeted at small scale farmers. * University of Hertfordshire, Hatfield, UK Email: [email protected] or [email protected]