University of Khartoum

Evaluation of Sorghum Markets in the Sudan with Emphasis on Gadarif Area

Evaluation of Sorghum Markets in the Sudan with Emphasis on Gadarif Area

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Title: Evaluation of Sorghum Markets in the Sudan with Emphasis on Gadarif Area
Author: Pakwan, James Thubo Ayul
Abstract: This study aimed at assessing the efficiency of the marketing system of sorghum grains in Gadarif auction market. Different analytical methods including Socio - economic characteristics, structure - conduct - performance approach were used to examine market structure and organization and participants conduct and their effect on market efficiency. Temporal and spatial price methods were also applied to examine effect of seasonality and to test for interregional integration among the selected four main sorghum markets in the Country. The study used primary data collected from field survey in the agricultural season 2003/2004 and secondary data from the related institutions. The populations of 174 wholesalers, retailers and 101 household consumers operating in the market were interviewed for necessary data. The main findings of the study were:- =607; Socio-economic characteristics and Structure – Conduct -Performance approach: 1. Low level of education and training, lack of experience and expectation among the market participants were of negative impact on market performance; while wealth accumulation over time and proximity of market dealers were among the leading elements with positive impact on market performance. 2. The low market share of the top four market actors during the agriculture season 2003/2004 as indicated by the equation of Concentration Ratio (CR4=26.8%) and the share of the lowest ten actors (CR10=0.9 %) indicated that, none of the market actors whether buyers, sellers had influence on setting the prices and flow of product in the market This situation was confirmed by other indicators such as existence of competition, freedom of entry into the market , presence of numerous buyers, sellers and other market participants, product differentiation through varieties, open auction market system and access to information. 3. Gadarif auction crop market had shown progress and development during the period of study in terms of infrastructure, regulations, human development, production varieties, and market information dissemination and in financing developmental and services projects. =607; Temporal price analysis 1. Price instability, unstable and unpredictable seasonal pattern were a common phenomena among the selected four markets (Gadarif, Khartoum, El obied and Damazine markets) as indicated by the coefficient of variation results. Inflation, seasonality, natural and man-made disaster were the main reasons. 2. Prices of the crop tend to decrease in the months of harvest and start to rise gradually until it reaches the peak at the end of harvest where output production are assessed and stored. This was revealed by the results of coefficient of variation and fluctuation percentages. 3. The Grand seasonal indices (GSI) have shown a general trend in seasonal prices but were unstable, erratic and unpredictable. This situation was reflected by the standard deviation results. 4. The Grand seasonal indices (GSI) data for El Obeid and Khartoum were found close to each other. The explanation is that, the two markets are located in consumption-deficit areas while (GSI) for Gadarif and Damazine were also found to be close to each other because both markets are located in productive - surplus areas. =607; Spatial price analysis 1. All the series of the selected markets contained a unit root (the absolute values of the level are below the absolute critical values at (5%)) and integrated in the same order. 2. Gadarif, Damazine and Khartoum markets were found co-integrated. This means the three markets operate as one unit in which changes in prices in one market are reflected in the other markets immediately. Flow of information among the market participants and improvement in transportation system are the main reasons for this situation. 3. El Obied market was found co-integrated with Gadarif and not with Khartoum and Damazine. The main reasons were: good tarmac road and the short distance. Based on the above findings, Gadarif crop market was found relatively functioning efficiently because it has managed to achieve most of its objectives for which it has been established. Also, it was found co-integrated with other selected sorghum grains markets in the country. As such, its experience should be developed and expanded to be a model that can be emulated by other states in the country trading in similar commodity. For ensuring efficiency of the marketing system in the Gadarif area, the following recommendations are essential: i- Maintenance, development and modernization of the current marketing system by the relevant institutions through: - Provision of timely and accurate information on prices, output flow and market dealers through the different media. - Revision of current market taxes and other charges levied on the market operators. - Strengthening the communication network for coordinating purposes within the main market and sub-markets and outside. - Availing other services in the market such as weighing tools and equipment, water, electricity for the market dealers. ii- Reducing some undesirable middlemen and brokers operations in the markets with the aim of reducing operation costs. iii- Strengthening the current trade unions, reorganizing them and directing them more to promote the interest of their members. iv- Encouraging the strategic grain storage policy for food security, but with restrictions to the various states, charity organizations and other institutions granted approvals not to direct the grain to the markets. v- Conducting more research in different components of the marketing system such as transport, financing, policies, laws and regulations and market structure and dealer’s conducts with support from the relevant institutions.
Description: 208 page
URI: http://khartoumspace.uofk.edu/handle/123456789/12802
Date: 2015-06-16


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