Institutions, Production and Marketing of maize in Zimbabwe. Case of Marondera District of Mashonaland East Province

Food security situation in Zimbabwe is deteriorating despite the efforts made by the government for embarking on agrarian reforms in terms of redressing colonial imbalances and taking on the major trading investment risks. The government assured the resettled farmers that if they invest in maize production, they would not be stranded by lack of marketing services as the markets are liberalized. However, this market liberalization policy occurring in maize sector has resulted in A1 resettled farmers becoming more vulnerable to traders preying on their weaknesses as the policy is not living up to expectations and is failing to bring dramatic increases in agricultural growth. This may mean that sending children to school is a nightmare for those who depend on farming for educating their children, inadequate food in the home, unpaid loans and subsequent impoverishment. The resettled A1farmers will remain trapped in the poverty cycle as long as institutions are not corrected. The general aim of the study was to evaluate institutional factors influencing maize production and marketing by A1 resettled farmers of Marondera district in Mashonaland East province of Zimbabwe. Using a sample of 343 farmers randomly selected in Marondera District, different econometric models like Data envelopment Analysis, Cob Douglas, Binary logistic, and Tobit as well as descriptive statistics were used to analyse the data. Institutional variables were captured in two ways: as a dummy showing whether farmers have access to institutional variables and as a continuous variable indicating importance of institutions on maize production and marketing. The study found out that, most of the A1 farmers are old, with a mean age of 47 years and a maximum of 55 years of farming experience. It is also dominated by male farmers who are literate. Results also showed that most of A1 farmers from the sample are married and very few separated. These farmers sell most their maize and keep little for consumption though they are still using convectional farming methods. Most of the farmers from the sample generate their incomes from farming activities only and they have good access to market and production information as well as extension xvi messages through training .They however have poor access to financial credit and weak social capital as well as low contract farming. Results also indicated that A1 farmers pursue the formal supply chains than informal supply chains. It is noted that, A1 farmers participate in a number of markets that include agricultural inputs markets seed, fertilizers, chemicals.; credit markets which includes banks as well as labour markets which can in the form of (maricho). In terms production and marketing efficiency, the study found out that A1 farmers are technically, allocatively and economically inefficient. The maximum efficient score is 1 while the minimum score is 0.01 for both production and marketing stage. The mean scores for production stage are 0.195, 0.504 and 0.072 for technical, allocative and economic efficient respectively. The mean scores for marketing are 0.103, 0.688, and 0.068 for technical, allocative and economic efficiency respectively. Farmers are performing better at production stage than at marketing technically while there is better allocative and economic efficiency at marketing stage. Results for determinants of technical, allocative and economic efficiency at production stage showed that, cattle ownership, farming experience, access to financial credit and (member of farmer organisation) which was used as a proxy indicator for social capital ,access to information, contract farming, distance to input market ,area planted to maize and quantity of seed used influences marketing efficiency of A1 maize farmers in Marondera District. Access to credit, Access to market, distance to market, road infrastructure, farming experience and access to information influences technical, allocative and economic efficiency at marketing stage. Cooperative membership, road infrastructure, contractual farming arrangements, and access to financial credit and transport cost to market influence choice of marketing channel respectively. Finally results from the non linear cob Douglas reveals that, maize production is significantly influenced by contract with value chain actors, access to market xvii information, access to financial credit, total topdressing used , total basal fertilizer used, total herbicides used, and total area put under maize production. The results showed that, future of A1 resettled farmers depends on correcting the institutions which are of paramount importance for maize production and marketing. The study therefore recommended the government to improve institutional environment that has direct link with institutional innovations necessary for sustainable maize production and marketing. This can be done through correcting inefficiencies and ineffective institutions by creating and maintaining both environment and arrangement that will transform maize production and marketing systems to operate efficiently. The study presents policy options to address both production and marketing of maize arguing that new direction of production and marketing of maize depends on correcting dysfunctional institutions. Policy options include increasing A1 farmers access to financial credit by removing the stringent collateral requirements which are not attainable by most A1 farmers as their asset endowment is limited to non capital. Addressing imperfections in the input markets by improving the supply of chemical fertilisers and seed at affordable prices as this influences total area put under maize production. The other policy is for private companies and NGOs to offer contract farming to A1 maize farmers as this will help them to increase total area put under maize production, access to market, access to credit, and access to information and reduces long distances to purchase inputs. Introducing focused training to motivate resettled A1 farmers on formation farmer organisations as this assists in social capital which is an important asset in maize production and marketing.Improving road infrastructure by creating a fund that would be used to maintain the road rather waiting for DDF only