AN ECONOMETRIC ANALYSIS OF THE SUPPLY OF MAIZE IN LESOTHO

Lesotho is largely agrarian. More than 90 percent of the Basotho population lives in rural areas. Agriculture provides an important source of income for over 50 percent of the rural population and is the largest contributor to GDP. Apart from migrant labour in the Republic of South Africa (RSA) and limited work in administration and commerce in the few urban centers, there are few employment opportunities other then agriculture. Under production of maize coupled with a growing population has lead to great shortages of maize in Lesotho. The hunger and nutritional problems associated with the maize shortage problem prompted the Government of Lesotho to set out self-sufficiency goals, which if met would help solve the maize shortage problem. In view of the great maize shortage that Lesotho is faced with, the intent of this paper is to (1) investigate the most important determinants of maize supply; (2) make supply and demand projections of maize to 1985; and (3) to formulate alternatives which can be used by decision makers in setting policy