Improving Agricultural Market Performance:
Developing Agricultural Market Information Systems
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cites the case Guinea Bissau, where prices are broadcast in Portuguese though most of the
farmers speak a local language (Creole). He adds that in Malaysia, publishing prices on bulletin
boards failed to attract uptake mainly because farmers and traders needed more than price
information.The limitations of the 1GMIS noted above appeared to stymie uptake and utilisation by market
actors such as farmers and traders in trade transactions. The high cost of running the systems
also created major sustainability challenges (Bennett and Layola, 1996). It is therefore not
surprising that in Zambia, as in many other developing countries, there has been further
advances in MIS, evolving from the 1GMIS to 2GMIS and beyond in order to better serve market
players (see Section 3.5.1 below for further discussion of changes which have occurred in
Zambia). There is no doubt, however, that the data generated was used by policymakers in
tracking food price trends and inform interventions to moderate shocks in the domestic grain
markets, especially for maize for human consumption and uptake by, for example, the poultry
industry.
3.3 PUBLIC 2GMIS MODELS: EXAMPLES FROM ETHIOPIA Public 2GMIS models are mostly based on the first generation models but with definitive
enhancements in the form of inclusion of recent ICT te nologies. They are operated based on
the principle that market information is a public good The focus remains on national level
systems which are hosted by public institutions, especia theMinistries of Agriculture andwith
funding provided mainly by the government. Though most of the new 2GMIS continue to focus
on staple cereals and livestock, the range of products/commodities covered has increased. Price
is still the primary information type which is disseminated but the use of the internet andmobile
telephony has become prominent. Despite targeting market players, the primary objective of
these systems remains that of informing public policy actions.Examples of such models in non-OIC countries include the Systeme d’Information des Filieres
(SIF) in Cameroon and Mozambique’s Information System for Agricultural Markets (SIMA).
Zhang et al. (2016) report that the Government of China has, in the past two decades, promoted
improved agricultural market information services by investing in centres at
regional/provincial levels which are well equipped with computers and other ICT facilities to
serve farmers ‘free of charge’. The illustrative case we discuss, however, is that of Ethiopia.The agricultural sector is of immense importance to the economy of Ethiopia. The sector
contributes an estimated 43.0%of GDP in 201 . The sector also made a significant contribution
to the pressive economic growth record pos d by the country in recent times. Between 2003
and 2 3, average GDP growth rate was 10.8% and 31% of this growth was attributable to the
sector Cereals, especially teff, wheat and maize are important strategic staples whilst coffee
and p ses are key export crops. The existing MIS are therefore set around these groups of
commodities and are characterised by significant differences as discussed below.
7 A public good is defined as something which exhibits non-rivalry and non-excludability i.e. someone’s use of a good does
not exclude another from using it. For example, street lighting.
8 Source: UNDP Country Economic Brief – Analysis Issue No. 1/Feb.2014 and the Economist Intelligence Unit.
9 Source: IMF Press Release No. 15/286 June 19, 2015.