Abstract

This study aimed to investigate the impacts of fluctuations in agricultural production, consumption and marketing bottlenecks on main food prices in Gadarif State, east of Sudan in the period of 1996 to 2011. On the supply side, an adjusted Nerlovian model of supply response was used to calculate elasticities of prices of selected agricultural products. On the consumption side, the distribution of the agricultural supply among local consumption and external export was analyzed. The price margin of these products was calculated to explain how this margin is shared by the different market players. With reference to results of this study, supply response analysis of sorghum and sesame showed that production did not respond to finance or price factors, indicated by the low elasticities. Analysis of marketing channels of the above crops showed that the various fees and taxes imposed on different crops have weakened the competitiveness of export of these crops and hindered farmers from gaining reasonable revenues. Thus, prices of these crops in some seasons exceeded the world prices. Results of the price margin showed that the real producers receive the minimum price margin as compared to the other market players.

Key words: Supply response, price margin, market channels, agricultural surplus, competitiveness.

Abbreviation

ERDP, Eastern Sudan Recovery and Development Program; ESPA, East Sudan Peace Agreement; MoA&F, Ministry of Agriculture and Forestry; MAC, Mechanized Agriculture Corporation; MoAR&F, Ministry  of  Animal  Resources  and  Fishery;   MoFE&L, Ministry of Finance, Economy and Labor Force; GDP, gross domestic product; OLS, ordinary least squares; FAO, Food and Agriculture Organization; FGP, farm gate price; WSP, wholesale price; RP, retail price; NGOs, non-government organizations; SRC, Strategic Reserve Corporation; US$, United States of America dollar.