Appendix to Chapter 6


 lean season, from July to October, to prevent price rises as recorded e.g. in August in
 table A6-2).

These conclusions are, of course, only valid with reference to the situation in 1994 (which
was a relatively poor season) and from an aggregate national (with a certain Addis Ababa
urban biased) perspective. Experiences show that the situation differs from region to region
and may change drastically from year to year. Improved crop and market assessments, as well
as continuous market and price monitoring at central and regional levels, are required, to
ensure timely and appropriate response.

Example 2: Analysis of the food situation and food policy issues in Cape Verde

Due to natural constraints (low rainfall) Cape Verde is a country with a large structural food
deficit. Figure A6-2 presents a model of the structural deficit which may approximately
describe the Cape Verde food (cereal) situation.

Figure A6.2: Model of the composite structural food (cereal) deficit in Cape Verde

 price
 ce requirements

 production/
 domestic supply
 effective
 demand




 mp - - mpl: market price of local maize


 ippj -- - - - -- --- - ippi: import parity price of imported cereals
 mpi ---------------------- -- -- - - mp: market price of imported cereals

 -- .' volume
 A C B R


The Cape Verdean food situation is characterized by the following main features.

* According to food balance sheet calculations, total food (cereals) consumption
 requirements amount to approximately 80,000 MT p.a..

 Domestic cereal production is confined to maize and amounts to about 10,000 MT in an
 average year. Local grain production is very inelastic to price variations. It is mainly
 determined by household subsistence needs, the general low production potential and
 rainfall variations. Nevertheless, the local maize is highly preferred by the Cape Verdean
 consumers, and the little local maize which finds its way to the market achieves prices
 (mpl) significantly above (more than double) the market prices of imported maize.


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