Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries

There is a general consensus that most of the poor in developing countries are net food buyers and food price increases are bad for the poor. This could be expected of urban poor, but it is also often attributed to the rural poor. Recent food price...

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Main Authors: Aksoy, M. Ataman, Isik-Dikmelik, Aylin
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2008/06/9496843/low-food-prices-pro-poor-net-food-buyers-sellers-low-income-countries
http://hdl.handle.net/10986/6660
id okr-10986-6660
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURAL ACTIVITIES
AGRICULTURAL ACTIVITY
AGRICULTURAL ECONOMICS
AGRICULTURAL INCOMES
AGRICULTURAL INPUTS
AGRICULTURAL POLICIES
AGRICULTURAL POLICY
AGRICULTURAL PRODUCERS
AGRICULTURAL PRODUCT
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTIVITY GROWTH
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL WAGE
AGRICULTURAL WAGES
AGRICULTURE
AVERAGE INCOMES
BENEFICIARIES
BUYER
CASH CROP INCOME
CASH CROPS
COMMODITIES
COMMODITY
CONSUMER
CONSUMER GOODS
CONSUMER PRICE INDEX
CONSUMERS
CONSUMPTION BASKET
CROP YIELDS
DATA SETS
DATES
DEVELOPING COUNTRIES
DEVELOPMENT ISSUES
DEVELOPMENT RESEARCH
ECONOMIC ACTIVITIES
ECONOMIC ACTIVITY
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC REVIEW
EMPIRICAL QUESTION
EXPENDITURE DATA
FARM ACTIVITIES
FARM ACTIVITY
FARM INCOMES
FARM PRODUCTIVITY
FARMERS
FARMING ACTIVITIES
FOOD AID
FOOD AID PROGRAMS
FOOD BASKET
FOOD BUYERS
FOOD CONSUMPTION
FOOD CROP
FOOD CROP PRODUCTION
FOOD CROPS
FOOD EXPENDITURES
FOOD INTAKE
FOOD ITEMS
FOOD NEEDS
FOOD OUTPUT
FOOD POLICY
FOOD PRICE
FOOD PRICES
FOOD PRODUCERS
FOOD PRODUCTION
FOOD PRODUCTS
FOOD SALES
FOOD SECURITY
FOOD STAPLES
FOOD SURPLUS
FOOD SURPLUSES
FOODS
GROUNDNUT
HIGHER INCIDENCE OF POVERTY
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD COMPOSITION
HOUSEHOLD CONSUMPTION
HOUSEHOLD EXPENDITURES
HOUSEHOLD HEAD
HOUSEHOLD INCOME
HOUSEHOLD INCOMES
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
HOUSING
INCOME
INCOME DISTRIBUTION
INCOME FROM CASH CROPS
INCOME LEVEL
INCOME LEVELS
INCOME ON FOOD
INCOME SOURCE
INCOME SOURCES
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LAND HOLDINGS
LATIN AMERICAN
LIVESTOCK INCOME
LIVING STANDARDS
LIVING STANDARDS SURVEY
LOW INCOME
LOW INCOMES
LOW-INCOME
LOWER INCOMES
MAIZE
MARKETING
PER CAPITA CONSUMPTION
PER CAPITA INCOMES
POLICY IMPLICATIONS
POLICY RESEARCH
POLITICAL ECONOMY
POOR
POOR COUNTRIES
POOR GROUPS
POOR HOUSEHOLD
POOR HOUSEHOLDS
POOR RURAL HOUSEHOLD
POORER HOUSEHOLDS
POVERTY ALLEVIATION
POVERTY ASSESSMENT
POVERTY IMPACT
POVERTY INDEX
POVERTY MEASURES
POVERTY REDUCTION
PRICE CHANGES
PURCHASES
QUESTIONNAIRE
REAL INCOMES
REGIONAL DIFFERENCES
RELATIVE PRICES
RESEARCH ASSISTANCE
RICE
RURAL
RURAL AREAS
RURAL COMMUNITY
RURAL DEVELOPMENT
RURAL ECONOMY
RURAL HOUSEHOLDS
RURAL INCOMES
RURAL POOR
RURAL POPULATIONS
RURAL POVERTY
RURAL SECTOR
SMALL FARMERS
SOURCES OF INCOME
SPICES
STAPLE FOODS
SUBSISTENCE
TARGETED TRANSFERS
URBAN AREAS
URBAN HOUSEHOLDS
URBAN POPULATION
URBAN POPULATIONS
VULNERABLE HOUSEHOLDS
WELFARE MONITORING
WHEAT
spellingShingle AGRICULTURAL ACTIVITIES
AGRICULTURAL ACTIVITY
AGRICULTURAL ECONOMICS
AGRICULTURAL INCOMES
AGRICULTURAL INPUTS
AGRICULTURAL POLICIES
AGRICULTURAL POLICY
AGRICULTURAL PRODUCERS
AGRICULTURAL PRODUCT
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTIVITY GROWTH
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL WAGE
AGRICULTURAL WAGES
AGRICULTURE
AVERAGE INCOMES
BENEFICIARIES
BUYER
CASH CROP INCOME
CASH CROPS
COMMODITIES
COMMODITY
CONSUMER
CONSUMER GOODS
CONSUMER PRICE INDEX
CONSUMERS
CONSUMPTION BASKET
CROP YIELDS
DATA SETS
DATES
DEVELOPING COUNTRIES
DEVELOPMENT ISSUES
DEVELOPMENT RESEARCH
ECONOMIC ACTIVITIES
ECONOMIC ACTIVITY
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC REVIEW
EMPIRICAL QUESTION
EXPENDITURE DATA
FARM ACTIVITIES
FARM ACTIVITY
FARM INCOMES
FARM PRODUCTIVITY
FARMERS
FARMING ACTIVITIES
FOOD AID
FOOD AID PROGRAMS
FOOD BASKET
FOOD BUYERS
FOOD CONSUMPTION
FOOD CROP
FOOD CROP PRODUCTION
FOOD CROPS
FOOD EXPENDITURES
FOOD INTAKE
FOOD ITEMS
FOOD NEEDS
FOOD OUTPUT
FOOD POLICY
FOOD PRICE
FOOD PRICES
FOOD PRODUCERS
FOOD PRODUCTION
FOOD PRODUCTS
FOOD SALES
FOOD SECURITY
FOOD STAPLES
FOOD SURPLUS
FOOD SURPLUSES
FOODS
GROUNDNUT
HIGHER INCIDENCE OF POVERTY
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD COMPOSITION
HOUSEHOLD CONSUMPTION
HOUSEHOLD EXPENDITURES
HOUSEHOLD HEAD
HOUSEHOLD INCOME
HOUSEHOLD INCOMES
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
HOUSING
INCOME
INCOME DISTRIBUTION
INCOME FROM CASH CROPS
INCOME LEVEL
INCOME LEVELS
INCOME ON FOOD
INCOME SOURCE
INCOME SOURCES
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LAND HOLDINGS
LATIN AMERICAN
LIVESTOCK INCOME
LIVING STANDARDS
LIVING STANDARDS SURVEY
LOW INCOME
LOW INCOMES
LOW-INCOME
LOWER INCOMES
MAIZE
MARKETING
PER CAPITA CONSUMPTION
PER CAPITA INCOMES
POLICY IMPLICATIONS
POLICY RESEARCH
POLITICAL ECONOMY
POOR
POOR COUNTRIES
POOR GROUPS
POOR HOUSEHOLD
POOR HOUSEHOLDS
POOR RURAL HOUSEHOLD
POORER HOUSEHOLDS
POVERTY ALLEVIATION
POVERTY ASSESSMENT
POVERTY IMPACT
POVERTY INDEX
POVERTY MEASURES
POVERTY REDUCTION
PRICE CHANGES
PURCHASES
QUESTIONNAIRE
REAL INCOMES
REGIONAL DIFFERENCES
RELATIVE PRICES
RESEARCH ASSISTANCE
RICE
RURAL
RURAL AREAS
RURAL COMMUNITY
RURAL DEVELOPMENT
RURAL ECONOMY
RURAL HOUSEHOLDS
RURAL INCOMES
RURAL POOR
RURAL POPULATIONS
RURAL POVERTY
RURAL SECTOR
SMALL FARMERS
SOURCES OF INCOME
SPICES
STAPLE FOODS
SUBSISTENCE
TARGETED TRANSFERS
URBAN AREAS
URBAN HOUSEHOLDS
URBAN POPULATION
URBAN POPULATIONS
VULNERABLE HOUSEHOLDS
WELFARE MONITORING
WHEAT
Aksoy, M. Ataman
Isik-Dikmelik, Aylin
Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries
relation Policy Research Working Paper No. 4642
description There is a general consensus that most of the poor in developing countries are net food buyers and food price increases are bad for the poor. This could be expected of urban poor, but it is also often attributed to the rural poor. Recent food price increases have increased the importance of this issue, and the possible policy responses to these price increases. This paper examines the characteristics of net food sellers and buyers in nine low-income countries. Although the largest share of poor households are found to be net food buyers, almost 50 percent of net food buyers are marginal net food buyers who would not be significantly affected by food price increases. Only three of the nine countries examined exhibited a substantial proportion of vulnerable households. The average incomes (as measured by expenditure) of net food buyers were found to be higher than net food sellers in eight of the nine countries examined. Thus, food price increases, ceteris paribus, would transfer income from generally higher income net food buyers to poorer net food sellers. The analysis also finds that the occupations and income sources of net sellers and buyers in rural areas are significantly different. In rural areas where food production is the main activity and where there are limited non-food activities, the incomes of net buyers might depend on the incomes and farming activities of net food sellers. These results suggest the need for reevaluation of the consensus on the impact of food prices on food needs. Further work on the regional differences, and more important, on the second order effects, are necessary to answer these questions more precisely. Only on the basis of further analysis can we start generating better policy responses.
format Publications & Research :: Policy Research Working Paper
author Aksoy, M. Ataman
Isik-Dikmelik, Aylin
author_facet Aksoy, M. Ataman
Isik-Dikmelik, Aylin
author_sort Aksoy, M. Ataman
title Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries
title_short Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries
title_full Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries
title_fullStr Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries
title_full_unstemmed Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries
title_sort are low food prices pro-poor? net food buyers and sellers in low-income countries
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/06/9496843/low-food-prices-pro-poor-net-food-buyers-sellers-low-income-countries
http://hdl.handle.net/10986/6660
_version_ 1764400868469243904
spelling okr-10986-66602021-04-23T14:02:32Z Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries Aksoy, M. Ataman Isik-Dikmelik, Aylin AGRICULTURAL ACTIVITIES AGRICULTURAL ACTIVITY AGRICULTURAL ECONOMICS AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL POLICIES AGRICULTURAL POLICY AGRICULTURAL PRODUCERS AGRICULTURAL PRODUCT AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURE AVERAGE INCOMES BENEFICIARIES BUYER CASH CROP INCOME CASH CROPS COMMODITIES COMMODITY CONSUMER CONSUMER GOODS CONSUMER PRICE INDEX CONSUMERS CONSUMPTION BASKET CROP YIELDS DATA SETS DATES DEVELOPING COUNTRIES DEVELOPMENT ISSUES DEVELOPMENT RESEARCH ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REVIEW EMPIRICAL QUESTION EXPENDITURE DATA FARM ACTIVITIES FARM ACTIVITY FARM INCOMES FARM PRODUCTIVITY FARMERS FARMING ACTIVITIES FOOD AID FOOD AID PROGRAMS FOOD BASKET FOOD BUYERS FOOD CONSUMPTION FOOD CROP FOOD CROP PRODUCTION FOOD CROPS FOOD EXPENDITURES FOOD INTAKE FOOD ITEMS FOOD NEEDS FOOD OUTPUT FOOD POLICY FOOD PRICE FOOD PRICES FOOD PRODUCERS FOOD PRODUCTION FOOD PRODUCTS FOOD SALES FOOD SECURITY FOOD STAPLES FOOD SURPLUS FOOD SURPLUSES FOODS GROUNDNUT HIGHER INCIDENCE OF POVERTY HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURES HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING INCOME INCOME DISTRIBUTION INCOME FROM CASH CROPS INCOME LEVEL INCOME LEVELS INCOME ON FOOD INCOME SOURCE INCOME SOURCES LABOR FORCE LABOR MARKET LABOR MARKETS LAND HOLDINGS LATIN AMERICAN LIVESTOCK INCOME LIVING STANDARDS LIVING STANDARDS SURVEY LOW INCOME LOW INCOMES LOW-INCOME LOWER INCOMES MAIZE MARKETING PER CAPITA CONSUMPTION PER CAPITA INCOMES POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POOR POOR COUNTRIES POOR GROUPS POOR HOUSEHOLD POOR HOUSEHOLDS POOR RURAL HOUSEHOLD POORER HOUSEHOLDS POVERTY ALLEVIATION POVERTY ASSESSMENT POVERTY IMPACT POVERTY INDEX POVERTY MEASURES POVERTY REDUCTION PRICE CHANGES PURCHASES QUESTIONNAIRE REAL INCOMES REGIONAL DIFFERENCES RELATIVE PRICES RESEARCH ASSISTANCE RICE RURAL RURAL AREAS RURAL COMMUNITY RURAL DEVELOPMENT RURAL ECONOMY RURAL HOUSEHOLDS RURAL INCOMES RURAL POOR RURAL POPULATIONS RURAL POVERTY RURAL SECTOR SMALL FARMERS SOURCES OF INCOME SPICES STAPLE FOODS SUBSISTENCE TARGETED TRANSFERS URBAN AREAS URBAN HOUSEHOLDS URBAN POPULATION URBAN POPULATIONS VULNERABLE HOUSEHOLDS WELFARE MONITORING WHEAT There is a general consensus that most of the poor in developing countries are net food buyers and food price increases are bad for the poor. This could be expected of urban poor, but it is also often attributed to the rural poor. Recent food price increases have increased the importance of this issue, and the possible policy responses to these price increases. This paper examines the characteristics of net food sellers and buyers in nine low-income countries. Although the largest share of poor households are found to be net food buyers, almost 50 percent of net food buyers are marginal net food buyers who would not be significantly affected by food price increases. Only three of the nine countries examined exhibited a substantial proportion of vulnerable households. The average incomes (as measured by expenditure) of net food buyers were found to be higher than net food sellers in eight of the nine countries examined. Thus, food price increases, ceteris paribus, would transfer income from generally higher income net food buyers to poorer net food sellers. The analysis also finds that the occupations and income sources of net sellers and buyers in rural areas are significantly different. In rural areas where food production is the main activity and where there are limited non-food activities, the incomes of net buyers might depend on the incomes and farming activities of net food sellers. These results suggest the need for reevaluation of the consensus on the impact of food prices on food needs. Further work on the regional differences, and more important, on the second order effects, are necessary to answer these questions more precisely. Only on the basis of further analysis can we start generating better policy responses. 2012-05-30T17:13:02Z 2012-05-30T17:13:02Z 2008-06 http://documents.worldbank.org/curated/en/2008/06/9496843/low-food-prices-pro-poor-net-food-buyers-sellers-low-income-countries http://hdl.handle.net/10986/6660 English Policy Research Working Paper No. 4642 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research