Market Channel and Heterogeneous Storage Behavior in Response to Multiple Risks: The Case of Nigerian Maize Traders

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July 17, 2023 - Daye Kwon, Lenis Saweda O. Liverpool-Tasie, and Thomas Reardon<reardon@msu.edu>

Key Findings

  • Nigerian maize wholesale traders’ decisions to store maize and apply chemicals and/or non-chemicals to stored maize are influenced by their choice of primary market channel.
  • Temperature fluctuation affects the probability of storage in opposite ways. For traders mainly selling to the modern channel, higher temperature variability increases the likelihood of storing maize, whereas for those selling to the traditional channel, it reduces the likelihood of storing maize.
  • Previous experience with climate-induced shocks has no effect on the storage practices of traders selling to modern buyers, but is positively associated with the use of chemicals among traders selling to traditional buyers.
  • Taking into account the differential effects of risks on traders selling to different market channels is crucial to implement policies aimed at mitigating the impact of risks and building a more resilient maize value chain in Nigeria.

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