Economic policy and technology determinants of the comparative advantage of wheat production in Sudan
Relative profitability and the domestic resource cost (DRC)methodology are used to evaluate the comparative advantage of irrigated wheat versus cotton in Sudan's Gezira Scheme. Relative profitability analysis reveals the high tax paid by Gezira farmers prior to 1992 through an overvalued exchange rate. Results of the DRC analysis indicate that at 1990 prices it is more efficient to produce wheat using a full package of improved technologies than to produce long- and medium-staple cotton. However, at the 1992 trend and actual prices, cotton dominates all wheat technologies. Cotton dominates the full package of improved wheat technologies until the world price of wheat is 11% higher than trend, at which point full package wheat becomes more efficient. However, as wheat prices currently are below their long-run average, and since average yields in Gezira are much lower than potential yields under the full package of technology, at present it may not be economically efficient to expand wheat production at the expense of cotton. Before more land is removed from cotton and sown to wheat, priority should be given to closing the gap between farmers' current and potential wheat yields. Input procurement and delivery systems should be liberalized for more efficient and timely utilization of inputs. Research recommendations should be refined to suit the needs of different locations and farmer groups. It is also important for Sudan to devote more resources to improving the quality and marketing of its cotton crop, given the high potential gain in cotton export prices from higher quality lint.
| Main Authors: | , |
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| Format: | Book biblioteca |
| Language: | English |
| Published: |
CIMMYT
1993
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| Subjects: | AGRICULTURAL SCIENCES AND BIOTECHNOLOGY, WHEAT, FOOD PRODUCTION, ECONOMICS, APPROPRIATE TECHNOLOGY, PRODUCTION FACTORS, |
| Online Access: | http://hdl.handle.net/10883/896 |
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