Organizational and institutional environment in wheat production chain in Mozambique

Abstract

Wheat’s production chain is one of the sectors that have received a lot of attention not only by the Mozambican government, but also by its national and international partners alike. This is due to the interest of the government and its partners to raise production levels and as such, lower the need of importing these goods in the coming years. Due to efforts from Mozambican government to elevate production levels of wheat, the objectives of this research are to analyze the organizational and institutional effects on the development of Mozambican wheat production chain. The foundation of this project consists mainly of a new institutional economy as this institution recognizes the economic development of certain institutions. The primary and secondary data have been collected through interviews conducted with wheat producers and members of research institutes in the agrarian field in Mozambique. Some of the data have also been collected using the internet. Through the data collected and compiled, it was discovered that Mozambique in fact does not have specific policies concerned with the production of wheat, but rather information related to this exact matter are found in a greater policy which concerns itself with the promotion of agriculture itself. Therefore, the data indicates that concerning the production of wheat, there have been certain failures in the process of commercializing it, such as the inexistence of formal contracts, as well as failure in compliance with the few informal contracts which are in place. There has also been poor negotiation of pricing by the producers themselves, thus the need for an intervention in the matter by the Mozambican government.