Most important commodity                                   Second most important commodity

          trade flows: Maize                                                           trade flows: Wheat

The final step in the process of identifying the external trade patterns is to

summarize the information gathered during this process.  The questions in

 step

2f

 should be written out, and then discussed with  major traders and other key

informants (e.g., the World Food Programme (WFP) in a country and discuss

the nature of trade for specific commodities.

In the example from Zambia, there are some important aspects of the external trade pattern

for the country's main staple food that are noteworthy for price  analysis.  First, in deficit

years maize usually comes from regional markets, especially South Africa and Zimbabwe.

In years that the region has had a maize shortfall, maize has come from as far away as

Argentina.  Wheat is imported every year (there is a structural deficit), and is mostly

purchased from within the region (primarily South Africa).  If there is a deficit in the region

wheat is sometimes purchased in the United States.

3.2.5 Historical and current marketing policies

The identification of agricultural marketing and trade policies (and their enforcement) is also

important for price analysis.  Policies can either enable or constrain the functions of the

marketing system.  The result of these policies on observed prices is that they promote

competitive trade or introduce market distortions.  Policies that will be examined are

controlled prices, the existence of cereal marketing boards, and those that affect the

assembly, transportation, storage, and processing of cereals.

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