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Risk analysis of new maize technology in Zaire: a portfolio approach
Author(s) -
Ames Glenn C.W.,
Reid Donald W.,
Hsiou LiFang
Publication year - 1993
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1993.tb00268.x
Subject(s) - staple food , portfolio , production (economics) , context (archaeology) , cropping , yield (engineering) , agricultural science , agriculture , agricultural machinery , economics , business , agricultural economics , agronomy , geography , environmental science , biology , financial economics , materials science , archaeology , metallurgy , macroeconomics
Risk associated with the adoption of new maize technology and the impact of mandatory cotton production on traditional farmers in the Kasai Oriental Region of Zaire are evaluated within a portfolio context using a quadratic programming model. Seasonal net returns for farm plans including four levels of maize technology in combination with staple food crops are evaluated, with and without mandatory cotton production. The results indicate that cropping systems that include new maize technology are risk‐efficient relative to local maize varieties while mandatory cotton production is not risk‐efficient at the prevalent price and yield levels in the farming system.