Full Length Research Paper
César Benites Mário Zidora1,
Cleyzer Adrian da Cunha2,
Alcido Elenor Wander3*
and Odilon José de Oliveira
Neto4
Abstract
This study aims at analysing
the hedging strategy in the
marketing of maize grain in
the rural areas of
Mozambique. The farmers
living in the rural areas of
Mozambique that engaged in
the business of cultivation,
production and marketing of
corn as their main rural
activity and a means of
ensuring subsistence were
identified as the target
group. The surveyed
communities are located in
three provinces of
Mozambique, they are:
Maputo, Gaza and Manica.
Questionnaires with key
questions relating to the
central objective of the
work were designed and
distributed for data
collection to farmers
totalling 107 in number,
cutting across the three
provinces of consideration.
A qualitative and
quantitative approach that
is both exploratory and
descriptive in nature was
used in the research. In
addition to the primary data
obtained through the
questionnaires, secondary
sources of information such
as thesis, dissertations,
and scientific articles
relating to the focus of
this study were harnessed.
Results from the research
showed that marketing plays
a leading role in the social
life and welfare of the
Mozambicans. Majority of the
producers claimed to use no
risk management strategy in
marketing due to lack of
information and thus,
becoming vulnerable to
prices from the buyers.
While a small number gave
credence to long term
experience in the production
and marketing business, and
have adopted certain
strategies for managing
price risk, such as the use
of fixed-term contracts,
most of them being informal
agreements and sometimes not
compensatory to price risk
in the management context.
Among other socioeconomic
variables that had
statistically significant
effect on influencing the
choice and use of hedging
strategy to manage price
risk in the marketing of
corn, are: schooling,
production time, membership
in a cooperative and
satisfaction financial
return.
Key words: Corn
marketing, hedging
strategies, and farmers. JEL
Codes: D40, D47, O13.
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