2 2. The rice economy of Madagascar Bart Minten, Marie-Hélène Dabat and Ziva Razafintsalama 2.1. Production 2.1.1. Historical context and trends Madagascar is a rice economy par excellence as documented by different studies and datasets. 2 For example, a commune census that was conducted in 2001 shows that the rice crop is stated to be the most important crop in the majority of the communes of the country, in terms of both area and value of production (Graphs 1 and 2). The only region where the rice crop is stated to be less important is in the eastern part of the country – where cash crops are a more important source of incomes - and the south where maize and cassava are the main crops. The latter region is characterized by a drier climate that makes rice production more problematic than in the rest of the country. 3 However, performance in the rice sector has been sluggish (World Bank, 2003a; Bockel, 2003). While the total production of rice increased from 1,9 million tons in 1970 to 3,0 million tons in 2004, the per capita production has fallen from 237 kg per year in 1970 to 179 kg per year in 2004 (FAO). Population growth, at an annual average of almost 3%, has thus mostly outpaced production growth (Graph 3). As the cultivated area in rice has increased on average by 0,6% per year and yields by 0,5% per year over the period as a whole, total production increased by 1,1%, i.e. significantly below population growth. Rice productivity in Madagascar started off on the same, or even better, footing as other countries, such as Mali and Indonesia (Graph 4). While yields stayed relatively stable in Madagascar, they increased significantly in these other two countries. Yields in Indonesia and Madagascar were similar in the beginning of the 1970s, but today yields in Indonesia exceed those in Madagascar by 2.5 tons per hectare. Yields in Mali were significantly lower than those in Madagascar in the beginning of the 1970s, but are now approximately the same as those in Madagascar. The rice production technologies used in Madagascar are still largely traditional. The Green Revolution that increased rice yields in other rice economies has largely bypassed Madagascar. Local rice production is characterized by high labor intensity and few external inputs. The adoption of improved agricultural technologies is low. Nonetheless, there have been some changes over the years (Table 1). For example, using statements based on recall questions to focus groups in a nationally representative commune survey in 2004, it is 2 See Bockel, 2002; Fraslin, 2002; IFPRI-FOFIFA, 1998; Le Bourdiec, 1974; Minten and Zeller, 2000; Pryor, 1990; Razafindravonona et al., 2001; Roubaud, 1997; UPDR-FAO, 2000; World Bank, 2003; Dorosh et al., 1990; Dorosh, 1994; Dorosh et al., 2003. 3 Compared to ten years earlier, little change has been noted: the number of communes that reported rice as their main crop in value terms decreased by about 8%. However, this is partly explained by the high prices of cloves and vanilla in the year 2001.