THE ANDEAN PRICE BAND SYSTEM: EFFECTS ON PRICES, PROTECTION AND PRODUCER WELFARE



Table 3. Welfare Effects of the Andean Price Band System: Changes from the Pre-APBS Period to the APBS Period for Selected
Products in Colombia, Ecuador and Venezuela

Product

Country

Share of AC

Production (%)
_____________
(1)

Risk Benefits
(2)

Transfer
Benefits
(3)

Net Producer
Benefits
(4)

Maize

Colombia

40%

4.84%

-31.39%

-26.54%

Ecuador

21%

-0.44%

5.74%

5.30%

Venezuela

39%

-7.89%

-0.45%

-8.33%

Weighted Average

-1.24%

-11.59%

________-12.83%

Rice

Colombia

50%

0.79%

7.55%

-6.76%

Ecuador

31%

0.90%

-5.63%

-4.73%

Venezuela

19%

0.87%

-4.30%

-3.44%

Weighted Average

0.84%

-6.34%

_________-5.50%

Sugar

Colombia

70%

2.36%

-53.49%

-51.13%

Ecuador

12%

0.32%

5.29%

5.60%

Venezuela

18%

-0.30%

-24.42%

-24.72%

Weighted Average

1.62%

-41.10%

________39.47%

Milk

Colombia

60%

-3.24%

8.82%

5.58%

Ecuador

22%

-0.27%

-8.23%

-8.51%

Venezuela

18%

1.86%

-36.65%

-34.79%

Weighted Average

-1.65%

-3.26%

-4.91%



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