Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia

Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia

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  • Author: Do Nascimento Miguel, Jérémy
  • Publisher: Intl Food Policy Res Inst
  • ISBN:
  • Category : Political Science
  • Languages : en
  • Pages : 66

In many Sub-Saharan countries, farmers cannot meet the growing urban demand for higher quality products, leading to increasing dependency on imports. While the literature has focused on production-side constraints to enhancing smallholder farmers’ output quality, there is scarce evidence of market-side constraints. Using a unique sample of 60 wheat markets in Ethiopia, I examine the relationship between the price obtained by farmers and the quality supplied. Using objective and precise measures of observable (impurity content) and unobservable (flour extraction rate and moisture level) quality attributes, no evidence was found of a strong correlation between the two, suggesting that observable attributes cannot serve as proxies for unobservable ones. Transaction prices further reflect this, indicating that, markets only reward quality attributes that are observable at no cost. However, these results hide cross-market heterogeneity. Observable quality attributes are better rewarded in larger and more competitive markets, while unobservable attributes are rewarded in the presence of grain millers and/or farmer cooperatives on the market site. Both regression and machine learning approaches support these findings.


Returns to Quality in Rural Agricultural Markets

Returns to Quality in Rural Agricultural Markets

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  • Author: Jérémy Do Nascimento Miguel
  • Publisher:
  • ISBN:
  • Category :
  • Languages : en
  • Pages : 0

In many Sub-Saharan countries, farmers cannot meet the growing urban demand for higher quality products. While the literature has focused on production-side constraints to enhancing smallholder farmers' output quality, there is scarce evidence of market-side constraints. Using a sample of 60 wheat markets in Ethiopia, I assess whether farmers received a price premium for supplying higher quality outputs. I exploit a unique feature of the data which precisely measures observable and unobservable quality attributes, and relate them to transaction prices. I find that observable attributes cannot serve as proxies for unobservable ones. Transaction prices further reflect this, indicating that, markets only reward quality attributes observable at no cost. However, these results hide cross-market heterogeneity. Observable quality attributes are better rewarded in larger and more competitive markets, while unobservable attributes are rewarded in the presence of grain millers and/or farmer cooperatives. Both regression and machine learning approaches support these findings.


Return to Quality in Rural Agricultural Markets

Return to Quality in Rural Agricultural Markets

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  • Author: Jérémy Do Nascimento Miguel
  • Publisher:
  • ISBN:
  • Category :
  • Languages : en
  • Pages : 0


Rice Green Revolution in Sub-Saharan Africa

Rice Green Revolution in Sub-Saharan Africa

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  • Author: Keijiro Otsuka
  • Publisher: Springer Nature
  • ISBN: 9811980462
  • Category : Business & Economics
  • Languages : en
  • Pages : 312

This open access book seeks effective strategy to realize a rice Green Revolution in sub-Saharan Africa based on more than ten years of research team’s inquiries into determinants and consequences of new technology adoption in rice farming in seven countries in this region. Rigorous statistical analyses are carried out by using valuable household data of rice farmers. The book is actually sequel to the two earlier books on the same subject published by Springer and edited by K. Otsuka and D.F. Larson, An African Green Revolution published in 2013 and In Pursuit of an African Green Revolution in 2016. The main message of the first book was that rice is the most promising cereal crop in SSA because of the high transferability of Asian rice technology, whereas that of the second book was that rice cultivation training programs are effective in significantly increasing rice yield in SSA. This third book has wider coverage in terms of topics, study periods, and study sites. It continues to show the significant impacts of rice cultivation training on productivity and newly demonstrates the high sustainability of the productivity impact of the training and the existence of spillover effects from trainees to other farmers by using panel data. We newly assess the important role of mechanization in intensification of rice farming, high returns to large-scale irrigation schemes, and the critical role of rice millers in improving the quality of milled rice. Based on these studies, this book provides clear pathways toward full-fledged Green Revolution in rice farming in sub-Saharan Africa.


Farmers’ quality assessment of their crops and its impact on commercialization behavior: A field experiment in Ethiopia

Farmers’ quality assessment of their crops and its impact on commercialization behavior: A field experiment in Ethiopia

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  • Author: Abate, Gashaw T.
  • Publisher: Intl Food Policy Res Inst
  • ISBN:
  • Category : Political Science
  • Languages : en
  • Pages : 44

Adoption of quality-enhancing technologies is often driven largely by farmers’ expected returns from these technologies. Without proper grades, standards, and certification systems, however, farmers may remain uncertain about the actual financial return associated with their quality-enhancing investments. This report summarizes the outcomes of a short video-based randomized training intervention on wheat quality measurement and collective marketing among 15,000 wheat farmers in Ethiopia. Our results suggest that the intervention led to significant changes in farmers’ commercialization behaviors—namely, it prompted farmers to adopt behaviors geared toward assessing their wheat’s quality using easily implementable test-weight measures, assessing the accuracy of the equipment used by buyers in their kebeles (scales, in particular), and contacting more than one buyer before concluding a sale. The training also led to improvements in share of output sold, price received, and collective marketing, albeit with important limitations. First, farmers who measured their wheat quality received a higher price, but only if their wheat was of higher quality. Second, farmers who found that their wheat was of higher quality were more reluctant to aggregate their wheat (that is, sell their products through local cooperatives) than those who found that their wheat was of lower quality. Lastly, the training intervention led to better use of fertilizer in the following season. Our discovery that a short training intervention can significantly change farmers’ marketing and production behavior should encourage the development of further interventions aimed at enhancing farmers’ adoption of improved technologies and commercialization.


Seed Trade in Rural Markets

Seed Trade in Rural Markets

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  • Author: Leslie Lipper
  • Publisher: Earthscan
  • ISBN: 1844077845
  • Category : Business & Economics
  • Languages : en
  • Pages : 257

First Published in 2009. Routledge is an imprint of Taylor & Francis, an informa company.


World Agricultural Economics and Rural Sociology Abstracts

World Agricultural Economics and Rural Sociology Abstracts

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  • Author:
  • Publisher:
  • ISBN:
  • Category : Agriculture
  • Languages : en
  • Pages : 682


Impact of irrigation on poverty and environment in Ethiopia: draft proceedings of the symposium and exhibition, Addis Ababa, Ethiopia, 27-29 November 2007

Impact of irrigation on poverty and environment in Ethiopia: draft proceedings of the symposium and exhibition, Addis Ababa, Ethiopia, 27-29 November 2007

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  • Author: Makonnen Loulseged
  • Publisher: IWMI
  • ISBN:
  • Category :
  • Languages : en
  • Pages : 483


Bulletin of the Atomic Scientists

Bulletin of the Atomic Scientists

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  • Author:
  • Publisher:
  • ISBN:
  • Category :
  • Languages : en
  • Pages : 64


The Exchange

The Exchange

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  • Author:
  • Publisher:
  • ISBN:
  • Category : Agriculture
  • Languages : en
  • Pages : 744