Misperceived quality: fertilizer in Tanzania

Fertilizer use remains below recommended rates in most of Sub-Saharan Africa, contributing to low crop yields and poverty. We explore the role of fertilizer quality. We interviewed fertilizer sellers in an important agricultural region in Tanzania and sampled their fertilizer to establish that the n...

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Bibliographic Details
Main Authors: Michelson, H., Fairbairn, A., Ellison, B., Maertens, A., Manyong, Victor
Format: Journal Article
Language:Inglés
Published: Elsevier 2021
Subjects:
Online Access:https://hdl.handle.net/10568/114382
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author Michelson, H.
Fairbairn, A.
Ellison, B.
Maertens, A.
Manyong, Victor
author_browse Ellison, B.
Fairbairn, A.
Maertens, A.
Manyong, Victor
Michelson, H.
author_facet Michelson, H.
Fairbairn, A.
Ellison, B.
Maertens, A.
Manyong, Victor
author_sort Michelson, H.
collection Repository of Agricultural Research Outputs (CGSpace)
description Fertilizer use remains below recommended rates in most of Sub-Saharan Africa, contributing to low crop yields and poverty. We explore the role of fertilizer quality. We interviewed fertilizer sellers in an important agricultural region in Tanzania and sampled their fertilizer to establish that the nutrient content of fertilizers is good, meeting industry standards. However, we find farmers’ beliefs to be inconsistent with this reality. Beliefs about adulteration push down farmer willingness-to-pay for fertilizer; with farmers willing to pay more if quality is verified. In addition, we find some evidence of a quality inference problem: many fertilizers have degraded appearance, and farmers appear to rely on these observable attributes to (incorrectly) assess unobservable nutrient content. Market prices reflect neither nutrient content nor degradation in appearance, even in competitive markets. Our results suggest the existence of an equilibrium where farmer beliefs about fertilizer are inconsistent with the truth, and seller incentives to invest to alter beliefs are limited, motivating future research into the origins and persistence of such an equilibrium.
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spelling CGSpace1143822023-12-08T19:36:04Z Misperceived quality: fertilizer in Tanzania Michelson, H. Fairbairn, A. Ellison, B. Maertens, A. Manyong, Victor farmers markets technology adoption fertilizers subsaharan africa Fertilizer use remains below recommended rates in most of Sub-Saharan Africa, contributing to low crop yields and poverty. We explore the role of fertilizer quality. We interviewed fertilizer sellers in an important agricultural region in Tanzania and sampled their fertilizer to establish that the nutrient content of fertilizers is good, meeting industry standards. However, we find farmers’ beliefs to be inconsistent with this reality. Beliefs about adulteration push down farmer willingness-to-pay for fertilizer; with farmers willing to pay more if quality is verified. In addition, we find some evidence of a quality inference problem: many fertilizers have degraded appearance, and farmers appear to rely on these observable attributes to (incorrectly) assess unobservable nutrient content. Market prices reflect neither nutrient content nor degradation in appearance, even in competitive markets. Our results suggest the existence of an equilibrium where farmer beliefs about fertilizer are inconsistent with the truth, and seller incentives to invest to alter beliefs are limited, motivating future research into the origins and persistence of such an equilibrium. 2021-01 2021-07-26T10:21:17Z 2021-07-26T10:21:17Z Journal Article https://hdl.handle.net/10568/114382 en Limited Access Elsevier Michelson, H., Fairbairn, A., Ellison, B., Maertens, A. & Manyong, V. (2021). Misperceived quality: fertilizer in Tanzania. Journal of Development Economics, 148, 102579: 1-21.
spellingShingle farmers
markets
technology
adoption
fertilizers
subsaharan africa
Michelson, H.
Fairbairn, A.
Ellison, B.
Maertens, A.
Manyong, Victor
Misperceived quality: fertilizer in Tanzania
title Misperceived quality: fertilizer in Tanzania
title_full Misperceived quality: fertilizer in Tanzania
title_fullStr Misperceived quality: fertilizer in Tanzania
title_full_unstemmed Misperceived quality: fertilizer in Tanzania
title_short Misperceived quality: fertilizer in Tanzania
title_sort misperceived quality fertilizer in tanzania
topic farmers
markets
technology
adoption
fertilizers
subsaharan africa
url https://hdl.handle.net/10568/114382
work_keys_str_mv AT michelsonh misperceivedqualityfertilizerintanzania
AT fairbairna misperceivedqualityfertilizerintanzania
AT ellisonb misperceivedqualityfertilizerintanzania
AT maertensa misperceivedqualityfertilizerintanzania
AT manyongvictor misperceivedqualityfertilizerintanzania