Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia
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-s...
| Autor principal: | |
|---|---|
| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2022
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/140858 |
| _version_ | 1855527185552506880 |
|---|---|
| author | Do Nascimento Miguel, Jérémy |
| author_browse | Do Nascimento Miguel, Jérémy |
| author_facet | Do Nascimento Miguel, Jérémy |
| author_sort | Do Nascimento Miguel, Jérémy |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | 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. |
| format | Artículo preliminar |
| id | CGSpace140858 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1408582025-12-02T21:02:52Z Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia Do Nascimento Miguel, Jérémy models crops quality agriculture smallholders markets wheat rural areas prices 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. 2022-02-09 2024-04-12T13:36:46Z 2024-04-12T13:36:46Z Working Paper https://hdl.handle.net/10568/140858 en https://doi.org/10.1093/erae/jbab018 https://doi.org/10.1093/ajae/aax033 Open Access application/pdf International Food Policy Research Institute Do Nascimento Miguel, Jérémy. 2022. Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia. IFPRI Discussion Paper 2101. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134984. |
| spellingShingle | models crops quality agriculture smallholders markets wheat rural areas prices Do Nascimento Miguel, Jérémy Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia |
| title | Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia |
| title_full | Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia |
| title_fullStr | Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia |
| title_full_unstemmed | Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia |
| title_short | Return to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia |
| title_sort | return to quality in rural agricultural markets evidence from wheat markets in ethiopia |
| topic | models crops quality agriculture smallholders markets wheat rural areas prices |
| url | https://hdl.handle.net/10568/140858 |
| work_keys_str_mv | AT donascimentomigueljeremy returntoqualityinruralagriculturalmarketsevidencefromwheatmarketsinethiopia |