Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi

Small farmers and traders often lack the market information they need to earn the most from their crop sales. This paper analyzes the effects of an action research experiment in central Malawi, in which four groups of smallholder farmers were provided with maize and soybean price information from a...

Descripción completa

Detalles Bibliográficos
Autores principales: Ochieng, Dennis O., Botha, Rosemary, Baulch, Bob
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2020
Materias:
Acceso en línea:https://hdl.handle.net/10568/143750
_version_ 1855541427180666880
author Ochieng, Dennis O.
Botha, Rosemary
Baulch, Bob
author_browse Baulch, Bob
Botha, Rosemary
Ochieng, Dennis O.
author_facet Ochieng, Dennis O.
Botha, Rosemary
Baulch, Bob
author_sort Ochieng, Dennis O.
collection Repository of Agricultural Research Outputs (CGSpace)
description Small farmers and traders often lack the market information they need to earn the most from their crop sales. This paper analyzes the effects of an action research experiment in central Malawi, in which four groups of smallholder farmers were provided with maize and soybean price information from a local commodity exchange during the 2019 marketing season, while four other groups of smallholder farmers did not receive this information. Using data from a panel survey of 399 farmers and 78 traders conducted before and after the main marketing season and using kernel propensity score matching approach to account for possible differences between the treated and non-treated farmers, we estimate the effects of the intervention on a number of outcome indicators. A before versus after analysis was also employed to evaluate changes in traders’ marketing outcomes. We find positive but statistically insignificant effects on maize and soybean selling prices, sales through structured markets and levels of commercialization after the intervention. We also find a negative and statistically significant effect on the quantity of maize sold by farmers, suggesting paradoxically that providing farmers with price information reduced their sales volumes. The proportion of traders aware of structured markets and their share of sales through structured markets also increased significantly after the intervention. The quantity of maize sold by traders as well as the selling prices for maize and soy-bean also increased significantly, although this may be due to factors other than the intervention. The study concludes that provision of price information alone is not enough to facilitate small farmers’ and traders’ use of structured markets. Greater effort is needed to sensitize farmers and traders on the quality and quantity requirements as well as the operations of structured markets.
format Artículo preliminar
id CGSpace143750
institution CGIAR Consortium
language Inglés
publishDate 2020
publishDateRange 2020
publishDateSort 2020
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1437502025-11-06T07:40:58Z Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi Ochieng, Dennis O. Botha, Rosemary Baulch, Bob farmers maize soybeans markets retail prices food prices information prices Small farmers and traders often lack the market information they need to earn the most from their crop sales. This paper analyzes the effects of an action research experiment in central Malawi, in which four groups of smallholder farmers were provided with maize and soybean price information from a local commodity exchange during the 2019 marketing season, while four other groups of smallholder farmers did not receive this information. Using data from a panel survey of 399 farmers and 78 traders conducted before and after the main marketing season and using kernel propensity score matching approach to account for possible differences between the treated and non-treated farmers, we estimate the effects of the intervention on a number of outcome indicators. A before versus after analysis was also employed to evaluate changes in traders’ marketing outcomes. We find positive but statistically insignificant effects on maize and soybean selling prices, sales through structured markets and levels of commercialization after the intervention. We also find a negative and statistically significant effect on the quantity of maize sold by farmers, suggesting paradoxically that providing farmers with price information reduced their sales volumes. The proportion of traders aware of structured markets and their share of sales through structured markets also increased significantly after the intervention. The quantity of maize sold by traders as well as the selling prices for maize and soy-bean also increased significantly, although this may be due to factors other than the intervention. The study concludes that provision of price information alone is not enough to facilitate small farmers’ and traders’ use of structured markets. Greater effort is needed to sensitize farmers and traders on the quality and quantity requirements as well as the operations of structured markets. 2020-02-01 2024-05-22T12:16:35Z 2024-05-22T12:16:35Z Working Paper https://hdl.handle.net/10568/143750 en https://doi.org/10.2499/p15738coll2.133613 Open Access application/pdf International Food Policy Research Institute Ochieng, Dennis O.; Botha, Rosemary; and Baulch, Bob. 2020. Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi. MaSSP Working Paper 33. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.133649.
spellingShingle farmers
maize
soybeans
markets
retail prices
food prices
information
prices
Ochieng, Dennis O.
Botha, Rosemary
Baulch, Bob
Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi
title Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi
title_full Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi
title_fullStr Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi
title_full_unstemmed Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi
title_short Market information and access to structured markets by small farmers and traders: Evidence from an action research experiment in central Malawi
title_sort market information and access to structured markets by small farmers and traders evidence from an action research experiment in central malawi
topic farmers
maize
soybeans
markets
retail prices
food prices
information
prices
url https://hdl.handle.net/10568/143750
work_keys_str_mv AT ochiengdenniso marketinformationandaccesstostructuredmarketsbysmallfarmersandtradersevidencefromanactionresearchexperimentincentralmalawi
AT botharosemary marketinformationandaccesstostructuredmarketsbysmallfarmersandtradersevidencefromanactionresearchexperimentincentralmalawi
AT baulchbob marketinformationandaccesstostructuredmarketsbysmallfarmersandtradersevidencefromanactionresearchexperimentincentralmalawi