· 2024
When quality attributes of a product are not directly observable, third-party certification (TPC) enables buyers to purchase the quality they are most interested in and reward sellers accordingly. Beyond product characteristics, buyers’ use of TPC services also depends on market conditions. We study the introduction of TPC in typical smallholder-based agriculture value chains of low-income countries, where traders must aggregate products from many small-scale producers before selling in bulk to downstream processors, and where introduction of TPC services has oftentimes failed. We develop a theoretical model identifying how different market conditions affect traders’ choice to purchase quality-certified output from farmers. Using a purposefully designed lab-in-the-field experiment with rural wheat traders in Ethiopia, we find mixed support for the model’s prediction: traders’ willingness to specialize in certified output does increase with the share of certified wheat in the market, and this effect is stronger in larger markets. It, however, does not decrease with the quality of uncertified wheat in the market. We further analyze conditions where traders deviate from the theoretically optimal behavior and discuss implications for future research and public policies seeking to promote TPC in smallholder-based food value-chains.
We study decision-making in dairy farming households in Senegal and investigate respondents’ perceptions of why a particular person made the decision. Using vignettes, we ask respondents how similar they are to five types of households. We analyze how the identity of the decision-maker and the rationale for decision-making are related to milk production, hemoglobin levels among children, and satisfaction with decisions. We find that while male dictators achieve better outcomes than most decision-making structures, households in which husbands (wives) decide because they are most informed produce more milk than households in which husbands (wives) decide because they are dictators.
Since 2014, Digital Green and the Government of Ethiopia have been piloting a video-mediated approach to agricultural extension provision. The approach aims to increase the growth rate of yields and output for major food staples by encouraging farmers to adopt productivity-enhancing agricultural technologies and practices. The video-mediated extension approach is highlighted by three integrated components: production of short, localized video content, screening videos in group sessions facilitated by extension agents, and verification of the uptake of the target technologies and practices. A key tenet of this approach is its ability to increase adoption rates at a relatively low cost per farmer.
We show analytically and empirically that non-classical measurement errors in the two key variables in a hypothesized relationship can bias the estimated relationship between them in any direction. Furthermore, if these measurement errors are correlated, correcting for either one alone can aggravate bias in the parameter estimate of interest relative to ignoring mismeasurement in both variables, a ‘second best’ result with implications for a broad class of economic phenomena of policy interest. We illustrate these results empirically by demonstrating the implications of mismeasured agricultural output and plot size for the long-debated (inverse) relationship between size and productivity.
We examine productive inefficiencies in dairy farming in pastoralist house-holds in Northern Senegal, and using laboratory games, measure the relation-ship between spousal cooperation and productive inefficiency directly. In house-holds that behave less cooperatively in the games, cows owned by men produce10.6% more milk per day than cows owned by women, a gap that remainslarge and statistically significant after controlling for household, owner, andcow characteristics. Our results suggest that frictions between spouses mayindeed explain gender gaps in productivity, and support the use of lab-basedmeasures of household cooperation to complement survey data in explainingcollective behaviors.
The application of digital tools to agricultural extension and advisory services has attracted considerable attention in recent years. Among the many advantages it offers is the ability to capture and analyze large amounts of data on farmers, their farms, crops, and fields; and the choices they make about input use, technologies, management practices, and marketing.
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.
Health-related incentives to reward effort or commitment are commonplace in many professional contracts throughout the world. Typically absent from small-scale agriculture in poor countries, such incentives may help overcome both health issues for remote rural families and supply issues for firms. Using a randomized control design, we investigate the impact of adding a micronutrient-fortified product in contracts between a Senegalese dairy processing factory and its seminomadic milk suppliers. Findings show significant increases in frequency of delivery but only limited impacts on total milk delivered. These impacts are time sensitive and limited mostly to households where women are more in control of milk contracts.
Wanyama, Fredrick; Poulton, Colin; Markelova, Helen; Dutilly-Diane, Celine; Hendrikse, George; Bijman, Jos; Francesconi, Gian Nicola; Bernard, Tanguy; Cook, Michael; Badiane, Ousmane and Wouterse, Fleur Stephanie. 2014. Collective action among african smallholders: Trends and lessons for future development strategies. WCAO Thematic Research Note 5. Washington, D.C.: International Food Policy Research Institute (IFPRI)