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Selling at the Farmgate or Traveling to Market

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Author Info
Marcel Fafchamps
Ruth Vargas Hill

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Abstract

Using detailed survey data from Uganda, this article examines whether coffee producers sell to itinerant traders or directly to markets, where they can get a higher price but must incur a transport cost. We find that selling to the market is more likely when the quantity sold is large and the market is close by. Wealthy farmers are less likely to sell to the market, possibly because the shadow value of their time is higher. But if they have a large quantity of coffee for sale, they are more likely to sell it to the market. They are also more likely to travel to a distant market. These findings are consistent with their better ability to pay for public transportation. We find no evidence that the decision to sell at the farmgate is driven by a self-control motive. Copyright 2005 American Agricultural Economics Association.

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Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 87 (2005)
Issue (Month): 3 (08)
Pages: 717-734
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Handle: RePEc:bla:ajagec:v:87:y:2005:i:3:p:717-734

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  1. Takeshima, Hiroyuki, 2008. "Behavior of subsistence producers in response to technological change- The elasticity of cassava production and home consumption in Benin," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6108, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Shilpi, Forhad & Umali-Deininger, Dina, 2007. "Where to sell ? market facilities and agricultural marketing," Policy Research Working Paper Series 4455, The World Bank. [Downloadable!]
  3. Edmeades, Svetlana, 2005. "A Hedonic Perspective to Estimating a Marginal Value Function for a Subsistence Crop," 2005 Annual meeting, July 24-27, Providence, RI 19500, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Bussolo, Maurizio & Godart, Olivier & Lay, Jann & Thiele, Rainer, 2006. "The impact of commodity price changes on rural households : the case of coffee in Uganda," Policy Research Working Paper Series 4088, The World Bank. [Downloadable!]
  5. Jacoby, Hanan G. & Minten, Bart, 2008. "On measuring the benefits of lower transport costs," Policy Research Working Paper Series 4484, The World Bank. [Downloadable!]
    Other versions:
  6. Bussolo, Maurizio & Godart, Olivier & Lay, Jann & Thiele, Rainer, 2006. "The Impact of Coffee Price Changes on Rural Households in Uganda," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25345, International Association of Agricultural Economists. [Downloadable!]
    Other versions:
  7. Zeller, Dirk & Booth, Shawn & Pauly, Daniel, 2006. "Fisheries Contributions to the Gross Domestic Product: Understanding Small-scale Fisheries in the Pacific," Marine Resource Economics, Marine Resources Foundation, vol. 21(4). [Downloadable!]
  8. Labonne, Julien & Chase, Robert S., 2009. "The power of information : the impact of mobile phones on farmers'welfare in the Philippines," Policy Research Working Paper Series 4996, The World Bank. [Downloadable!]
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