On food quality in domestic markets of developing economies
AbstractFood quality has become an important determinant of success in global food trade and growers for international markets have to continuously adjust to buyers’ requirements. It is however not clear to what extent there is a demand for food quality - and how much buyers are willing to pay for it - in the domestic food markets of developing economies. Based on unique price and trader data from domestic food markets in a poor country in Africa (Madagascar) and an emerging economy in Asia (India), we compare quality and quality’s pricing. We find significantly better quality and higher quality premia (using revealed as well as stated preference methods) in the richer country, probably leading to an impetus for the development of modern market channels in this economy.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51700.
Date of creation: 2009
Date of revision:
food quality; quality premia; development; Agricultural and Food Policy; Q12; Q13; L15;
Other versions of this item:
- Anneleen Vandeplas & Bart Minten, 2011. "Food quality in domestic markets of developing economies:A comparative study of two countries," LICOS Discussion Papers 28911, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
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