Food quality in domestic markets of developing economies:A comparative study of two countries
AbstractFood quality has become an important determinant of success in global food trade and growers for international markets have to continuously adjust to buyersâ€™ 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 domestic food markets of developing economies. Based on unique comparable price and trader data in a poor country in Africa (Madagascar) and an emerging economy in Asia (India), we compare food quality and qualityâ€™s pricing. We find significantly better quality and higher quality premiums (using revealed as well as stated preference methods) in India than in Madagascar. We explain these observed differences through a simple theoretical model, solely based on large average income gaps between the two countries.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 28911.
Date of creation: 2011
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food quality; quality premiums; development;
Other versions of this item:
- Vandeplas, Anneleen & Minten, Bart & Swinnen, Johan F.M., 2009. "On food quality in domestic markets of developing economies," 2009 Conference, August 16-22, 2009, Beijing, China 51700, International Association of Agricultural Economists.
- 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
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-11-01 (Africa)
- NEP-AGR-2011-11-01 (Agricultural Economics)
- NEP-ALL-2011-11-01 (All new papers)
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