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Market information and smallholder farmer price expectations

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  • Haile, Mekbib G
  • Kalkuhl, Matthias
  • Usman, Muhammed A

Abstract

Price expectation plays an indispensable role in production, marketing and the agricultural technology adoption decisions of farmers. Using household survey data, this paper analyses the price expectations of farmers growing cereals and horse beans in Ethiopia. Our findings show that current and past output prices in local markets, central wholesale prices and seasonal rainfall are strongly correlated with smallholders’ price expectations. Reliable information on these variables assists farmers to form better price expectations, thereby improving their production decisions. This supports the recent developments in using information and communication technologies (ICTs) and market information systems (MIS) to convey market and weather information to farmers.

Suggested Citation

  • Haile, Mekbib G & Kalkuhl, Matthias & Usman, Muhammed A, 2015. "Market information and smallholder farmer price expectations," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(4), pages 1-15, December.
    • Handle: RePEc:ags:afjare:229811
    DOI: 10.22004/ag.econ.229811
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    Cited by:

    1. Dagim G. Belay & Hailemariam Ayalew, 2020. "Nudging farmers in crop choice using price information: Evidence from Ethiopian Commodity Exchange," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 793-808, September.
    2. Shengying Zhai & Qihui Chen & Wenxin Wang, 2019. "What Drives Green Fodder Supply in China?—A Nerlovian Analysis with LASSO Variable Selection," Sustainability, MDPI, vol. 11(23), pages 1-17, November.
    3. Muhammed Abdella Usman & Daniel Callo-Concha, 2021. "Does market access improve dietary diversity and food security? Evidence from Southwestern Ethiopian smallholder coffee producers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    4. Blend Frangu & Jennie Sheerin Popp & Michael Thomsen & Arben Musliu, 2018. "Evaluating Greenhouse Tomato and Pepper Input Efficiency Use in Kosovo," Sustainability, MDPI, vol. 10(8), pages 1-14, August.
    5. Anbes Tenaye, 2020. "New Evidence Using a Dynamic Panel Data Approach: Cereal Supply Response in Smallholder Agriculture in Ethiopia," Economies, MDPI, vol. 8(3), pages 1-24, July.
    6. Usman, Muhammed A. & Haile, Mekbib G., 2022. "Market access, household dietary diversity and food security: Evidence from Eastern Africa," Food Policy, Elsevier, vol. 113(C).
    7. Chintapalli, Prashant & Tang, Christopher S., 2022. "The implications of crop minimum support price in the presence of myopic and strategic farmers," European Journal of Operational Research, Elsevier, vol. 300(1), pages 336-349.
    8. Tesfaye, Abonesh & Hansen, James & Kassie, Girma Tesfahun & Radeny, Maren & Solomon, Dawit, 2019. "Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach," Ecological Economics, Elsevier, vol. 162(C), pages 157-168.

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    Farm Management; Marketing;

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