IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v151y2021ics0304387820301954.html
   My bibliography  Save this article

Information, technology, and market rewards: Incentivizing aflatoxin control in Ghana

Author

Listed:
  • Magnan, Nicholas
  • Hoffmann, Vivian
  • Opoku, Nelson
  • Gajate Garrido, Gissele
  • Kanyam, Daniel Akwasi

Abstract

The quality of agricultural products can affect both farm incomes and the healthfulness of farm families’ diets. However, many quality attributes are hard to observe, making it difficult for farmers to learn how to improve the quality of their crops. Lack of premium pass-through and the cost of quality-enhancing inputs are additional barriers to improving output quality. In this paper, we examine the relative importance of each of these barriers to smallholder adoption of technologies for reducing aflatoxin, a common food safety hazard. We conduct a randomized controlled trial in northern Ghana over the course of two seasons to test how three interventions affect adoption of practices that reduce aflatoxin risk as well as aflatoxin levels in groundnuts: (1) training on aflatoxin and its prevention, (2) distribution of free drying sheets, and (3) a price premium for groundnuts that comply with aflatoxin regulations. We find that training farmers substantially improves post-harvest practices. Drying sheet distribution and, to a lesser extent, the premium price offer lead to further improvements, including crowding-in of non-subsidized practices. We find substantial corresponding decreases in aflatoxin levels from drying sheet provision in the study region with high non-negligible background aflatoxin levels. Impacts are stronger for households with higher aflatoxin at baseline, more members, and young children.

Suggested Citation

  • Magnan, Nicholas & Hoffmann, Vivian & Opoku, Nelson & Gajate Garrido, Gissele & Kanyam, Daniel Akwasi, 2021. "Information, technology, and market rewards: Incentivizing aflatoxin control in Ghana," Journal of Development Economics, Elsevier, vol. 151(C).
    • Handle: RePEc:eee:deveco:v:151:y:2021:i:c:s0304387820301954
    DOI: 10.1016/j.jdeveco.2020.102620
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304387820301954
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jdeveco.2020.102620?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anderson, ML, 2008. "Multiple inference and gender differences in the effects of early intervention: A reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt15n8j26f, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Marcel Fafchamps & Ruth Vargas Hill & Bart Minten, 2008. "Quality control in nonstaple food markets: evidence from India," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 251-266, May.
    3. Macchiavello, Rocco & Miquel-Florensa, Josepa, 2019. "Buyer-Driven Upgrading in GVCs: The Sustainable Quality Program in Colombia," CEPR Discussion Papers 13935, C.E.P.R. Discussion Papers.
    4. Christoph Saenger & Maximo Torero & Matin Qaim, 2014. "Impact of Third-party Contract Enforcement in Agricultural Markets-A Field Experiment in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1220-1238.
    5. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    6. Nava Ashraf & Xavier Giné & Dean Karlan, 2009. "Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 973-990.
    7. Bo Xiong & John Beghin, 2017. "Does European aflatoxin regulation hurt groundnut exporters from Africa?," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 16, pages 287-307, World Scientific Publishing Co. Pte. Ltd..
    8. Antle, John M., 2001. "Economic analysis of food safety," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 19, pages 1083-1136, Elsevier.
    9. Tanguy Bernard & Alain de Janvry & Samba Mbaye & Elisabeth Sadoulet, 2017. "Expected Product Market Reforms and Technology Adoption by Senegalese Onion Producers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 1096-1115.
    10. Andrew D. Foster & Mark R. Rosenzweig, 2010. "Microeconomics of Technology Adoption," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 395-424, September.
    11. Kate Ambler & Diego Aycinena & Dean Yang, 2015. "Channeling Remittances to Education: A Field Experiment among Migrants from El Salvador," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 207-232, April.
    12. Sébastien Pouliot & Daniel A. Sumner, 2008. "Traceability, Liability, and Incentives for Food Safety and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 15-27.
    13. Alexandre Belloni & Victor Chernozhukov & Christian Hansen, 2014. "Inference on Treatment Effects after Selection among High-Dimensional Controlsâ€," Review of Economic Studies, Oxford University Press, vol. 81(2), pages 608-650.
    14. Aggarwal, Shilpa & Francis, Eilin & Robinson, Jonathan, 2018. "Grain today, gain tomorrow: Evidence from a storage experiment with savings clubs in Kenya," Journal of Development Economics, Elsevier, vol. 134(C), pages 1-15.
    15. Guido W. Imbens & Charles F. Manski, 2004. "Confidence Intervals for Partially Identified Parameters," Econometrica, Econometric Society, vol. 72(6), pages 1845-1857, November.
    16. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
    17. Michael R. Carter & Rachid Laajaj & Dean Yang, 2013. "The Impact of Voucher Coupons on the Uptake of Fertilizer and Improved Seeds: Evidence from a Randomized Trial in Mozambique," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1345-1351.
    18. Florkowski, Wojciech J. & Kolavalli, Shashidhara, 2013. "Aflatoxin control strategies in the groundnut value chain in Ghana:," GSSP working papers 33, International Food Policy Research Institute (IFPRI).
    19. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," Review of Economic Studies, Oxford University Press, vol. 76(3), pages 1071-1102.
    20. Didier Kadjo & Jacob Ricker‐Gilbert & Gerald Shively & Tahirou Abdoulaye, 2020. "Food Safety and Adverse Selection in Rural Maize Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 412-438, June.
    21. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    22. Miriam Bruhn & David McKenzie, 2009. "In Pursuit of Balance: Randomization in Practice in Development Field Experiments," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 200-232, October.
    23. Hoffmann, Vivian & Jones, Kelly M., 2018. "Improving food safety on the farm: Experimental evidence from Kenya on agricultural incentives and subsidies as public health investments," IFPRI discussion papers 1746, International Food Policy Research Institute (IFPRI).
    24. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    25. Kersting, Sarah & Wollni, Meike, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," Food Policy, Elsevier, vol. 37(4), pages 452-462.
    26. Hoffmann, Vivian & Mutiga, Samuel & Harvey, Jagger & Nelson, Rebecca & Milgroom, Michael, 2013. "Aflatoxin Contamination of Maize in Kenya: Observability and Mitigation Behavior," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 155024, Agricultural and Applied Economics Association.
    27. Jonathan Bauchet & Stacy Prieto & Jacob Ricker‐Gilbert, 2021. "Improved Drying and Storage Practices that Reduce Aflatoxins in Stored Maize: Experimental Evidence from Smallholders in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 296-316, January.
    28. Vivian Hoffmann & Christine Moser, 2017. "You get what you pay for: the link between price and food safety in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 48(4), pages 449-458, July.
    29. Basu, Karna & Wong, Maisy, 2015. "Evaluating seasonal food storage and credit programs in east Indonesia," Journal of Development Economics, Elsevier, vol. 115(C), pages 200-216.
    30. Marshall Burke & Lauren Falcao Bergquist & Edward Miguel, 2019. "Sell Low and Buy High: Arbitrage and Local Price Effects in Kenyan Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 134(2), pages 785-842.
    31. David Boselie & Spencer Henson & Dave Weatherspoon, 2003. "Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1155-1161.
    32. Hoffmann, Vivian & Mutiga, Samuel K. & Harvey, Jagger W. & Nelson, Rebecca J. & Milgroom, Michael G., 2021. "Observability of food safety losses in maize: Evidence from Kenya," Food Policy, Elsevier, vol. 98(C).
    33. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    34. Jolly, Curtis M. & Bayard, Budry & Awuah, Richard T. & Fialor, Simon C. & Williams, Johnathan T., 2009. "Examining the structure of awareness and perceptions of groundnut aflatoxin among Ghanaian health and agricultural professionals and its influence on their actions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 280-287, March.
    35. Ashraf, Nava & Giné, Xavier & Karlan, Dean S., 2009. "AJAE appendix for “Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-9, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leavens, Laura & Bauchet, Jonathan & Ricker-Gilbert, Jacob, 2021. "After the project is over: Measuring longer-term impacts of a food safety intervention in Senegal," World Development, Elsevier, vol. 141(C).
    2. Mark Treurniet, 2021. "The Potency of Quality Incentives: Evidence from the Indonesian Dairy Value Chain," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1661-1678, October.
    3. Abate, Gashaw T. & Bernard, Tanguy & de Janvry, Alain & Sadoulet, Elisabeth & Trachtman, Carly, 2021. "Introducing quality certification in staple food markets in Sub-Saharan Africa: Four conditions for successful implementation," Food Policy, Elsevier, vol. 105(C).
    4. Hoffmann, Vivian & Jones, Kelly, 2021. "Improving food safety on the farm: Experimental evidence from Kenya on incentives and subsidies for technology adoption," World Development, Elsevier, vol. 143(C).
    5. Hoffmann, Vivian & Jones, Kelly M., 2018. "Improving food safety on the farm: Experimental evidence from Kenya on agricultural incentives and subsidies as public health investments," IFPRI discussion papers 1746, International Food Policy Research Institute (IFPRI).
    6. Hoffmann, Vivian & Mutiga, Samuel K. & Harvey, Jagger W. & Nelson, Rebecca J. & Milgroom, Michael G., 2021. "Observability of food safety losses in maize: Evidence from Kenya," Food Policy, Elsevier, vol. 98(C).
    7. Channa, Hira & Ricker-Gilbert, Jacob & Feleke, Shiferaw & Abdoulaye, Tahirou, 2022. "Overcoming smallholder farmers’ post-harvest constraints through harvest loans and storage technology: Insights from a randomized controlled trial in Tanzania," Journal of Development Economics, Elsevier, vol. 157(C).
    8. Marc F. Bellemare, 2022. "Agricultural value chains: towards a marriage of development economics and industrial organisation?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 241-255, April.
    9. Jonathan Bauchet & Stacy Prieto & Jacob Ricker‐Gilbert, 2021. "Improved Drying and Storage Practices that Reduce Aflatoxins in Stored Maize: Experimental Evidence from Smallholders in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 296-316, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    2. Arslan, Cansın & Wollni, Meike & Oduol, Judith & Hughes, Karl, 2022. "Who communicates the information matters for technology adoption," World Development, Elsevier, vol. 158(C).
    3. Hoffmann, Vivian & Moser, Christine & Saak, Alexander, 2019. "Food safety in low and middle-income countries: The evidence through an economic lens," World Development, Elsevier, vol. 123(C), pages 1-1.
    4. Abate, Gashaw T. & Bernard, Tanguy & de Janvry, Alain & Sadoulet, Elisabeth & Trachtman, Carly, 2021. "Introducing quality certification in staple food markets in Sub-Saharan Africa: Four conditions for successful implementation," Food Policy, Elsevier, vol. 105(C).
    5. Hoffmann, Vivian & Jones, Kelly, 2021. "Improving food safety on the farm: Experimental evidence from Kenya on incentives and subsidies for technology adoption," World Development, Elsevier, vol. 143(C).
    6. Alain de Janvry & Elisabeth Sadoulet, 2019. "Transforming developing country agriculture: Removing adoption constraints and promoting inclusive value chain development," Working Papers hal-02287668, HAL.
    7. Ricker-Gilbert, Jacob & Moussa, Bokar & Abdoulaye, Tahirou, 2021. "Using Branding to Signal Quality in Informal Markets. Evidence from an Experimental Auction in the Sahel," 2021 Conference, August 17-31, 2021, Virtual 315284, International Association of Agricultural Economists.
    8. Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).
    9. Gajate-Garrido, Gissele & Hoffmann, Vivian & Magnan, Nicholas & Opoku, Nelson, 2016. "Technological and Market Interventions for Aflatoxin Control in Ghana: Preliminary Findings," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236267, Agricultural and Applied Economics Association.
    10. Channa, Hira & Ricker-Gilbert, Jacob & Feleke, Shiferaw & Abdoulaye, Tahirou, 2022. "Overcoming smallholder farmers’ post-harvest constraints through harvest loans and storage technology: Insights from a randomized controlled trial in Tanzania," Journal of Development Economics, Elsevier, vol. 157(C).
    11. Yitayew, Asresu & Abdulai, Awudu & Yigezu, Yigezu A. & Deneke, Tilaye T. & Kassie, Girma T., 2021. "Impact of agricultural extension services on the adoption of improved wheat variety in Ethiopia: A cluster randomized controlled trial," World Development, Elsevier, vol. 146(C).
    12. Guigonan S. Adjognon & Daan van Soest & Jonas Guthoff, 2021. "Reducing Hunger with Payments for Environmental Services (PES): Experimental Evidence from Burkina Faso," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 831-857, May.
    13. Didier Kadjo & Jacob Ricker‐Gilbert & Gerald Shively & Tahirou Abdoulaye, 2020. "Food Safety and Adverse Selection in Rural Maize Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 412-438, June.
    14. Fernando, A. Nilesh, 2021. "Seeking the treated: The impact of mobile extension on farmer information exchange in India," Journal of Development Economics, Elsevier, vol. 153(C).
    15. Bjorn Van Campenhout & David J. Spielman & Els Lecoutere, 2021. "Information and Communication Technologies to Provide Agricultural Advice to Smallholder Farmers: Experimental Evidence from Uganda," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 317-337, January.
    16. Depew, Briggs & Eren, Ozkan, 2016. "Born on the wrong day? School entry age and juvenile crime," Journal of Urban Economics, Elsevier, vol. 96(C), pages 73-90.
    17. Diva Dhar & Tarun Jain & Seema Jayachandran, 2022. "Reshaping Adolescents' Gender Attitudes: Evidence from a School-Based Experiment in India," American Economic Review, American Economic Association, vol. 112(3), pages 899-927, March.
    18. Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang, 2020. "Contract structure, time preference, and technology adoption," GLO Discussion Paper Series 633, Global Labor Organization (GLO).
    19. Mullally, Conner & Chakravarty, Shourish, 2018. "Are matching funds for smallholder irrigation money well spent?," Food Policy, Elsevier, vol. 76(C), pages 70-80.
    20. Paola Mallia, 2022. "You reap what (you think) you sow? Evidence on farmers’behavioral adjustments in the case of correct crop varietal identification," PSE Working Papers hal-03597332, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:151:y:2021:i:c:s0304387820301954. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/devec .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.