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Estimating Price Discounts for Low-Quality Maize in sub-Saharan Africa: Evidence from Benin

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  • Kadjo, Didier
  • Ricker-Gilbert, Jacob
  • Alexander, Corinne

Abstract

This article uses household data from Benin to estimate the extent that markets in sub-Saharan Africa discount damaged maize. Stated preference methods indicate that a 10% increase in insect damage results in a 9% maize price discount. However, revealed preference methods indicate that this discount is only 3%. Discounts are larger immediately after harvest than they are in the lean period when maize is scarce. Our results help explain why many smallholder farmers sell maize at harvest rather than making the effort to preserve grain of good quality for later in the season when it may fetch a higher price.

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  • Kadjo, Didier & Ricker-Gilbert, Jacob & Alexander, Corinne, 2016. "Estimating Price Discounts for Low-Quality Maize in sub-Saharan Africa: Evidence from Benin," World Development, Elsevier, vol. 77(C), pages 115-128.
    • Handle: RePEc:eee:wdevel:v:77:y:2016:i:c:p:115-128
    DOI: 10.1016/j.worlddev.2015.08.004
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    2. 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.
    3. Sanou, Awa & Liverpool-Tasie, Lenis Saweda O. & Caputo, Vincenzina & Kerr, John, 2021. "Introducing an aflatoxin-safe labeling program in complex food supply chains: Evidence from a choice experiment in Nigeria," Food Policy, Elsevier, vol. 102(C).
    4. Lenis Saweda O Liverpool‐Tasie & Charuta M. Parkhi, 2021. "Climate Risk and Technology Adoption in the Midstream of Crop Value Chains: Evidence from Nigerian Maize Traders," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 158-179, February.
    5. Kwon, Daye & Liverpool-Tasie, Saweda & Reardon, Thomas A., 2023. "Market Channel and Heterogeneous Storage Behavior in response to Multiple Risks: The Case of Nigerian Maize Traders," 2023 Annual Meeting, July 23-25, Washington D.C. 335810, Agricultural and Applied Economics Association.
    6. Kotu, B.H. & Abass, A. & Hoeschle-Zeledon, I. & Mbwambo, H. & Bekunda, M., 2018. "Returns to improved storage and potential impacts on household food security and income: evidence from Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276965, International Association of Agricultural Economists.
    7. Kadjo, Didier & Ricker-Gilbert, Jacob & Tahirou, Abdoulaye & Shively, Gerald & Baco, Nasser, 2016. "Adverse selection in informal maize markets in Benin," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249289, African Association of Agricultural Economists (AAAE).
    8. Channa, Hira & Ricker-Gilbert, Jacob & Feleke, Shiferaw T. & Abdoulaye, Tahirou, 2018. "Estimating the impact of a credit and technology intervention on farmer maize transactions: Insights from a RCT in Tanzania," 2018 Annual Meeting, August 5-7, Washington, D.C. 274235, Agricultural and Applied Economics Association.
    9. 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).
    10. Muganga Kizito, Andrew & Kato, Edward, 2018. "Does linking farmers to markets work? Evidence from the World Food Programme’s Purchase for Progress satellite collection points initiative in Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.
    11. Channa, Hira & Chen, Amy Z. & Pina, Patricia & Ricker-Gilbert, Jacob & Stein, Daniel, 2019. "What drives smallholder farmers’ willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya," Food Policy, Elsevier, vol. 85(C), pages 64-71.
    12. Nindi, Tabitha C. & Ricker-Gilbert, Jacob & Bauchet, Jonathan, 2020. "Identifying appropriate incentive mechanisms for smallholder farmers to exploit inter-temporal arbitrage opportunities for grain legumes: Experimental evidence from Malawi," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304424, Agricultural and Applied Economics Association.
    13. Patrick Ngwenyama & Shephard Siziba & Loveness K. Nyanga & Tanya E. Stathers & Macdonald Mubayiwa & Shaw Mlambo & Tinashe Nyabako & Aurélie Bechoff & Apurba Shee & Brighton M. Mvumi, 2023. "Determinants of smallholder farmers’ maize grain storage protection practices and understanding of the nutritional aspects of grain postharvest losses," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(4), pages 937-951, August.
    14. Tanya E. Stathers & Sarah E. J. Arnold & Corinne J. Rumney & Clare Hopson, 2020. "Measuring the nutritional cost of insect infestation of stored maize and cowpea," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 285-308, April.
    15. Simmons, Vivian & Yu, Jisang, 2018. "Food Safety Regulations on Unobservable Qualities in Developing Countries," 2018 Annual Meeting, August 5-7, Washington, D.C. 273892, Agricultural and Applied Economics Association.
    16. 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).
    17. Xiaoyu Sun & Xiaoli Yang & Ruilong Zhang, 2022. "The Determinants of Grape Storage: Evidence from Grape Growers in China," Agriculture, MDPI, vol. 12(12), pages 1-14, December.
    18. McCoy, Stacy & Ricker-Gilbert, Jacob & Sall, Moussa & Bauchet, Jonathan, 2016. "How do traders and consumers in sub-Saharan Africa value maize moisture content? Evidence from an experimental auction in Senegal," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235911, Agricultural and Applied Economics Association.
    19. Martey, Edward & Goldsmith, Peter, 2020. "Heterogeneous demand for soybean quality," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 15(1), March.
    20. Martin Julius Chegere & Razack Lokina & Agnes G. Mwakaje, 2020. "The impact of hermetic storage bag supply and training on food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1299-1316, December.
    21. 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.

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