IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/170659.html
   My bibliography  Save this paper

Market Power & Economic Consequences of Post-Harvest Losses in Rwandan Dry Bean Markets

Author

Listed:
  • Jones, Michael S.
  • Alexander, Corinne E.
  • Smith, Bruce

Abstract

To date there is extremely limited knowledge of the economic consequences of post-harvest losses for smallholders in sub-Saharan Africa. Major contributors to economic losses are price penalties for poor quality marketed grain. This study investigates farm-gate level discounts demanded by rural Rwandan bean traders for insect-damaged dry beans. We use a simplified contingent evaluation methodology with physical grain samples to elicit seasonal damage discount schedules, gathering data from 270 trader interviews in 25 regionally-diverse rural markets, in periods of both grain abundance and grain scarcity. We find that while levels of 5-10% grain damage can generally be sold with a moderate discount, grain with 20-30% damage is largely unmarketable. We additionally use a two-stage model to investigate physical and non-physical drivers of buying insect-damaged grain and, if so, the demanded discount intensity. Results indicate that while grain damage levels play a central role, large volume traders penalize damage less while traders in the seed market, storing before re-sale, or purchasing heavily from farmers (vs. other traders) penalize damage significantly more. Findings have helped develop more evidence-based extension programming for the Post-Harvest Task Force of the Rwandan Ministry of Agriculture. Additionally, derived discount coefficients help evaluate the cost-effectiveness of technologies throughout the region which prevent post-harvest damage.

Suggested Citation

  • Jones, Michael S. & Alexander, Corinne E. & Smith, Bruce, "undated". "Market Power & Economic Consequences of Post-Harvest Losses in Rwandan Dry Bean Markets," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170659, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:170659
    DOI: 10.22004/ag.econ.170659
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/170659/files/Market%20Power%20and%20Economic%20Consequences%20of%20PH%20Damage%20-%20AAEA1%202014.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.170659?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
    ---><---

    References listed on IDEAS

    as
    1. Mishili, Fulgence J. & Temu, Anna A. & Fulton, Joan R. & Lowenberg-DeBoer, James, 2009. "Consumer preferences as drivers of the common bean trade in Tanzania: A marketing perspective," Staff Papers 48658, Purdue University, Department of Agricultural Economics.
    2. Fulgence Joseph Mishili & Joan Fulton & Musa Shehu & Saket Kushwaha & Kofi Marfo & Mustafa Jamal & Alpha Kergna & J. Lowenberg-DeBoer, 2009. "Consumer preferences for quality characteristics along the cowpea value chain in Nigeria, Ghana, and Mali," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 16-35.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Mishili, Fulgence J. & Temu, Anna A. & Fulton, Joan R. & Lowenberg-DeBoer, James, 2009. "Consumer preferences as drivers of the common bean trade in Tanzania: A marketing perspective," Staff Papers 48658, Purdue University, Department of Agricultural Economics.
    3. Jones, Michael & Alexander, Corinne E. & Lowenberg-DeBoer, James, 2011. "Profitability of Hermetic Purdue Improved Crop Storage (PICS) Bags for African Common Bean Producers," Working papers 117708, Purdue University, Department of Agricultural Economics.
    4. Ebata, Ayako & Pacheco, Pamela Alejandra & Cramon-Taubadel, Stephan von, 2015. "Distance to market and farm-gate prices of staple beans in rural Nicaragua," 2015 Conference, August 9-14, 2015, Milan, Italy 211582, International Association of Agricultural Economists.
    5. Theriault, Veronique & Assima, Amidou & Vroegindewey, Ryan & Tschirley, David & Keita, Naman, 2017. "A City-Retail Outlet Inventory Of Processed Dairy And Grain Foods: Evidence From Mali," Feed the Future Innovation Lab for Food Security Policy Research Papers 261675, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    6. Magen, Benjamin B., 2012. "An Ex Post Economic Impact Assessment of Bean/Cowpea Crsp’s Investment on Varietal Development in Senegal," Graduate Research Master's Degree Plan B Papers 142739, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Takeshima, Hiroyuki & Nagarajan, Latha & Salau, Sheu & Oyekale, Abayomi, 2010. "Nigerian farmers’ preferences on the timing of the purchase of rice, cowpea, and maize seeds:," NSSP working papers 20, International Food Policy Research Institute (IFPRI).
    8. Uwamariya, Beatrice, 2014. "Assessment of Consumer Awareness and Preferences for Quality Certification and Origin-Labeling in Fruit Salads in Kigali,Rwanda," Research Theses 198512, Collaborative Masters Program in Agricultural and Applied Economics.
    9. Nkoyo Etim Bassey & Arnim Kuhn & Hugo Storm, 2018. "Are maize marketers averse to quality loss in supplies? A case study from Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 649-658, September.
    10. Edward B. Barbier & Mikołaj Czajkowski & Nick Hanley, 2017. "Is the Income Elasticity of the Willingness to Pay for Pollution Control Constant?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 663-682, November.
    11. Kotchofa, Pacem A., "undated". "Expenditure and Price Elasticities of Demand for Cowpeas in Northern Ghana. Implications for Public Policies," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259966, Agricultural and Applied Economics Association.
    12. Sichilima, Timothy & Mapemba, Lawrence & Tembo, Gelson, 2016. "Drivers of Dry Common Beans Trade in Lusaka, Zambia: A Trader’s Perspective," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 5(2).
    13. Sanusi, Olajide I. & Safi, Samir K. & Adeeko, Omotara & Tabash, Mosab I., 2022. "Forecasting agricultural commodity price using different models: a case study of widely consumed grains in Nigeria," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(2), June.
    14. Ebata, Ayako & Velasco, Pamela & von Cramon-Taubadel, Stephan, 2015. "Distance to market and farm-gate prices of staple beans in rural Nicaragua," GlobalFood Discussion Papers 197540, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    15. Otieno, Zipora & Okello, Julius J. & Nyikal, Rose & Mwang'ombe, Agnes & Clavel, Daniele, 2011. "The role of varietal traits in the adoption of improved dryland crop varieties: The case of pigeon pea in Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 6(2), pages 1-18, September.

    More about this item

    Keywords

    Food Security and Poverty; Research and Development/Tech Change/Emerging Technologies;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:aaea14:170659. 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: https://edirc.repec.org/data/aaeaaea.html .

    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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.