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Selling at the farm-gate or travelling to market

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  • Marcel Fafchamps
  • Ruth Vargas Hill

Abstract

Using detailed survey data from Uganda, this paper examines coffee producers sell to itinerant traders or directly to markets, where they can get a higher price but must incur a transport cost. We find that selling to the market is more likely when the quantity sold is large and the market close by. Wealthy farmers are less likely to sell to the market, possibly because the shadow value of their time is higher. But if they have a large quantity of coffee for sale, they are more likely to sell it to the market. They are also more likely to travel to a distant market, These findings are consistent with their better ability to pay for public transportation.

Suggested Citation

  • Marcel Fafchamps & Ruth Vargas Hill, 2004. "Selling at the farm-gate or travelling to market," CSAE Working Paper Series 2004-30, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2004-30
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