IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/182475.html

Spatial disparity, information, and the economics of cool transportation: Insights from a randomized controlled trial in Nigeria

Author

Listed:
  • Yamauchi, Futoshi
  • Balana, Bedru B.
  • Bawa, Dauda
  • Edeh, Hyacinth
  • Shi, Weilun

Abstract

Food loss is a significant source of economic inefficiency in value chains. In many developing countries, including Nigeria, a majority of fruits, vegetables, and other perishable foods are lost after harvest, due in large part to inadequate postharvest handling or low adoption of post-harvest management technologies, particularly cooling technologies such as temperature-controlled transportation and cold storage. To examine the economic impacts of cool transportation connecting vegetable-producing states in northeast Nigeria to large demand centers in Nigeria’s southern regions, we introduced a randomized controlled trial. Cool transportation was found to have a large and statistically significant impact: sales price, revenues, and profits increased substantially for the origin-state marketers. A larger portion of sales price increase at the destination market is attributed to refrigeration, that is, quality preservation through cooling. About 66 percent of this increase comes from cooling, with an additional 34 percent from transportation. An information experiment further showed that improved quality information through labelling that identifies the origin of the produce creates price premiums at the destination market. This implies that significant economic gains can be generated not only from narrowing supply–demand gaps in different markets but also, potentially, through mitigating spatial asymmetric information.

Suggested Citation

  • Yamauchi, Futoshi & Balana, Bedru B. & Bawa, Dauda & Edeh, Hyacinth & Shi, Weilun, 2026. "Spatial disparity, information, and the economics of cool transportation: Insights from a randomized controlled trial in Nigeria," IFPRI discussion papers 2410, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:182475
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/182475
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tanya Stathers & Deirdre Holcroft & Lisa Kitinoja & Brighton M. Mvumi & Alicia English & Oluwatoba Omotilewa & Megan Kocher & Jessica Ault & Maximo Torero, 2020. "A scoping review of interventions for crop postharvest loss reduction in sub-Saharan Africa and South Asia," Nature Sustainability, Nature, vol. 3(10), pages 821-835, October.
    2. Christiaensen,Luc & Kaminski,Jonathan & Christiaensen,Luc & Kaminski,Jonathan, 2014. "Post-harvest loss in Sub-Saharan Africa -- what do farmers say ?," Policy Research Working Paper Series 6831, The World Bank.
    3. Delgado, Luciana & Schuster, Monica & Torero, Maximo, 2021. "Quantity and quality food losses across the value Chain: A Comparative analysis," Food Policy, Elsevier, vol. 98(C).
    4. Michael Rothschild & Joseph Stiglitz, 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 629-649.
    5. Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal & Dewina, Reno & Sumaryanto, Sony, 2011. "Are Schooling and Roads Complementary? Evidence from Income Dynamics in Rural Indonesia," World Development, Elsevier, vol. 39(12), pages 2232-2244.
    6. Hiroyuki Takeshima & Futoshi Yamauchi & Hyacinth O. Edeh & Manuel A. Hernandez, 2023. "Solar‐powered cold‐storage and agrifood market modernization in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 234-255, March.
    7. Cattaneo, Andrea & Sánchez, Marco V. & Torero, Máximo & Vos, Rob, 2021. "Reducing food loss and waste: Five challenges for policy and research," Food Policy, Elsevier, vol. 98(C).
    8. Affognon, Hippolyte & Mutungi, Christopher & Sanginga, Pascal & Borgemeister, Christian, 2015. "Unpacking Postharvest Losses in Sub-Saharan Africa: A Meta-Analysis," World Development, Elsevier, vol. 66(C), pages 49-68.
    9. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70(5), pages 1-9.
    10. Christine Plaisier & Milindi Sibomana & Johannes Van der Waal & Luud Clercx & Coen P. A. Van Wagenberg & Youri Dijkxhoorn, 2019. "Approach for Designing Context-Specific, Locally Owned Interventions to Reduce Postharvest Losses: Case Study on Tomato Value Chains in Nigeria," Sustainability, MDPI, vol. 11(1), pages 1-16, January.
    11. Durba Kashyap & Tripti Agarwal, 2020. "Food loss in India: water footprint, land footprint and GHG emissions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 2905-2918, April.
    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. Shukla, Pallavi & Pullabhotla, Hemant K. & Baylis, Kathy, 2023. "The economics of reducing food losses: Experimental evidence from improved storage technology in India," Food Policy, Elsevier, vol. 117(C).
    2. Michele Pedrotti & Daniele Fattibene & Marta Antonelli & Bob Castelein, 2023. "Approaching Urban Food Waste in Low- and Middle-Income Countries: A Framework and Evidence from Case Studies in Kibera (Nairobi) and Dhaka," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    3. Benimana, Gilberthe Uwera & Ritho, Cecilia & Irungu, Patrick, 2023. "Impact and factors determining choice of hermetic maize storage technology adoption on smallholder farmers’ income in Gatsibo District, Rwanda," 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa 365890, African Association of Agricultural Economists (AAAE).
    4. Curzi, Daniele & Nota, Paolo & Di Falco, Salvatore, 2022. "Post-Harvest Losses and Climate Conditions in Sub-Saharan Africa," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321219, Agricultural Economics Society - AES.
    5. Xue Qu & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2021. "The Losses in the Rice Harvest Process: A Review," Sustainability, MDPI, vol. 13(17), pages 1-25, August.
    6. Daniel Faibil & Martin Agyemang & Owusu Amponsah & Himanshu Gupta & Simonov Kusi-Sarpong, 2021. "Assessing drivers of post-harvest losses: tangible and intangible resources’ perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 15785-15829, November.
    7. Siphiw’okuhle Nohamba & Joseph P. Musara & Yonas T. Bahta & Abiodun A. Ogundeji, 2022. "Drivers of Postharvest Loss among Citrus Farmers in Eastern Cape Province of South Africa: A Zero-Inflated Poisson (ZIP) Regression Model Analysis," Agriculture, MDPI, vol. 12(10), pages 1-19, October.
    8. Brander, Michael & Abro, Zewdu & Kassie, Menale & Mittmann, Wolfgang & Stiefel, Lukas & Huss, Matthias, 2025. "Small policy changes can accelerate the adoption of improved on-farm storage among smallholder farmers," World Development, Elsevier, vol. 195(C).
    9. Vandercasteelen, Joachim & Christiaensen, Luc, 2020. "Breaking down silos: On post-harvest loss interventions in Tanzania," Policy briefs 1247693176, International Food Policy Research Institute (IFPRI).
    10. Jannike Wichern & Mark T. Wijk & Katrien Descheemaeker & Romain Frelat & Piet J. A. Asten & Ken E. Giller, 2017. "Food availability and livelihood strategies among rural households across Uganda," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1385-1403, December.
    11. Chegere, Martin Julius, 2018. "Post-harvest losses reduction by small-scale maize farmers: The role of handling practices," Food Policy, Elsevier, vol. 77(C), pages 103-115.
    12. Enoch Mutebi Kikulwe & Stanslus Okurut & Susan Ajambo & Kephas Nowakunda & Dietmar Stoian & Diego Naziri, 2018. "Postharvest Losses and their Determinants: A Challenge to Creating a Sustainable Cooking Banana Value Chain in Uganda," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    13. Klara Strecker & Verena Bitzer & Froukje Kruijssen, 2022. "Critical stages for post-harvest losses and nutrition outcomes in the value chains of bush beans and nightshade in Uganda," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(2), pages 411-426, April.
    14. Margareta Amy Lelea & Chemeda Abedeta Garbaba & Abera Guluma & Oliver Hensel, 2022. "Gendering post-harvest loss research: responsibilities of women and men to manage maize after harvest in southwestern Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(4), pages 951-963, August.
    15. Edward P. Lazear, 1986. "Incentive Contracts," NBER Working Papers 1917, National Bureau of Economic Research, Inc.
    16. Chaboud, Géraldine & Moustier, Paule, 2021. "The role of diverse distribution channels in reducing food loss and waste: The case of the Cali tomato supply chain in Colombia," Food Policy, Elsevier, vol. 98(C).
    17. Oluwatoba J. Omotilewa & Dieudonne Baributsa, 2022. "Assessing the Private Sector’s Efforts in Improving the Supply Chain of Hermetic Bags in East Africa," Sustainability, MDPI, vol. 14(19), pages 1-16, October.
    18. M. S. Sibomana & T. S. Workneh & K. Audain, 2016. "A review of postharvest handling and losses in the fresh tomato supply chain: a focus on Sub-Saharan Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(2), pages 389-404, April.
    19. Kate Ambler & Alan de Brauw & Susan Godlonton, 2018. "Measuring postharvest losses at the farm level in Malawi," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(1), pages 139-160, January.
    20. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2018. "The impacts of postharvest storage innovations on food security and welfare in Ethiopia," Food Policy, Elsevier, vol. 75(C), pages 52-67.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:fpr:ifprid:182475. See general information about how to correct material in RePEc.

    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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.