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When quality (doesn't) pay: Evidence from two experiments in Uganda

Author

Listed:
  • Van Campenhout, Bjorn
  • Ariong, Richard M.
  • Kariuki, Sara Wairimu
  • Chamberlin, Jordan

Abstract

Quality in agri-food supply chains is often unobservable at first sale and early aggregation limits traceability, weakening incentives for quality provision. We study whether making milk quality visible and traceable creates a market for quality in Uganda’s dairy sector. Increasing observability reduces adulteration and improves quality, but no premium emerges. In a follow-up experiment, we introduce trader quality premiums. This increases quality when binding, yet informed intermediaries capture the gains and farm-gate prices do not rise. Observability is necessary but insufficient: without downstream demand for quality and pass-through by intermediaries, incentives for quality upgrading remain weak.

Suggested Citation

  • Van Campenhout, Bjorn & Ariong, Richard M. & Kariuki, Sara Wairimu & Chamberlin, Jordan, 2026. "When quality (doesn't) pay: Evidence from two experiments in Uganda," IFPRI discussion papers 2420, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:183322
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    References listed on IDEAS

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