Latent class analysis is applied to a hedonic price model to examine the presence of heterogeneity in consumer valuation of quality attributes in the Beninese rice market. Three classes of consumers are found in proportions of 5, 56, and 39 percent. We employ a partial equilibrium model and find modest gains in consumer surplus from an increase in head rice and reduction in chalkiness. The results provide evidence of market sorting, which should be taken into consideration in upgrading rice value chains. Also, it is important to assess potential gains from quality improvement to determine priorities for research and development.
The study applies parametric and nonparametric estimation methods to determine hedonic prices of rice quality attributes, and a partial equilibrium model to determine the payoff to investing in quality improvement in five countries in Sub-Saharan Africa. Results indicate that consumers are willing to pay price premiums for head rice, slender grains, peak viscosity, parboiled rice, and rice sold in urban markets. However, they strongly discount amylose content, rice with impurities and imported rice. Investing in quality improvement through amylose content reduction leads to net welfare gains with a benefit-cost ratio of 47.86 and internal rate of return of 90%.
One of the targets of Sustainable Development Goal 2 is to double agricultural productivity and incomes of small-scale food producers through, among other things, improving access to financial services including credit. However, designing appropriate mechanisms for increasing access to credit by poor households remains a challenge, especially in Sub-Saharan Africa. This paper argues that technology adoption and collective action could provide pathways to enhancing access to credit. Evidence from milk-producing households in Tanzania suggests that group membership increases the probability of borrowing and the amount of funds borrowed by households, while adoption of artificial insemination increases the amount of funds borrowed. Two major conclusions are that public policy for increasing rural households' access to credit should promote collective action, and that the likely increase in amount of funds demanded by households due to technology adoption and collective action will require policy to address issues pertaining to credit rationing of rural households. Résumé L'un des Objectifs du Développement Durable, l'objectif 2, est de doubler la productivité agricole ainsi que les revenus des petits producteurs de denrées alimentaires, notamment en améliorant l'accès aux services financiers, y compris les crédits. Toutefois, la conception de mécanismes appropriés pour accroître l'accès au crédit par les ménages pauvres demeure un défi, en particulier en Afrique subsaharienne. Cet article fait valoir que l'adoption de technologies et l'action collective pourraient fournir des pistes pour améliorer l'accès au crédit. Les données issues des ménages producteurs de lait en Tanzanie suggèrent que l'adhésion au groupe augmente la probabilité d'emprunt ainsi que le montant des fonds empruntés par les ménages, tandis que l'adoption de l'insémination artificielle augmente le montant des fonds empruntés. Deux grandes conclusions sont que la politique publique visant à accroître l'accès des ménages ruraux aux crédits devrait favoriser l'action collective, et l'augmentation probable des fonds réclamés par les ménages en raison de l'adoption de technologies et de l'action collective exigera des politiques pour résoudre les problèmes liés au rationnement du crédit des ménages ruraux.
Demonstrating how agricultural research contributes to development outcomes is difficult but necessary given competing demands for scarce resources. This article summarises an adaptation of the "theory of change" approach and lessons derived from its application to improve the design and implementation of an agricultural research for development programme for greater impact. It was applied to Maziwa Zaidi, a programme that tested integrated interventions to catalyse the transformation of smallholder dairy value chains in Tanzania. Despite challenges, the approach was found useful for planning, communication, managing complexity, monitoring behavioural changes and deriving lessons to adapt future programme activities amid complexity and uncertainties.
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