Farmers’ marketing preferences in local coffee markets: Evidence from a choice experiment in Ethiopia

Gelaw, Fekadu; Speelman, Stijn; Huylenbroeck, Guido Van

doi:10.1016/j.foodpol.2016.02.006

Cited by 43 publications

(49 citation statements)

References 47 publications

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“…A few recent studies have used choice experiments to assess marketing preferences of smallholder farmers in developing countries (Blandon et al, 2009b;Schipmann and Qaim, 2011;Gelaw et al, 2016;Vassalos et al, 2016). Traditional channel farmers…”

Section: Choice Experimental Approachmentioning

confidence: 99%

Farmers’ preferences for supermarket contracts in Kenya

Ochieng

Veettil²,

Qaim

2017

Food Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWith the modernization of global agri-food systems, the role of contract farming is increasing. This also involves smallholder farmers in developing countries. While previous studies have looked at economic impacts of contract schemes on smallholder farmers, little is known about farmers' preferences for contracting in general, and for specific contract design attributes in particular. Better understanding farmers' preferences and constraints is important to make smallholder contract schemes more viable and beneficial. This article builds on a choice experiment to analyze farmers' preferences and preference heterogeneity for contracts in Kenya. In the study region, supermarkets use contracts to source for fresh vegetables directly from preferred suppliers. However, farmer dropout rates are high. Mixed logit models are estimated to examine farmers' attitudes towards critical contract design attributes. Having to deliver their harvest to urban supermarkets is costly; hence farmers require a significant output price markup. Farmers also dislike delayed payments that are commonplace in contract schemes. The most problematic contract attribute is related to unpredictable product rejection rates, which substantially add to farmers' risk. Designing contracts with lower transaction costs, more transparent quality grading, and fairer risk-sharing clauses could enhance smallholder participation in supermarket procurement channels.

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Section: Choice Experimental Approachmentioning

confidence: 99%

Farmers’ preferences for supermarket contracts in Kenya

Ochieng

Veettil²,

Qaim

2017

Food Policy

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“…Diverse problems could be responsible for these poor impacts. First, the institutional and social environment in the local markets is conducive for collusion of traders (Gelaw et al., ; ). For oligopolistic traders, the incentive to reduce the price when prices at the central market decline is likely to be high, but they will have little incentive to increase the price when pricea in the central market increase.…”

Section: Resultsmentioning

confidence: 99%

“…Despite these interventions to improve the central auction markets, no meaningful intervention was made to improve downstream and upstream markets. Local coffee markets, especially, are governed by informal institutions (Meijerink et al., ; Getnet, ) and transactions remain traditional, barely competitive and personalized (Gelaw et al., ). Transactions are traditional in the sense that there is no grading, standardization or labeling.…”

Section: Introductionmentioning

confidence: 99%

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Impacts of Institutional Intervention on Price Transmissions: The Case of the Ethiopian Commodity Exchange

Gelaw

Speelman

Huylenbroeck

2017

Review Development Economics

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“…Choice experiments (CEs) have been widely used in the agricultural and environmental economics literature and their use in development economics is rising [37,38]. Several studies have used CEs to evaluate farmers' behavior and preferences [37,39,40]. An advantage of using CE is that it is a technique for eliciting preferences to understand farmers' demands for new varieties where it is impossible to use revealed preference data on the actual choices made by farmers.…”

Section: Discrete Choice Approachmentioning

confidence: 99%

Farmers’ Preferences for Cotton Cultivation Characteristics: A Discrete Choice Experiment in Burkina Faso

et al. 2019

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While a fierce debate about the advantages and disadvantages of genetically modified crops is ongoing, it is surprising that farmers are often not consulted. In Burkina Faso, where insect resistant Bollgard II® cotton (further termed Bt cotton) was commercially released in 2008, studies highlight that cotton producers are in general satisfied with the reduction in insecticide use while the economic benefits are a source of controversy. To gain insight into farmers’ preferences towards attributes in cotton cultivation, a discrete choice experiment (DCE) was developed. Five key attributes were identified to describe improved cotton varieties: seed development and provenance, seed costs, yield, required number of insecticide sprays, and preservation of agricultural practices. Farm-gate surveys were conducted among 324 cotton farmers in Western Burkina Faso. The results show that overall, farmers have a positive preference towards yield improvements and a negative preference towards pure private seed development and towards an increase in the requested number of insecticide applications or in the seed costs. According to their varieties at the time of the surveys (Bt and non-Bt), a difference was observed regarding their preferences for a status quo situation, indicating that those growing Bt had a stronger preference to keep the status quo than non-Bt farmers. When dividing the sample in segments based on the farm size, it was shown that there were different preferences with respect to the development of the variety and the required number of insecticide applications. Overall, it can be concluded from this study that economic benefits (linked to higher yields, lower seed costs, or reduced pesticide use) shape farmer’s preferences.

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Farmers’ marketing preferences in local coffee markets: Evidence from a choice experiment in Ethiopia

Cited by 43 publications

References 47 publications

Farmers’ preferences for supermarket contracts in Kenya

Farmers’ preferences for supermarket contracts in Kenya

Impacts of Institutional Intervention on Price Transmissions: The Case of the Ethiopian Commodity Exchange

Farmers’ Preferences for Cotton Cultivation Characteristics: A Discrete Choice Experiment in Burkina Faso

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