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Estimating Price Discounts for Low-Quality Maize in sub-Saharan Africa: Evidence from Benin

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  • Kadjo, Didier
  • Ricker-Gilbert, Jacob
  • Alexander, Corinne
Abstract
This article uses household data from Benin to estimate the extent that markets in sub-Saharan Africa discount damaged maize. Stated preference methods indicate that a 10% increase in insect damage results in a 9% maize price discount. However, revealed preference methods indicate that this discount is only 3%. Discounts are larger immediately after harvest than they are in the lean period when maize is scarce. Our results help explain why many smallholder farmers sell maize at harvest rather than making the effort to preserve grain of good quality for later in the season when it may fetch a higher price.

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  • Kadjo, Didier & Ricker-Gilbert, Jacob & Alexander, Corinne, 2016. "Estimating Price Discounts for Low-Quality Maize in sub-Saharan Africa: Evidence from Benin," World Development, Elsevier, vol. 77(C), pages 115-128.
    • Handle: RePEc:eee:wdevel:v:77:y:2016:i:c:p:115-128
    DOI: 10.1016/j.worlddev.2015.08.004
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    8. Kotu, B.H. & Abass, A. & Hoeschle-Zeledon, I. & Mbwambo, H. & Bekunda, M., 2018. "Returns to improved storage and potential impacts on household food security and income: evidence from Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276965, International Association of Agricultural Economists.
    9. Kadjo, Didier & Ricker-Gilbert, Jacob & Tahirou, Abdoulaye & Shively, Gerald & Baco, Nasser, 2016. "Adverse selection in informal maize markets in Benin," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249289, African Association of Agricultural Economists (AAAE).
    10. Channa, Hira & Ricker-Gilbert, Jacob & Feleke, Shiferaw T. & Abdoulaye, Tahirou, 2018. "Estimating the impact of a credit and technology intervention on farmer maize transactions: Insights from a RCT in Tanzania," 2018 Annual Meeting, August 5-7, Washington, D.C. 274235, Agricultural and Applied Economics Association.
    11. Hoffmann, Vivian & Jones, Kelly M., 2018. "Improving food safety on the farm: Experimental evidence from Kenya on agricultural incentives and subsidies as public health investments," IFPRI discussion papers 1746, International Food Policy Research Institute (IFPRI).
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    14. Nindi, Tabitha C. & Ricker-Gilbert, Jacob & Bauchet, Jonathan, 2020. "Identifying appropriate incentive mechanisms for smallholder farmers to exploit inter-temporal arbitrage opportunities for grain legumes: Experimental evidence from Malawi," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304424, Agricultural and Applied Economics Association.
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    16. Tanya E. Stathers & Sarah E. J. Arnold & Corinne J. Rumney & Clare Hopson, 2020. "Measuring the nutritional cost of insect infestation of stored maize and cowpea," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 285-308, April.
    17. Simmons, Vivian & Yu, Jisang, 2018. "Food Safety Regulations on Unobservable Qualities in Developing Countries," 2018 Annual Meeting, August 5-7, Washington, D.C. 273892, Agricultural and Applied Economics Association.
    18. Hoffmann, Vivian & Mutiga, Samuel K. & Harvey, Jagger W. & Nelson, Rebecca J. & Milgroom, Michael G., 2021. "Observability of food safety losses in maize: Evidence from Kenya," Food Policy, Elsevier, vol. 98(C).
    19. Xiaoyu Sun & Xiaoli Yang & Ruilong Zhang, 2022. "The Determinants of Grape Storage: Evidence from Grape Growers in China," Agriculture, MDPI, vol. 12(12), pages 1-14, December.
    20. McCoy, Stacy & Ricker-Gilbert, Jacob & Sall, Moussa & Bauchet, Jonathan, 2016. "How do traders and consumers in sub-Saharan Africa value maize moisture content? Evidence from an experimental auction in Senegal," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235911, Agricultural and Applied Economics Association.
    21. Martey, Edward & Goldsmith, Peter, 2020. "Heterogeneous demand for soybean quality," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 15(1), March.
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    23. Didier Kadjo & Jacob Ricker‐Gilbert & Gerald Shively & Tahirou Abdoulaye, 2020. "Food Safety and Adverse Selection in Rural Maize Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 412-438, June.

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