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Nutrition-Based Incentives in Dairy Contract Farming in Northern Senegal

Author

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  • Tanguy Bernard
  • Melissa Hidrobo
  • Agnes Le Port
  • Rahul Rawat

Abstract

In developing countries contract farming faces numerous challenges that many times lead to its failure. Innovations that help overcome the difficulties of contracting with a large pool of small farmers in such settings can enhance the viability of such schemes. We use a randomized control trial design combined with high frequency data to investigate the impact of adding a nutrition-based incentive in contracts between a Senegalese dairy processing factory and its semi-nomadic milk suppliers. The incentive rewarded suppliers for consistent milk deliveries with daily delivery of a micro-nutrient fortified yogurt for each young child in corresponding households. Findings show large and significant impacts on the frequency and amount of milk delivered, albeit limited to the dry season. We also find larger impacts on milk deliveries when contracts are managed by women.

Suggested Citation

  • Tanguy Bernard & Melissa Hidrobo & Agnes Le Port & Rahul Rawat, 2019. "Nutrition-Based Incentives in Dairy Contract Farming in Northern Senegal," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 404-435.
    • Handle: RePEc:oup:ajagec:v:101:y:2019:i:2:p:404-435.
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    File URL: http://hdl.handle.net/10.1093/ajae/aay036
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    Cited by:

    1. Mark Treurniet, 2021. "The Potency of Quality Incentives: Evidence from the Indonesian Dairy Value Chain," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1661-1678, October.
    2. Betelhem M. Negede & Hugo De Groote & Bart Minten & Maarten Voors, 2024. "Does access to improved grain storage technology increase farmers' welfare? Experimental evidence from maize farming in Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 137-152, February.
    3. Hoel, Jessica B. & Hidrobo, Melissa & Bernard, Tanguy & Ashour, Maha, 2021. "What do intra-household experiments measure? Evidence from the lab and field," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 337-350.
    4. Zhanwen Shi & Erbao Cao, 2020. "Contract farming problems and games under yield uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1210-1238, October.
    5. Shi, Zhanwen & Cao, Erbao, 2020. "Contract farming problems and games under yield uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    6. Mohamed Abouaziza, 2022. "Farmer constraints and relational contracts: evidence from agricultural value chains in East Africa," Economics PhD Theses 0122, Department of Economics, University of Sussex Business School.

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