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Agricultural Markets in Benin and Malawi

Author

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  • Marcel Fafchamps
  • Eleni Gabre-Madhin
  • IFPRI

Abstract

Based on original trader surveys, this paper examines how agricultural traders operate in Benin and Malawi. Results indicate that the largest transactions costs are search and transport. The use of modern technology is limited. Search methods rely principally on personal visits by the trader. Quality control requires the presence of the trader at the time of purchase. This raises costs as the trader has to travel a lot, and makes it difficult for trading enterprises to grow. Since enterprises remain very small, personal transport and search time represents a non-negligible share of marketing costs.

Suggested Citation

  • Marcel Fafchamps & Eleni Gabre-Madhin & IFPRI, 2007. "Agricultural Markets in Benin and Malawi," Economics Series Working Papers GPRG-WPS-068, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:gprg-wps-068
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    References listed on IDEAS

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    Cited by:

    1. David-Benz, Hélène & Andriandralambo, Norontsoa & Soanjara, Helgina & Chimirri, Chiara & Rahelizatovo, Noro & Rivolala, Bezaka, 2016. "Improving access to market information: a driver of change in marketing strategies for small producers?," 149th Seminar, October 27-28, 2016, Rennes, France 245073, European Association of Agricultural Economists.
    2. Nkendah, Robert, 2013. "Estimating the informal cross-border trade of agricultural and horticultural commodities between cameroon and its CEMAC neighbours," Food Policy, Elsevier, vol. 41(C), pages 133-144.
    3. Blume, Lawrence E. & Easley, David & Kleinberg, Jon & Tardos, Éva, 2009. "Trading networks with price-setting agents," Games and Economic Behavior, Elsevier, vol. 67(1), pages 36-50, September.
    4. Robinson, Amanda Lea, 2016. "Internal Borders: Ethnic-Based Market Segmentation in Malawi," World Development, Elsevier, vol. 87(C), pages 371-384.
    5. Okello, Julius J. & Kirui, Oliver K. & Gitonga, Zachary M. & Njiraini, Georgina W. & Nzuma, Jonathan M., 2014. "Determinants of Awareness and Use ICT-based Market Information Services in Developing-Country Agriculture: The Case of Smallholder Farmers in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-20, August.
    6. Smith A. R. Dossou & Jean Adanguidi & Augustin K. N. Aoudji & Rodrigue C. Gbedomon, 2022. "Promotion of beekeeping: Insights from an empirical analysis of three honey value chains in Benin," Natural Resources Forum, Blackwell Publishing, vol. 46(1), pages 39-59, February.
    7. Aoudji, Augustin K.N. & Adégbidi, Anselme & Agbo, Valentin & Atindogbé, Gilbert & Toyi, Mireille S.S. & Yêvidé, Armand S.I. & Ganglo, Jean C. & Lebailly, Philippe, 2012. "Functioning of farm-grown timber value chains: Lessons from the smallholder-produced teak (Tectona grandis L.f.) poles value chain in Southern Benin," Forest Policy and Economics, Elsevier, vol. 15(C), pages 98-107.
    8. Tharakan, Joe & Lefèvre, Mélanie, 2011. "Intermediaries, transport costs and interlinked transactions," CEPR Discussion Papers 8615, C.E.P.R. Discussion Papers.
    9. Wainaina, Priscilla W. & Okello, Julius J. & Nzuma, Jonathan M., 2014. "Blessing or Evil? Contract Farming, Smallholder Poultry Production and Household Welfare in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(4), pages 1-22, November.
    10. Kopp, Thomas & Bümmer, Bernhard, 2015. "Moving rubber to a better place - and extracting rents from credit constrained farmers along the way," EFForTS Discussion Paper Series 9, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    11. Tara Mitchell, 2016. "Quality Observability and the Structure of Agricultural Supply Chains," Trinity Economics Papers tep1316, Trinity College Dublin, Department of Economics.
    12. Andrew Dillon & Nicoló Tomaselli, 2024. "Making Markets: Experiments in Agricultural Input Market Formation," Working Papers - Economics wp2024_18.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    13. Issa, F.O. & Fapojuwo, O.E. & Bidoli, T.D., 2011. "Improving agricultural marketing efficiency through the commodity exchange system in Nigeria: a review," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 2(1).
    14. Bekele Shiferaw & Gideon Obare & Geoffrey Muricho, 2008. "Rural market imperfections and the role of institutions in collective action to improve markets for the poor," Natural Resources Forum, Blackwell Publishing, vol. 32(1), pages 25-38, February.

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