Farmers' Market Access: Investment Timing and Expansion Strategy of an Intermediary Under Uncertainty

Scientific conference (2012, March)

Intermediaries, transport costs and interlinked transactions

Conference (2011, December)

Intermediaries, transport costs and interlinked transactions

E-print/Working paper (2011)

Transport costs play a key role in agricultural markets in developing countries and are one of the causes of poverty amongst farmers that are geographically isolated. Another characteristic of ... [more ▼]

Transport costs play a key role in agricultural markets in developing countries and are one of the causes of poverty amongst farmers that are geographically isolated. Another characteristic of agricultural markets is that they often involve interlinked transactions. However, the existing theoretical literature on interlinked transactions does not take into account the existence of transport costs. This paper develops a model of input-output interlinked contracts between geographically dispersed farmers and a trader, whether this trader is for-profit or non-profit. We derive implications of imposing either uniform or mill pricing policies, as opposed to spatial price discrimination. Impact on profit, farmers' income, level of production, social welfare and regional disparities are investigated. [less ▲]

Intermediaries, transport costs and interlinked transactions

Scientific conference (2011, March)

Willingness-to-pay for local milk-based dairy products in Senegal

in Anales de Economía Aplicada 2010 (2010, June)

This paper aims to evaluate Senegalese consumers' willingness-to-pay (WTP) for local fresh milk-based products, in opposition to the ones produced with imported powder. Exploiting data from a choice-based ... [more ▼]

This paper aims to evaluate Senegalese consumers' willingness-to-pay (WTP) for local fresh milk-based products, in opposition to the ones produced with imported powder. Exploiting data from a choice-based-conjoint analysis conducted on 400 households in the region of Dakar, we evaluate the premium that consumers are willing to pay for fresh raw material (rather than powder) in the composition of sour milk. Based on an Ordered Probit Model, the results show evidence for a positive WTP for fresh raw material, which may be seen as a strong indication of preference for local products. This WTP greatly depends on the characteristics of the households. Wealthier households are willing to pay more than the medium households, while big households are ready to pay much less than the base category ones. Obviously, some niche markets exist, that producers may target to sell the local milk-based dairy products. However, more information has to be provided about the composition of dairy products, as consumers are not currently able to distinguish both types of raw material, even if they are willing to pay more for one of them. In spite of some restrictions about the presence of a potential "hypothetical bias" due to the nature of the data, this study gives a first insight of consumers' preferences for local milk-based dairy products. [less ▲]

Willingness-to-pay for local milk-based dairy products in Senegal

Conference (2010, May)

This paper aims to evaluate Senegalese consumers' willingness-to-pay (WTP) for local fresh milk-based products, in opposition to the ones produced with imported powder. Using data from a choice-based ... [more ▼]

This paper aims to evaluate Senegalese consumers' willingness-to-pay (WTP) for local fresh milk-based products, in opposition to the ones produced with imported powder. Using data from a choice-based-conjoint analysis conducted on 400 households in the region of Dakar, we evaluate the premium that consumers are willing to pay for fresh raw material (rather than powder) in the composition of sour milk. Based on an Ordered Probit Model, the results show evidence for a positive WTP for fresh raw material, which may be seen as a strong indication of preference for local products. This WTP greatly depends on the characteristics of the households. Wealthier households are willing to pay more than the medium households, while big households are ready to pay much less than the base category ones. Obviously, some niche markets exist, that producers may target to sell the local milk-based dairy products. However, more information has to be provided about the composition of dairy products, as consumers are not currently able to distinguish both types of raw material, even if they are willing to pay more for one of them. In spite of some restrictions about the presence of a potential "hypothetical bias" due to the nature of the data, this study gives a first insight of consumers' preferences for local milk-based dairy products. [less ▲]