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Negede, B., De Groote, H., Minten, B., & Voors, M. (2024). Does access to improved grain storage technology increase farmers’ welfare? Experimental evidence from maize farming in Ethiopia. Journal Of Agricultural Economics, 75(1), 137-152. https://doi.org/10.1111/1477-9552.12546

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Abstract
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Seasonal price variability for cereals is two to three times higher in Africa than on the international reference market. Seasonality is even more pronounced when access to appropriate storage and opportunities for price arbitrage are limited. As smallholder farmers typically sell their production after harvest, when prices are low, this leads to lower incomes as well as higher food insecurity during the lean season, when prices are high. One solution to reduce seasonal stress is the use of improved storage technologies. Using data from a randomised controlled trial, in a major maize-growing region of Western Ethiopia, we study the impact of hermetic bags, a technology that protects stored grain against insect pests, so that the grain can be stored longer. Despite considerable price seasonality—maize prices in the lean season are 36% higher than after harvesting—we find no evidence that hermetic bags improve welfare, except that access to these bags allowed for a marginally longer storage period of maize intended for sale by 2 weeks. But this did not translate into measurable welfare gains as we found no changes in any of our welfare outcome indicators. This ‘near-null’ effect is due to the fact that maize storage losses in our study region are relatively lower than previous studies suggested—around 10% of the quantity stored—likely because of the widespread use of an alternative to protect maize during storage, for example a cheap but highly toxic fumigant. These findings are important for policies that seek to promote improved storage technologies in these settings.
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Journal
Journal of Agricultural Economics
Journal volume
75
Journal issue
1
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Place of Publication
United States of America
Publisher
Wiley-Blackwell
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CGIAR Initiatives

Initiative
Plant Health
Impact Area
Poverty reduction, livelihoods & jobs
Action Area
Resilient Agrifood Systems
Donor or Funder
CGIAR Research Programme on Policies, Institutions, and Markets (CRP-PIM)