Finding missing markets (and a disturbing epilogue): Evidence from an export crop adoption and marketing intervention in Kenya

Nava Ashraf*, Xavier Giné, Dean Karlan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

65 Scopus citations

Abstract

Farmers may grow crops for local consumption despite more profitable export options. DrumNet, a Kenyan NGO that helps small farmers adopt and market export crops, conducted a randomized trial to evaluate its impact. DrumNet services increased production of export crops and lowered marketing costs, leading to a 32% income gain for new adopters. The services collapsed one year later when the exporter stopped buying from DrumNet because farmers could not meet new EU production requirements. Farmers sold to other middlemen and defaulted on their loans from DrumNet. Such experiences may explain why farmers are less likely to adopt export crops.

Original languageEnglish (US)
Pages (from-to)973-990
Number of pages18
JournalAmerican Journal of Agricultural Economics
Volume91
Issue number4
DOIs
StatePublished - 2009

Keywords

  • Export crop
  • Field experiment
  • Food safety standards

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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