Selling at the farmgate or traveling to market
Using detailed survey data from Uganda, this article examines whether coffee producers sell to itinerant traders or directly to markets, where they can get a higher price but must incur a transport cost. We find that selling to the market is more likely when the quantity sold is large and the market...
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| Veröffentlicht in: | American journal of agricultural economics 2005-08, Vol.87 (3), p.717-734 |
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| container_title | American journal of agricultural economics |
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| creator | Fafchamps, Marcel Hill, Ruth Vargas |
| description | Using detailed survey data from Uganda, this article examines whether coffee producers sell to itinerant traders or directly to markets, where they can get a higher price but must incur a transport cost. We find that selling to the market is more likely when the quantity sold is large and the market is close by. Wealthy farmers are less likely to sell to the market, possibly because the shadow value of their time is higher. But if they have a large quantity of coffee for sale, they are more likely to sell it to the market. They are also more likely to travel to a distant market. These findings are consistent with their better ability to pay for public transportation. We find no evidence that the decision to sell at the farmgate is driven by a self-control motive. |
| doi_str_mv | 10.1111/j.1467-8276.2005.00758.x |
| format | Article |
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We find that selling to the market is more likely when the quantity sold is large and the market is close by. Wealthy farmers are less likely to sell to the market, possibly because the shadow value of their time is higher. But if they have a large quantity of coffee for sale, they are more likely to sell it to the market. They are also more likely to travel to a distant market. These findings are consistent with their better ability to pay for public transportation. 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| ispartof | American journal of agricultural economics, 2005-08, Vol.87 (3), p.717-734 |
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| language | eng |
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| source | Business Source Complete; JSTOR Archive Collection A-Z Listing; Wiley Online Library All Journals |
| subjects | Africa Agricultural commodities Agricultural cooperatives Agricultural economics agricultural markets agricultural products Agriculture Cash Children Coffea arabica Coffee coffee (beverage) Collective farms commodity exchange Convenience stores Costs Crop economics Crops decision making Developing countries econometric models Exports farm income Farmers Farmers markets Income shares LDCs Low income groups Market mathematical models O130 Opportunity costs profitability Public transportation Q120 Sales Self control simulation models Studies Timber traders Transaction costs Transport transport costs transportation Travel Wealth |
| title | Selling at the farmgate or traveling to market |
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