Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya

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, l...

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Bibliographic Details
Published inAmerican Journal of Agricultural Economics Vol. 91; no. 4; pp. 973 - 990
Main Authors Ashraf, Nava, Karlan, Dean S, Gine, Xavier
Format Journal Article
LanguageEnglish
Published Agricultural and Applied Economics Association 2009
SeriesAmerican Journal of Agricultural Economics
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Summary: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. Copyright 2009, Oxford University Press.