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Accepted Paper:
A new approach to monitoring farmer prices: method and an application to Malawi
Robert Baulch
(RMIT University Vietnam)
Aubrey Jolex
(Innovations for Poverty Action)
Seng Kiong Kok
(RMIT Vietnam)
This paper proposes a new and relatively inexpensive approach to monitoring farmer prices in low-income countries involving crowdsourcing. An application to Malawi illustrates the approach's feasibility in settings where internet connectivity is limited but mobile phone coverage is reasonable.
Paper long abstract:
This paper proposes a new and relatively inexpensive approach to monitoring the prices farmers receive in low-income developing countries. This crowdsourcing approach involves broadcasting radio jingles inviting farmers to report the prices and locations at which they sold their crops to a toll-free call center, with weekly prizes to incentivize reporting. An application to Malawi illustrates the feasibility of this approach in settings where internet connectivity is limited but mobile phone coverage is reasonable. The vast majority of farmers reported selling their maize and soybeans to assemblers or small traders, and received substantially less than official minimum farmgate prices. Non-parametric analysis shows that farmer prices vary by bargaining power and buyer type but not by time to the point of sale. These findings may be explained by the fragmented and monopsonistic nature of food markets in Malawi, and by farmers' mode of transport to the point of sale.
(A full version of the paper is available on request.)