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

Posted: 8 Oct 2009

See all articles by Nava Ashraf

Nava Ashraf

Harvard University - Business School (HBS)

Xavier Giné

World Bank - Development Research Group (DECRG)

Dean S. Karlan

Northwestern University - Kellogg School of Management; Yale University; Innovations for Poverty Action; Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 4 versions of this paper

Date Written: 2009-03

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.

Suggested Citation

Ashraf, Nava and Gine, Xavier and Karlan, Dean S., Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya (2009-03). American Journal of Agricultural Economics, Vol. 91, Issue 4, pp. 973-990, November 2009, Available at SSRN: https://ssrn.com/abstract=1483982 or http://dx.doi.org/10.1111/j.1467-8276.2009.01319.x

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