Vivian Hoffmann, IFPRI

Safe food for me – and maybe for you: Upside risk, premium market access, and producer demand for a food safety technology
Friday 22 October 2021 à 14 h 30 to à 16 h 00
Location
Off-campus address: 
via Zoom
Registration
Registration required: 
No
Cost to attend: 
Free of charge
Event language: 
Intended audience: 

Abstract: Premium prices conditional on food safety attributes are often proposed as a way to increase food safety for marketed produce in developing countries, where regulatory capacity is weak. However, food safety premiums supported by domestic markets in such settings may be too low to cover costs of compliance. On the other hand, semi-subsistence farmers who consume a portion of the food they produce derive a direct health benefit from improved safety. We present a simple model showing that a modest quality premium that is too low to affect adoption on the extensive margin can harness upside production risk by providing subsistence farmers a high-value market for their excess high-quality output. Through a randomized trial among maize farmers in Kenya, we find, in line with model predictions, that a premium for food safety below the expected cost of compliance for most farmers increases adoption of an food safety enhancing technology.
 

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