Tanguy Bernard

Buyers’ response to third-party quality certification: Theory and evidence from Ethiopian wheat traders

When quality attributes of a product are not directly observable, third-party certification (TPC) enables buyers to purchase the quality they are most interested in and reward sellers accordingly. Beyond product characteristics, buyers’ use of TPC services also depends on market conditions. We study the introduction of TPC in typical smallholder-based agriculture value chains of low-income countries, where traders must aggregate products from many small-scale producers before selling in bulk to downstream processors, and where introduction of TPC services has oftentimes failed. We develop a theoretical model identifying how different market conditions affect traders’ choice to purchase quality-certified output from farmers. Using a purposefully designed lab-in-the-field experiment with rural wheat traders in Ethiopia, we find mixed support for the model’s prediction: traders’ willingness to specialize in certified output does increase with the share of certified wheat in the market, and this effect is stronger in larger markets. It, however, does not decrease with the quality of uncertified wheat in the market. We further analyze conditions where traders deviate from the theoretically optimal behavior and discuss implications for future research and public policies seeking to promote TPC in smallholder-based food value-chains.

Accelerating technical change through ICT: Evidence from a video-mediated extension experiment in Ethiopia

Despite enthusiasm around applications of information and communications technologies (ICTs) to smallholder agriculture in many lower-income countries, there are still many questions on the effectiveness of ICT-based approaches. This study assesses the impacts of video-mediated agricultural extension service provision on farmers’ adoption of improved agricultural technologies and practices in Ethiopia using data from a two-year randomized experiment. Our results show that the video-mediated extension approach significantly increases uptake of recommended technologies and practices by improving extension access and farmer knowledge. Specifically, we find that video-mediated extension reaches a wider audience than the government’s conventional extension approach and leads to higher levels of farmer understanding and uptake of the subject technologies in those locations randomly assigned to the program. While our results also point to greater extension access and greater knowledge among female spouses in locations where both male and female spouses were targeted by the program, we do not find clear evidence that a more inclusive approach translates into higher uptake of the subject technologies. Finally, we find that the video-mediated approach becomes less costly as the scale of operation increases.

Cheap talk and coordination in the lab and in the field: Collective commercialization in Senegal