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    Does market price information change what farmers get paid?

    Does market price information change what farmers get paid?

    A controlled study across four districts testing whether weekly maize and soya prices changed how and at what price farmers sold.

    Case Study · 2019

    In 2018 the International Food Policy Research Institute approached ACE with an idea to look at the impact of market information. The study was conducted during the 2019 marketing season in four districts: Mchinji, Ntchisi, Dowa and Kasungu.

    Two farmer organisations were selected in each district. None had worked with ACE before. Each district was assigned an intervention group, receiving weekly market prices for soya and maize, and a control group receiving nothing.

    The study found that for the intervention group, the share of sales of both soya and maize through structured markets increased more than for the control group. The intervention group also saw a greater increase in the prices at which they sold.

    It was therefore concluded that receiving market price information is beneficial to farmers when making decisions about their trades. Honesty requires noting the limitation: while anecdotal evidence showed higher prices and positive impact, the conclusions of the study were statistically insignificant and therefore not conclusive.

    Where

    Mchinji, Ntchisi, Dowa and Kasungu

    Source

    International Food Policy Research Institute (IFPRI)

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