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Quality and Contracting in Agricultural Supply Chains
This is a joint work between Michigan University, Stanford University and EconInsight. In this project we study the transmission of price incentives for quality upgrading along agricultural value chains through an RCT in the Ethiopian honey sector. When output quality is imperfectly observable and verification is costly, asymmetric information may prevent a quality price premium from being passed upstream to farmers. We create variation in the cost of quality verification by randomizing access to laboratory testing services at different points along the value chain, and cross-randomize a contract farming intervention intended to shorten the chain by linking smallholder beekeepers directly to processors. The results will shed light on how improvements to public quality infrastructure (QI) systems may promote agricultural transformation and access to international markets, and how this interacts with the structure of agricultural value chains.















