Food quality in domestic markets of developing economies:A comparative study of two countries

Anneleen Vandeplas and Bart Minten ()

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: Food quality has become an important determinant of success in global food trade and growers for international markets have to continuously adjust to buyers’ requirements. It is however not clear to what extent there is a demand for food quality - and how much buyers are willing to pay for it - in domestic food markets of developing economies. Based on unique comparable price and trader data in a poor country in Africa (Madagascar) and an emerging economy in Asia (India), we compare food quality and quality’s pricing. We find significantly better quality and higher quality premiums (using revealed as well as stated preference methods) in India than in Madagascar. We explain these observed differences through a simple theoretical model, solely based on large average income gaps between the two countries.

Keywords: food quality; quality premiums; development (search for similar items in EconPapers)
JEL-codes: L15 Q12 Q13 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-afr and nep-agr
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Citations: View citations in EconPapers (4)

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http://www.econ.kuleuven.be/licos/publications/dp/dp289.pdf

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Journal Article: Food quality in domestic markets of developing economies: a comparative study of two countries (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:28911

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