Local Rice Market Development in Ghana: Experimental Sales of Standardized Premium Quality Rice to Retailers

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Abstract

<p>The establishment of price-quality connection is a necessary condition for an efficient market and is generally missing in the market of locally produced rice in Sub-Saharan Africa (SSA) including Ghana. Through a rice sales experiment in the markets in peri-urban Kumasi of Ghana, this study reveals that price-quality connection can be established by constant supply of standardized premium quality rice. This study also finds that retailers who adopt the connection perform better than those without it. This is empirical evidence that not only good quality local rice but also standardized quality information matter for market development and performance improvement.</p>

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