Promoting Low-Cost, Chemical-Free Grain Storage
Partners: Purdue University – Purdue Improved Crop Storage (PICS); Bell Industries Limited
Dates of service: February 2016 – July 2016
IDinsight services: Decision-focused evaluation and willingness to pay study
IDinsight contacts: Patricia Pina
Farmers are losing a significant portion of their crops (and therefore their income) because of poor storage and pest infestation. While the technology for improved storage already exists, it remains largely unused.
The Purdue Improved Crop Storage (PICS) project at Purdue University developed low-cost, hermetic grain-storage bags that prevent pest damage during crop storage without having to use chemicals. These bags allow farmers to consume or sell crops later in the season when prices might be higher, increasing food security and offering a healthier alternative to chemical pesticide.
The PICS bag was introduced to the Kenyan market in 2013 in partnership with Bell Industries Limited. While it is the current Kenyan market leader for this technology, market penetration remains at less than 1% of the total potential market for grain storage in Kenya.
As part of a learning partnership with the Bill & Melinda Gates Foundation, IDinsight worked with the PICS project and Bell Industries to test different strategies to increase farmers’ awareness and demand for the bags.
IDinsight conducted an evaluation that compared the effectiveness of different media messages at generating interest in the PICS bags among smallholder farmers in western Kenya. Individual farmers were randomly given a short textual, audio, or video informational message about the PICS bags. They were then asked for the highest price they were willing to pay for the bag using the Becker-DeGroot-Marschak method, an incentive-compatible procedure used in experimental economics to measure willingness to pay. IDinsight also estimated the demand curve for the PICS bag based on the willingness to pay exercise, which can be used to determine optimal pricing of the bag.
IDinsight found that the different media were equally effective at generating farmer interest and willingness to pay for the bags, and that the price elasticity of the bag was high. Therefore, price reductions could lead to significant increases in sales volumes.