TY - JOUR
T1 - PICS or poly sack
T2 - Traders’ willingness to invest in storage protection technologies
AU - Martey, Edward
AU - Maxwell Etwire, Prince
AU - Mohammed Suraj, Mustapha
AU - Goldsmith, Peter
N1 - This study applies a simple financial model to compare the profitability of selected grain storage protection technologies (PICS and Poly sacks) in Ghana. To address the objectives, market survey data of soybean traders who represent a section of the soybean supply chain was used. Per the model, the price seasonality for profitable soybean storage was estimated by accounting for costs related to storage (protectants, maintenance, supervision, and labor), the opportunity cost of capital, and storage technologies (PICS and Poly sacks). Results indicated that the profitability associated with poly sacks was higher than the PICS bags over the entire support of seasonal harvest prices and consistent across the different trader types. Secondly, less than 20% of the traders were willing to invest in storage protection technologies since the value of their storage losses is higher than the value of the investment cost.The data for this study was obtained from the Soybean Innovation Lab who received support from the USAID (AID-OAA-L-14-00001) (Goldsmith as the Principal Investigator) and the ADMI Institute for the Prevention of Postharvest Loss at the University of Illinois at Urbana Champaign (Edward Martey as the Principal Investigator). The contents are the responsibility of the authors and do not necessarily reflect the views of the USAID or the United States government and the ADMI Institute for the Prevention of Postharvest Loss.
PY - 2023/12
Y1 - 2023/12
N2 - This study applies a simple financial model to compare the profitability of selected grain storage protection technologies (PICS and Poly sacks) in Ghana. To address the objectives, market survey data of soybean traders who represent a section of the soybean supply chain was used. Per the model, the price seasonality for profitable soybean storage was estimated by accounting for costs related to storage (protectants, maintenance, supervision, and labor), the opportunity cost of capital, and storage technologies (PICS and Poly sacks). Results indicated that the profitability associated with poly sacks was higher than the PICS bags over the entire support of seasonal harvest prices and consistent across the different trader types. Secondly, less than 20% of the traders were willing to invest in storage protection technologies since the value of their storage losses is higher than the value of the investment cost.
AB - This study applies a simple financial model to compare the profitability of selected grain storage protection technologies (PICS and Poly sacks) in Ghana. To address the objectives, market survey data of soybean traders who represent a section of the soybean supply chain was used. Per the model, the price seasonality for profitable soybean storage was estimated by accounting for costs related to storage (protectants, maintenance, supervision, and labor), the opportunity cost of capital, and storage technologies (PICS and Poly sacks). Results indicated that the profitability associated with poly sacks was higher than the PICS bags over the entire support of seasonal harvest prices and consistent across the different trader types. Secondly, less than 20% of the traders were willing to invest in storage protection technologies since the value of their storage losses is higher than the value of the investment cost.
KW - Ghana
KW - Price seasonality
KW - Soybean
KW - Storage investment
KW - Storage protection technologies
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U2 - 10.1016/j.jafr.2023.100691
DO - 10.1016/j.jafr.2023.100691
M3 - Article
AN - SCOPUS:85162860649
SN - 2666-1543
VL - 14
JO - Journal of Agriculture and Food Research
JF - Journal of Agriculture and Food Research
M1 - 100691
ER -