Branding and agricultural value chains in developing countries: Insights from Bihar (India)

Local brands are rapidly gaining agricultural market share in developing countries. However, it is not well understood how they reshape agricultural value chains. In a detailed case study of the value chain of makhana in Bihar, we see the fast emergence - a doubling over 5 years - of more expensive packed and branded products. The effect on consumers is ambiguous. While the emergence of brands leads to increasing differentiation in retail markets, the brands in these settings provide however mostly incomplete or misleading information for the consumer and quality contained in branded bags is often lower than for loose products. We further also find that there are little direct benefits to the farmers from the presence of these brands. (C) 2012 Elsevier Ltd. All rights reserved.