Using social media for agricultural information dissemination: the role of informant-recipient homogeneity

Abstract

This study uses a randomised experiment targeting wheat producers in Ethiopia to examine the impact of providing market price information through Facebook on farmers’ sales behaviour. To identify the effect of informant homogeneity, we distinguished the informants’ nationality as either Ethiopian or foreign. Our findings reveal that when wheat selling prices were provided immediately after the harvest – when prices are typically at their lowest – only the information provided by Ethiopian informants led to a reduction in sales decisions and sales volume during that period. This information did not affect selling prices during the low-price period. However, analysis of data collected six months post-harvest shows that the selling price of wheat increased by approximately 14% due to information from Ethiopian informants. This suggests that farmers used the price information to delay sales until prices were higher, rather than negotiating with traders during the low-price period. Additionally, our heterogeneity analysis reveals that older, poorer, more socially isolated, and female farmers benefited more from domestic informant information, likely due to their previously limited access to information. These findings demonstrate the potential of social media for efficiently disseminating price information and highlight the importance of informant homogeneity in the effectiveness of such interventions.