Measuring rural consumers’ willingness to pay for quality labels using experimental auctions: the case of aflatoxin‐free maize in Kenya |
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Authors: | Hugo De Groote Clare Narrod Simon C Kimenju Charles Bett Rosemarie P B Scott Marites M Tiongco Zachary M Gitonga |
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Institution: | 1. International Maize and Wheat Improvement Centre (CIMMYT), Nairobi, Kenya;2. University of Maryland, Joint Institute for Food Safety and Applied Nutrition, College Park, MD;3. Kenya Agricultural and Livestock Research Organization (KALRO), Arid and Rangelands Research Institute, KALRO Katumani Research Centre, Machakos, Kenya;4. International Food Policy Research Institute (IFPRI), Washington, DC;5. De La Salle University, Manila |
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Abstract: | Aflatoxins are a common health hazard in tropical countries, especially in rural areas. New methods to reduce aflatoxin levels in food staples, as well as cheaper test methods, are being developed, but consumers’ willingness to pay (WTP) for these improvements is unknown. A survey was conducted with a representative sample of rural consumers (1,344 in total, 63% women) in all major maize‐production zones of Kenya. The survey included an experimental auction with maize products of different qualities. The results showed that many rural consumers were aware of aflatoxins, but few understood their health risks. Respondents were willing to pay a premium for maize tested for aflatoxins and labeled, but asked a high discount for maize that was visibly contaminated with moldy grain. The premium was higher for respondents with education and in regions with aflatoxicosis outbreaks. Knowledge of aflatoxins substantially reduced the overall WTP, but did not increase the WTP for tested maize. Welfare analysis indicates that mandatory testing would result in substantial benefits if the cost of testing can be lowered to below the premium. |
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Keywords: | D12 D61 I12 Aflatoxins Maize Kenya Willingness to pay Consumers Rural |
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