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Consumers' Willingness to Pay for Genetically Modified Foods in Kenya

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  • Kimenju, Simon Chege
  • De Groote, Hugo

Abstract

A survey of 600 consumers was conducted in Nairobi to determine attitudes and willingness to pay (WTP) for GM maize meal. WTP was estimated using the double-bounded logit model. Overall, 38% are aware of GM crops. Most consumers believe in the technology's positive impacts, but are concerned about environmental and health risks. Majority (68%) would buy GM maize meal at the price of their favourite maize meal brand. The mean WTP for GM maize meal is KShs 58 for a 2kg packet, a premium of 13.7 % over mean average price of favourite brands. WTP is influenced more by subjective than socioeconomic characteristics.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24504.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24504

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Keywords: GMO; biotechnology; consumer; Africa; maize; Consumer/Household Economics; D12; C25; Q16;

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  1. Curtis, Kynda R. & Wahl, Thomas I. & McCluskey, Jill J., 2003. "Consumer Acceptance of Genetically Modified Food Products in the Developing World," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57858, Australian Agricultural and Resource Economics Society.
  2. Odhiambo, Benjamin & Bergvinson, David & Mugo, Stephen & De Groote, Hugo, 2004. "Debunking The Myths Of Gm Crops For Africa: The Case Of Bt Maize In Kenya," 2004 Annual meeting, August 1-4, Denver, CO 19918, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
  4. Wanki Moon & Siva K. Balasubramanian, 2004. "Public Attitudes toward Agrobiotechnology: The Mediating Role of Risk Perceptions on the Impact of Trust, Awareness, and Outrage," Review of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 26(2), pages 186-208.
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Cited by:
  1. Julie A. Caswell & Siny Joseph, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Food Marketing Policy Center Research Reports 097, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  2. Manuel Thiel & Rainer Marggraf, 2009. "Gentechnik oder nicht Gentechnik - Bestimmungsgründe der Wahl von (nicht) gentechnisch veränderten Produkten," Yearbook of Socioeconomics in Agriculture, Swiss Society for Agricultural Economics and Rural Sociology, Swiss Society for Agricultural Economics and Rural Sociology, vol. 2(1), pages 35-58.
  3. Tonsor, Glynn T. & Wolf, Christopher & Olynk, Nicole, 2009. "Consumer voting and demand behavior regarding swine gestation crates," Food Policy, Elsevier, Elsevier, vol. 34(6), pages 492-498, December.
  4. Otoo, Miriam & Fulton, Joan R. & Ibro, Germaine, 2010. "Potential Demand for a New Value-Added Cowpea Product as Measured by the Willingness-to-Pay for Cowpea Flour in West Africa," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado, Agricultural and Applied Economics Association 61434, Agricultural and Applied Economics Association.
  5. Morawetz, Ulrich B. & De Groote, Hugo & Kimenju, Simon Chege, 2011. "Improving the Use of Experimental Auctions in Africa: Theory and Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 36(2), August.
  6. Rodríguez-Entrena, Macario & Salazar-Ordóñez, Melania & Sayadi, Samir, 2013. "Applying partial least squares to model genetically modified food purchase intentions in southern Spain consumers," Food Policy, Elsevier, Elsevier, vol. 40(C), pages 44-53.
  7. Owusu, Victor, 2012. "Assessing Consumer Willingness to Pay a Premium for Organic Food Product: Evidence from Ghana," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 123394, International Association of Agricultural Economists.
  8. Ngigi, Marther W. & Okello, Julius Juma & Lagerkvist, Carl Johan & Karanja, Nancy & Mburu, John G., 2010. "Assessment of developing-country urban consumers’ willingness to pay for quality of leafy vegetables: The case of middle and high income consumers in Nairobi, Kenya," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Afri 96191, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
  9. De Groote, Hugo & Kimenju, Simon Chege, 2008. "Comparing consumer preferences for color and nutritional quality in maize: Application of a semi-double-bound logistic model on urban consumers in Kenya," Food Policy, Elsevier, Elsevier, vol. 33(4), pages 362-370, August.
  10. Owusu, Victor & Owusu, Michael Anifori, 2010. "Measuring Market Potential for Fresh Organic Fruit and Vegetable in Ghana," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Afri 95955, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
  11. Tonsor, Glynn T. & Wolf, Christopher A., 2011. "On mandatory labeling of animal welfare attributes," Food Policy, Elsevier, Elsevier, vol. 36(3), pages 430-437, June.
  12. Jeffrey Vitale & Marc Ouattarra & Gaspard Vognan, 2011. "Enhancing Sustainability of Cotton Production Systems in West Africa: A Summary of Empirical Evidence from Burkina Faso," Sustainability, MDPI, Open Access Journal, vol. 3(8), pages 1136-1169, July.
  13. Fernandez-Cornejo, Jorge & Livingston, Michael & Mitchell, Lorraine & Wechsler, Seth, 2014. "Genetically Engineered Crops in the United States," Economic Research Report, United States Department of Agriculture, Economic Research Service 164263, United States Department of Agriculture, Economic Research Service.
  14. Astrid Dannenberg & Sara Scatasta & Bodo Sturm, 2009. "Keine Chance für genetisch veränderte Lebensmittel in Deutschland? Eine experimentelle Analyse von Zahlungsbereitschaften," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(2), pages 214-234, 05.
  15. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, Elsevier, vol. 42(C), pages 58-70.
  16. Michele Graffeo & Lucia Savadori & Katya Tentori & Nicolao Bonini & Rino Rumiati, 2009. "Consumer decision in the context of a food hazard: the effect of commitment," Mind and Society: Cognitive Studies in Economics and Social Sciences, Fondazione Rosselli, Fondazione Rosselli, vol. 8(1), pages 59-76, June.
  17. Falck-Zepeda, Jose Benjamin & Gruère, Guillaume P. & Sithole-Niang, Idah (ed.), 2013. "Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-795-1.
  18. Takeshima, Hiroyuki, 2011. "Distribution of welfare gains from GM cassava in Uganda across different population groups and market margins," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, African Association of Agricultural Economists, vol. 6(1), March.
  19. Bett, Charles & Ouma, James Okuro & Groote, Hugo De, 2010. "Perspectives of gatekeepers in the Kenyan food industry towards genetically modified food," Food Policy, Elsevier, Elsevier, vol. 35(4), pages 332-340, August.

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