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What is the value of rice fragrance? Consumer evidence from Senegal

Author

Listed:
  • Diagne, Mandiaye
  • Demont, Matty
  • Ndour, Maïmouna

Abstract

Urban demand for fragrant rice is increasing rapidly in Senegal, but little is known about the value of rice fragrance and the drivers of its demand. We conducted experimental auctions in Dakar to elicit urban consumers’ willingness to upgrade from non-fragrant to fragrant rice and their willingness to pay for domestic versus imported fragrant rice, and assessed the drivers of demand for rice fragrance through a double-hurdle model. The average value of rice fragrance is estimated to be around US$ 0.12 kg-1, as suggested by the 20% price premiums consumers are willing to pay on top of the price of non-fragrant rice. These price premiums further increase to 35% for consumers who express positive buying intentions towards domestic fragrant rice. The value of rice fragrance is found to be driven by factors such as ethnicity, household size, and awareness of fragrance and local fragrant rice.

Suggested Citation

  • Diagne, Mandiaye & Demont, Matty & Ndour, Maïmouna, 2017. "What is the value of rice fragrance? Consumer evidence from Senegal," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 12(2), June.
  • Handle: RePEc:ags:afjare:258603
    DOI: 10.22004/ag.econ.258603
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    File URL: http://ageconsearch.umn.edu/record/258603/files/1.%20Diagne%20et%20al..pdf
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    References listed on IDEAS

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    1. Demont, Matty & Fiamohe, Rose & Kinkpé, A. Thierry, 2017. "Comparative Advantage in Demand and the Development of Rice Value Chains in West Africa," World Development, Elsevier, vol. 96(C), pages 578-590.
    2. Coulibaly, Jeanne Y. & Tebila, Nakelse & Diagne, Aliou, 2015. "Reducing Rice Imports in Côte d’Ivoire: Is a Rise in Import Tariff the Solution?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(3), pages 1-19, December.
    3. Akoa Etoa, Josephine Mireille & Ndindeng, Sali Atanga & Owusu, Eric Sarpong & Woin, Noe & Bindzi, Boniface & Demont, Matty, 2016. "Consumer valuation of an improved rice parboiling technology: Experimental evidence from Cameroon," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(1), pages 1-24, March.
    4. Coulibaly, Jeanne Y. & Tebila, Nakelse & Diagne, Aliou, 2015. "Reducing Rice Imports in Côte d'Ivoire: Is a Rise in Import Tariff the Solution?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 195-213, December.
    5. Demont, Matty & Rutsaert, Pieter & Ndour, Maimouna & Verbeke, Wim, 2013. "Reversing Urban Bias in African Rice Markets: Evidence from Senegal," World Development, Elsevier, vol. 45(C), pages 63-74.
    6. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588.
    7. Pamela S. Haines & Barry M. Popkin & David K. Guilkey, 1988. "Modeling Food Consumption Decisions as a Two-Step Process," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 543-552.
    8. repec:ags:afjare:225651 is not listed on IDEAS
    9. Matty Demont & Pieter Rutsaert & Maïmouna Ndour & Wim Verbeke & Papa A. Seck & Eric Tollens, 2013. "Experimental auctions, collective induction and choice shift: willingness-to-pay for rice quality in Senegal-super- †," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 40(2), pages 261-286, March.
    10. Minten, Bart & Murshid, K.A.S. & Reardon, Thomas, 2013. "Food Quality Changes and Implications: Evidence from the Rice Value Chain of Bangladesh," World Development, Elsevier, vol. 42(C), pages 100-113.
    11. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    12. Robert T. Jensen & Nolan H. Miller, 2008. "Giffen Behavior and Subsistence Consumption," American Economic Review, American Economic Association, vol. 98(4), pages 1553-1577, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Demont, Matty & Fiamohe, Rose & Kinkpé, A. Thierry, 2017. "Comparative Advantage in Demand and the Development of Rice Value Chains in West Africa," World Development, Elsevier, vol. 96(C), pages 578-590.
    2. Abdulai Adams & Emmanuel Tetteh Jumpah & Kehinde Damilola Ilesanmi & Hajei Douri Bennin, 2019. "Analysis of parboiled rice processing in northern region of Ghana: determinants, constraints and opportunities," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(2), pages 284-297, December.
    3. Bairagi, Subir K. & Mohanty, Samarendu & Ynion, Jhoanne & Demont, Matty, 2017. "Determinants of Consumer Preferences for Rice Attributes: Evidence from South and Southeast Asia," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258384, Agricultural and Applied Economics Association.
    4. My, Nguyen H.D. & Demont, Matty & Van Loo, Ellen J. & de Guia, Annalyn & Rutsaert, Pieter & Tuan, Tran Huu & Verbeke, Wim, 2018. "What is the value of sustainably-produced rice? Consumer evidence from experimental auctions in Vietnam," Food Policy, Elsevier, vol. 79(C), pages 283-296.

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