Effect of market-level risk information on consumer willingness to pay for aflatoxin-safe food: evidence from unregulated food markets in Nigeria

Consumption of aflatoxin-contaminated food can pose severe health risks, yet many consumers in many low- and middle-income countries (LMICs) are unaware of their exposure. Moreover, most food markets in these countries are not regulated for food safety and lack credible mechanisms to signal food safety. This study investigates how market-specific exposure information influences consumers’ beliefs about the health risks of aflatoxin contamination and their exposure to it, as well as their willingness to pay for tested, certified, and untested maize flour. Laboratory tests of 150 maize flour samples collected at five informal markets, show that total aflatoxin levels range from less than 0.96 to 909.65 μg/kg, with 80–100% of market samples exceeding the regulatory limit. Using this market-specific exposure information, we conducted an incentive-compatible discrete choice experiment with a random information treatment among 370 consumers in Northern Nigeria. We find that compared to providing only generic health information, tailored, market-specific exposure information more effectively shifts consumers’ beliefs about exposure to unsafe food, resulting in a 120% discount for untested maize flour. Compared with no information, market-specific information resulted in a 113% discount for untested maize flour, a 45% discount for certified maize flour, and a 24.12% price premium for tested maize flour. Findings underscore the potential of market-specific information to mitigate consumer exposure to food safety risks, promote safer food markets, and inform food safety policies in LMICs.