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Are Consumers in Developing Countries Willing to Pay More for Micronutrient-Dense Biofortified Foods? Evidence from a Field Experiment in Uganda

Author

Listed:
  • Shyamal Chowdhury
  • J. V. Meenakshi
  • Keith I. Tomlins
  • Constance Owori

Abstract

Vitamin A deficiency is a major health problem in Africa and in many other developing countries. Biofortified staple crops that are high in pro-vitamin A have the potential to reduce the prevalence of vitamin A deficiency. Using a choice experiment with the real product in Uganda, we quantify the magnitude of the premium or discount in consumers' willingness-to-pay (WTP) that may be associated with it. Results suggest that taste plays an important role in consumer acceptance, and the provision of nutrition information does translate into substantial premiums for the biofortified variety. There is a substantial hypothetical bias in the WTP for the new varieties, and while cheap talk mitigates this bias, it does not eliminate it. Copyright 2010, Oxford University Press.

Suggested Citation

  • Shyamal Chowdhury & J. V. Meenakshi & Keith I. Tomlins & Constance Owori, 2010. "Are Consumers in Developing Countries Willing to Pay More for Micronutrient-Dense Biofortified Foods? Evidence from a Field Experiment in Uganda," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 83-97.
    • Handle: RePEc:oup:ajagec:v:93:y:2010:i:1:p:83-97
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq121
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    Cited by:

    1. Asare-Marfo, Dorene & Birol, Ekin & Karandikar,Bhushana & Roy, Devesh, 2011. "A latent class approach to investigating farmer demand for biofortified staple food crops in developing countries: The case of high-iron pearl millet in Maharashtra, India," HarvestPlus working papers 7, International Food Policy Research Institute (IFPRI).
    2. Ewa Zawojska & Mikołaj Czajkowski, 2015. "Re-examining empirical evidence on contingent valuation – Importance of incentive compatibility," Working Papers 2015-08, Faculty of Economic Sciences, University of Warsaw.
    3. Meginnis, Keila & Hanley, Nick & Mujumbusi, Lazaaro & Lamberton, Poppy H.L., 2020. "Non-monetary numeraires: Varying the payment vehicle in a choice experiment for health interventions in Uganda," Ecological Economics, Elsevier, vol. 170(C).
    4. Fifer, Simon & Rose, John M., 2016. "Can you ever be certain? Reducing hypothetical bias in stated choice experiments via respondent reported choice certaintyAuthor-Name: Beck, Matthew J," Transportation Research Part B: Methodological, Elsevier, vol. 89(C), pages 149-167.
    5. Mwiti, Florine Karuru & Okelo, Julius & Munei, Kimpei, "undated". "Assessment Of Willingness To Pay For Quality Sweetpotato Planting Materials: The Case Of Smallholder Farmers In Tanzania," Dissertations and Theses 269713, University of Nairobi, Department of Agricultural Economics.
    6. Banerji, A. & Hamukwala, Priscilla & Manyong, Victor & Meenakshi, J. V. & Mungoma, Catherine & Tomlins, Keith & Zulu, Rodah, 2010. "Consumer acceptance of provitamin A orange maize in rural Zambia:," HarvestPlus working papers 4, International Food Policy Research Institute (IFPRI).
    7. Moser, Riccarda & Raffaelli, Roberta & Notaro, Sandra, 2010. "The Role Of Production Methods In Fruit Purchasing Behaviour: Hypothetical Vs Actual Consumers’ Preferences And Stated Minimum Requirements," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116426, European Association of Agricultural Economists.

    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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