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Consumer willingness to pay for rice fragrance: Evidence from Senegal


  • Diagne, Mandiaye
  • Demont, Matty
  • Ndour, Maimouna


In response to increasing urban consumer demand for fragrant rice, rice breeders have developed local, fragrant rice varieties in Senegal. We assess the drivers of demand for rice fragrance by eliciting urban consumers’ willingness to upgrade non-fragrant to fragrant rice and willingness to pay (WTP) for domestic versus imported fragrant rice. We conducted experimental auctions with 120 urban consumers in Dakar and analyzed WTP for rice fragrance through a double hurdle model. The results indicate that variables such as ethnicity, household size, and awareness of fragrance and local fragrant rice significantly affect consumers’ willingness to upgrade non-fragrant to fragrant rice. Urban consumers with positive buying intentions towards domestic fragrant rice are very likely to buy it and pay price premiums of 64 FCFA/kg. However local fragrant rice is slightly discounted compared to imported fragrant Thai Hom Mali rice. Our findings suggest that there is an important market for domestic fragrant rice in Dakar and that local rice is competitive with imported rice on that urban market.

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  • Diagne, Mandiaye & Demont, Matty & Ndour, Maimouna, 2016. "Consumer willingness to pay for rice fragrance: Evidence from Senegal," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246923, African Association of Agricultural Economists (AAAE).
  • Handle: RePEc:ags:aaae16:246923
    DOI: 10.22004/ag.econ.246923

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    References listed on IDEAS

    1. Giraud, Georges, 2013. "The World Market of Fragrant Rice, Main Issues and Perspectives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(2), pages 1-20, May.
    2. 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.
    3. Corrigan, Jay R. & Rousu, Matthew C., 2008. "Testing Whether Field Auction Experiments Are Demand Revealing in Practice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2).
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    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, February.
    7. Matty Demont & Amy C. Rizzotto, 2012. "Policy Sequencing and the Development of Rice Value Chains in Senegal," Development Policy Review, Overseas Development Institute, vol. 30(4), pages 451-472, July.
    8. 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.
    9. 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.
    10. 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.
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    Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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