IDEAS home Printed from https://ideas.repec.org/p/ags/aaae16/246923.html
   My bibliography  Save this paper

Consumer willingness to pay for rice fragrance: Evidence from Senegal

Author

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

Abstract

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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/246923/files/270.%20WTP%20for%20rice%20fragrance%20in%20Senegal.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    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).
    4. repec:feb:framed:0078 is not listed on IDEAS
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaae16:246923. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaaeaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.