IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/212602.html
   My bibliography  Save this paper

Consumer willingness to pay for animal welfare attributes in a developing country context: The case of chicken in Nairobi, Kenya

Author

Listed:
  • Otieno, David
  • Ogutu, Sylvester

Abstract

In developing countries, especially in sub-Saharan Africa, policy makers have been reluctant to formulate animal welfare policies. This is despite potential benefits of such policies including increased domestic and global consumers’ demand for products that are compliant with humane treatment of animals. This study employed a choice experiment method to establish consumer willingness to pay (WTP) for animal welfare attributes in chicken. Data were drawn from 200 chicken consumers in Nairobi, Kenya and estimated using a random parameter logit model. The results indicate that consumers were willing to pay a premium for humanely-treated chicken. The consumers had a positive and significant preference for use of certified transportation means, humanely slaughtered chicken and animal welfare labelling. However, the consumers showed a negative preference for use of antibiotics in chicken production. These findings are vital for formulation of product differentiation strategies in the industry as well as food policy.

Suggested Citation

  • Otieno, David & Ogutu, Sylvester, 2015. "Consumer willingness to pay for animal welfare attributes in a developing country context: The case of chicken in Nairobi, Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212602, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212602
    DOI: 10.22004/ag.econ.212602
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/212602/files/Otieno-Consumer%20willingness%20to%20pay%20for%20animal%20welfare%20attributes-369.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.212602?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kimberly Ann Elliott & Richard B. Freeman, 2004. "White Hats or Don Quixotes? Human Rights Vigilantes in the Global Economy," NBER Chapters, in: Emerging Labor Market Institutions for the Twenty-First Century, pages 47-97, National Bureau of Economic Research, Inc.
    2. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    3. Grebitus, Carola & Colson, Gregory & Menapace, Luisa, 2012. "A Comparison of Hypothetical Survey Rankings with Consumer Shopping Behavior," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(1), pages 35-47, February.
    4. Bliemer, Michiel C.J. & Rose, John M., 2010. "Construction of experimental designs for mixed logit models allowing for correlation across choice observations," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 720-734, July.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    6. Bennett, Richard M. & Blaney, Ralph J. P., 2003. "Estimating the benefits of farm animal welfare legislation using the contingent valuation method," Agricultural Economics, Blackwell, vol. 29(1), pages 85-98, July.
    7. Maria Espinosa‐Goded & Jesús Barreiro‐Hurlé & Eric Ruto, 2010. "What Do Farmers Want From Agri‐Environmental Scheme Design? A Choice Experiment Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 259-273, June.
    8. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    9. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    10. Olynk, Nicole J. & Tonsor, Glynn T. & Wolf, Christopher A., 2010. "Consumer Willingness to Pay for Livestock Credence Attribute Claim Verification," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(2), pages 1-20, August.
    11. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(3), pages 1-17, December.
    12. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
    13. Caussade, Sebastián & Ortúzar, Juan de Dios & Rizzi, Luis I. & Hensher, David A., 2005. "Assessing the influence of design dimensions on stated choice experiment estimates," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 621-640, August.
    14. Adrian D. Uzea & Jill E. Hobbs & Jing Zhang, 2011. "Activists and Animal Welfare: Quality Verifications in the Canadian Pork Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(2), pages 281-304, June.
    15. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2007. "Farm Animal Welfare—Testing for Market Failure," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 61-73, April.
    16. David Jakinda Otieno & Eric Ruto & Lionel Hubbard, 2011. "Cattle Farmers’ Preferences for Disease‐Free Zones in Kenya: An application of the Choice Experiment Method," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(1), pages 207-224, February.
    17. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
    18. Guy Garrod & Kenneth G. Willis, 1999. "Economic Valuation of the Environment," Books, Edward Elgar Publishing, number 1368.
    19. Fredrik Carlsson & Peter Frykblom & Carl Johan Lagerkvist, 2007. "Consumer willingness to pay for farm animal welfare: mobile abattoirs versus transportation to slaughter," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(3), pages 321-344, September.
    20. Michael Maloni & Michael Brown, 2006. "Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry," Journal of Business Ethics, Springer, vol. 68(1), pages 35-52, September.
    21. Grebitus, Carola & Colson, Gregory & Menapace, Luisa, . "A comparison of hypothetical survey rankings with consumer shopping behavior and product knowledge," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(1), pages 1-13.
    22. Nick Hanley & Sergio Colombo & Dugald Tinch & Andrew Black & Ashar Aftab, 2006. "Estimating the benefits of water quality improvements under the Water Framework Directive: are benefits transferable?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(3), pages 391-413, September.
    23. Dentoni, Domenico & Tonsor, Glynn T. & Calantone, Roger J. & Peterson, H. Christopher, 2009. "“Animal Welfare” Practices along the Food Chain: How Does Negative and Positive Information Affect Consumers?," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58008, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Otieno, D., 2018. "Consumer Willingness to Pay for Fair Trade Attributes of Goat Meat in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277156, International Association of Agricultural Economists.
    2. Uwamariya, Beatrice, 2014. "Assessment of Consumer Awareness and Preferences for Quality Certification and Origin-Labeling in Fruit Salads in Kigali,Rwanda," Research Theses 198512, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Kennedy Otieno Pambo & David Jakinda Otieno & Julius Juma Okello, 2017. "Analysis of Consumer Preference for Vitamin A-Fortified Sugar in Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(4), pages 745-768, August.
    4. Tonsor, Glynn T. & Olynk, Nicole & Wolf, Christopher, 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(3), pages 713-730, December.
    5. Rombach, Meike & Widmar, Nicole Olynk & Byrd, Elizabeth & Bitsch, Vera, 2018. "Do all roses smell equally sweet? Willingness to pay for flower attributes in specialized retail settings by German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 91-99.
    6. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    7. Ortega, David L. & Wang, H. Holly & Wu, Laping & Hong, Soo Jeong, 2015. "Retail channel and consumer demand for food quality in China," China Economic Review, Elsevier, vol. 36(C), pages 359-366.
    8. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    9. Domínguez-Torreiro, Marcos & Soliño, Mario, 2011. "Provided and perceived status quo in choice experiments: Implications for valuing the outputs of multifunctional rural areas," Ecological Economics, Elsevier, vol. 70(12), pages 2523-2531.
    10. McKendree, Melissa G.S. & Olynk Widmar, Nicole & Ortega, David L. & Foster, Kenneth A., 2013. "Consumer Preferences for Verified Pork-Rearing Practices in the Production of Ham Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-21.
    11. Siikamaki, Juha & Layton, David F., 2007. "Discrete choice survey experiments: A comparison using flexible methods," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 122-139, January.
    12. Ana I. Sanjuán‐López & Helena Resano‐Ezcaray, 2020. "Labels for a Local Food Speciality Product: The Case of Saffron," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 778-797, September.
    13. Nguyen, Ly & Gao, Zhifeng & Anderson, James L., 2022. "Regulating menu information: What do consumers care and not care about at casual and fine dining restaurants for seafood consumption?," Food Policy, Elsevier, vol. 110(C).
    14. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    15. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.
    16. Petrolia, Daniel R. & Walton, William C. & Sarah, Acquah, 2014. "A National Survey of Consumer Preferences for Branded Gulf Oysters and Risk Perceptions of Gulf Seafood," Research Reports 190586, Mississippi State University, Department of Agricultural Economics.
    17. Sergio Colombo & Nick Hanley & Jordan Louviere, 2009. "Modeling preference heterogeneity in stated choice data: an analysis for public goods generated by agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 307-322, May.
    18. Faical Akaichi & Klaus Glenk & Cesar Revoredo‐Giha, 2022. "Bundling food labels: What role could the labels “Organic,” “Local” and “Low Fat” play in fostering the demand for animal‐friendly meat," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 349-370, April.
    19. Greiner, Romy & Bliemer, Michiel & Ballweg, Julie, 2014. "Design considerations of a choice experiment to estimate likely participation by north Australian pastoralists in contractual biodiversity conservation," Journal of choice modelling, Elsevier, vol. 10(C), pages 34-45.
    20. Tonsor, Glynn T. & Wolf, Christopher & Olynk, Nicole, 2009. "Consumer voting and demand behavior regarding swine gestation crates," Food Policy, Elsevier, vol. 34(6), pages 492-498, December.

    More about this item

    Keywords

    Agricultural and Food Policy; Livestock Production/Industries;

    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:iaae15:212602. See general information about how to correct material in RePEc.

    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 bibliographic 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.

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

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.