Reference : Willingness-to-pay for local milk-based dairy products in Senegal
Scientific congresses and symposiums : Paper published in a book
Business & economic sciences : Microeconomics
Willingness-to-pay for local milk-based dairy products in Senegal
Lefevre, Mélanie mailto [Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie internationale >]
Anales de Economía Aplicada 2010
[en] The Annals Volume of Applied Economics 2010
XXIV International Conference of Applied Economics
du 16 au 19 juin 2010
[en] Choice-Based-Conjoint analysis ; Ordered Probit Model ; Milk ; Senegal
[en] This paper aims to evaluate Senegalese consumers' willingness-to-pay (WTP) for local fresh milk-based products, in opposition to the ones produced with imported powder. Exploiting data from a choice-based-conjoint analysis conducted on 400 households in the region of Dakar, we evaluate the premium that consumers are willing to pay for fresh raw material (rather than powder) in the composition of sour milk. Based on an Ordered Probit Model, the results show evidence for a positive WTP for fresh raw material, which may be seen as a strong indication of preference for local products.
This WTP greatly depends on the characteristics of the households. Wealthier households are willing to pay more than the medium households, while big households are ready to pay much less than the base category ones. Obviously, some niche markets exist, that producers may target to sell the local milk-based dairy products. However, more information has to be provided about the composition of dairy products, as consumers are not currently able to distinguish both types of raw material, even if they are willing to pay more for one of them.
In spite of some restrictions about the presence of a potential "hypothetical bias" due to the nature of the data, this study gives a first insight of consumers' preferences for local milk-based dairy products.
Centre de Recherche en Économie Publique et de la Population - C.R.E.P.P

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