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Demand for Aflatoxin‐Safe Maize in Kenya: Dynamic Response to Price and Advertising

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  • Vivian Hoffmann
  • Christine M. Moser
  • Timothy J. Herrman

Abstract

In countries where regulatory enforcement is weak, voluntary third‐party verification of firms' food safety processes can allow concerned consumers to select safer products. However, due in part to their legal ambiguity, and the potential to attract additional regulatory scrutiny, food safety claims are rarely made by firms. As a result, the impact of such claims on consumer demand is not well understood. We examine how labeling maize as tested for aflatoxin, a carcinogen also associated with stunting in children, affects sales. By randomly varying the timing and intensity of a marketing campaign to promote the first maize flour brand in Kenya labeled as tested for aflatoxin, we characterize dynamic consumer response to information about food safety. We find an immediate response in sales to marketing alone, which disappears as soon as marketing ceases. Sales remain elevated in the weeks after a temporary discount is offered, but this effect also fades over time and is not associated with greater awareness of the firm's food safety claims. These results suggest that it is unrealistic to expect for‐profit firms serving mass markets in low‐ and middle‐income countries to invest heavily in marketing based on food safety claims.

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  • Vivian Hoffmann & Christine M. Moser & Timothy J. Herrman, 2021. "Demand for Aflatoxin‐Safe Maize in Kenya: Dynamic Response to Price and Advertising," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 275-295, January.
    • Handle: RePEc:wly:ajagec:v:103:y:2021:i:1:p:275-295
    DOI: 10.1111/ajae.12093
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    2. Nindi, Tabitha Charles & Bauchet, Jonathan & Ricker-Gilbert, Jacob, 2023. "Information and the trade-off between food safety and food security in rural markets: Experimental evidence from Malawi," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 170-186.
    3. Oluwagbenga Akinwehinmi & Kolawole Ogundari & Taye Timothy Amos, 2022. "Consumers’ food control risk perception and preference for food safety certification in emerging food markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 690-708, September.
    4. Kelvin Mashisia Shikuku & Erwin Bulte & Carl Johan Lagerkvist & Nhuong Tran, 2023. "Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria," Experimental Economics, Springer;Economic Science Association, vol. 26(5), pages 1060-1084, November.
    5. Akinwehinmi, Oluwagbenga J. & Colen, Liesbeth, 2024. "Effect of Information on Consumers’ Trade-Off Between Subjective Food Safety Cues and Certification: Insights from a Choice Experiment," 2024 Annual Meeting, July 28-30, New Orleans, LA 343674, Agricultural and Applied Economics Association.
    6. Chowdhury, Reajul & Crost, Benjamin & Hoffmann, Vivian, 2022. "Marketing fortified rice: Effects of aspirational messaging and association with free distribution," Food Policy, Elsevier, vol. 112(C).
    7. Rutsaert, Pieter & Donovan, Jason & Kimenju, Simon, 2021. "Demand-side challenges to increase sales of new maize hybrids in Kenya," Technology in Society, Elsevier, vol. 66(C).

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