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: https://ageconsearch.umn.edu/record/246923/files/270.%20WTP%20for%20rice%20fragrance%20in%20Senegal.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.246923?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. 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).
    2. repec:feb:framed:0078 is not listed on IDEAS
    3. 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.
    4. 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.
    5. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    6. 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.
    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. repec:ken:wpaper:0804 is not listed on IDEAS
    10. 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.
    11. 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)

    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. Diagne, Mandiaye & Demont, Matty & Ndour, Maïmouna, 2017. "What is the value of rice fragrance? Consumer evidence from Senegal," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 12(2), June.
    2. Espérance Zossou & Rose Fiamohe & Simple Davo Vodouhe & Matty Demont, 2022. "Experimental auctions with exogenous and endogenous information treatment: Willingness to pay for improved parboiled rice in Benin," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 806-825, September.
    3. Demont, Matty & Fiamohe, Rose & Kinkpé, A. Thierry, 2017. "Comparative Advantage in Demand and the Development of Rice Value Chains in West Africa," World Development, Elsevier, vol. 96(C), pages 578-590.
    4. 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.
    5. Demont, Matty & Rutsaert, Pieter & Ndour, Maimouna & Verbeke, Wim & Seck, Papa Abdoulaye & Tollens, Eric, 2012. "Experimental auctions, collective induction and choice shift: Willingness-to-pay for rice quality in Senegal," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126861, International Association of Agricultural Economists.
    6. Demont, Matty & Britwum, Kofi, 2022. "Local versus Imported: Understanding the Role of Colonial and Cultural Heritage in Shaping Mauritanian Consumers’ Rice Preferences," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322366, Agricultural and Applied Economics Association.
    7. McFall, William A. & Magnan, Nicholas & Spielman, David J., 2013. "Hybrid Rice as a Pro-Poor Technology? Evidence from Bangladesh," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150150, Agricultural and Applied Economics Association.
    8. Jensen, Kimberly L., 1995. "Fluid Milk Purchase Patterns In The South: Effects Of Use Of Nutrition Information And Household Characteristics," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    9. Usala, Cristian & Primerano, Ilaria & Santelli, Francesco & Ragozini, Giancarlo, 2024. "The more the better? How degree programs’ variety affects university students’ churn risk," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    10. Subir K. Chakrabarti & Srikant Devaraj & Pankaj C. Patel, 2021. "Minimum wage and restaurant hygiene violations: Evidence from Seattle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 85-99, January.
    11. Funke, Katja & Hirschauer, Norbert & Peth, Denise & Mußhoff, Oliver & Becker, Oliver Arránz, 2019. "Can personality traits explain compliance behaviour? - A study of compliance with water-protection rules in German agriculture," SocArXiv jnexr_v1, Center for Open Science.
    12. Helen Jensen & Justo Manrique, 1998. "Demand for food commodities by income groups in Indonesia," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 491-501.
    13. Haluk Gedikoglu & Joseph L. Parcell, 2024. "Building Community-Based Social Capital by Enhancing Individual Social Capital: The Case of Farmers in Turkey’s Konya Region," Sustainability, MDPI, vol. 16(18), pages 1-30, September.
    14. Antony W. Dnes & Raymond Swaray, 2020. "Criminalizing price‐fixing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1417-1430, December.
    15. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2022. "Crops in crises: Shocks shape smallholders' diversification in rural Ethiopia," World Development, Elsevier, vol. 159(C).
    16. Oliver Schulte & Trung Thanh Nguyen & Ulrike Grote, 2022. "The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2878-2898, December.
    17. Jūratė Jaraitė-Kažukauskė & Andrius Kažukauskas, 2015. "Do Transaction Costs Influence Firm Trading Behaviour in the European Emissions Trading System?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 583-613, November.
    18. repec:zbw:rwirep:0466 is not listed on IDEAS
    19. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    20. Agossadou, A.J. & Fiamohe, R. & Tossou, H. & Kinkpe, T., 2018. "Agribusiness opportunities for youth in Nigeria: Farmers perceptions and willingness to pay for mechanized harvesting equipment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277553, International Association of Agricultural Economists.
    21. Smale, Melinda & Kergna, Alpha & Thériault, Véronique & Assima, Amidou & Keita, Naman, 2016. "Gender, Generation And Agricultural Intensification: A Case Of Two Cereals In The Sudanian Savanna Of Mali," Feed the Future Innovation Lab for Food Security Policy Research Papers 259505, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).

    More about this item

    Keywords

    Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
    All these keywords.

    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.

    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/aaaeaea.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.