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Retail market prices of fonio reveal the demand for quality characteristics in Bamako, Mali

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Listed:
  • Dury, Sandrine
  • Meuriot, Veronique
  • Fliedel, Genevieve
  • Blancher, Sandy
  • Guindo, Fanta Bore
  • Drame, Djibril
  • Bricas, Nicolas
  • Diakite, Lamissa
  • Cruz, Jean-Francois

Abstract

African consumers' expectations concerning quality of food products are great. In spite of constrained budgets, we showed that market retailed prices revealed quality preferences of the consumers and not only production costs. In very poor countries like Mali, food innovation is limited by the very low purchasing power of the population. However, technological food product or process innovations are possible and sometimes valuable. Demand driven innovation may lead to open new markets, opportunities for small and medium scale enterprises and to improve consumers' welfare. Based on this assumption, technical research was done to provide new food products. In this paper, using both sensory test and a hedonic price approach, we estimated consumer demand for different characteristics of fonio, a West African cereal, and showed that poor consumers do have quality requirements and actually pay for it. We showed that the shadow or hedonic price paid for quality characteristics is small but significant. A comparison of sensory test and market study showed a convergence between what people say they prefer and what they really pay for. Results were consistent and showed directions for technological improvement of the product and its production process. The Partial Least Square method was used to estimate hedonic prices of the different modalities of fonio quality traits.

Suggested Citation

  • Dury, Sandrine & Meuriot, Veronique & Fliedel, Genevieve & Blancher, Sandy & Guindo, Fanta Bore & Drame, Djibril & Bricas, Nicolas & Diakite, Lamissa & Cruz, Jean-Francois, 2007. "Retail market prices of fonio reveal the demand for quality characteristics in Bamako, Mali," 106th Seminar, October 25-27, 2007, Montpellier, France 7949, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa106:7949
    DOI: 10.22004/ag.econ.7949
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    References listed on IDEAS

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    1. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    3. Sanogo, Diakalia & Masters, William A., 2002. "A market-based approach to child nutrition: mothers' demand for quality certification of infant foods in Bamako, Mali," Food Policy, Elsevier, vol. 27(3), pages 251-268, June.
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    Cited by:

    1. Cathie Laroche Dupraz & Cyprien Awono, 2009. "Patterns and determinants of urban chicken consumption in Haiti and Cameroon: similar contexts, differentiated prospects," Working Papers SMART 09-16, INRAE UMR SMART.
    2. Catherine Laroche-Dupraz & Carole Ropars-Collet & . Inra & . Societe Francaise d'Economie Rurale & . Centre de Coopération Internationale En Recherche Agronomique Pour Le Développement, 2009. "Disruption on urban chicken markets in Haiti and Cameroon : the role of socio-economic factors on chicken’s consumption," Post-Print hal-02754360, HAL.
    3. Wonang D. L. & Deshi S. N. & Mwanle G.C., 2017. "A Preliminary Study of Effects of Preservation on the Biochemical and Microbial Deterioration of Acha (Digitaria exilis, Stapf) in Plateau State, Nigeria," Noble International Journal of Scientific Research, Noble Academic Publsiher, vol. 1(4), pages 65-68, April.
    4. Dury, Sandrine & Meuriot, Veronique, 2010. "Do urban African dwellers pay a premium for food quality and, if so, how much? An investigation of the Malian fonio grain market," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 91(4).

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    Demand and Price Analysis;

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