Consumers' Willingness to Pay for Genetically Modified Foods in Kenya

A survey of 600 consumers was conducted in Nairobi to determine attitudes and willingness to pay (WTP) for GM maize meal. WTP was estimated using the double-bounded logit model. Overall, 38% are aware of GM crops. Most consumers believe in the technology's positive impacts, but are concerned about environmental and health risks. Majority (68%) would buy GM maize meal at the price of their favourite maize meal brand. The mean WTP for GM maize meal is KShs 58 for a 2kg packet, a premium of 13.7 % over mean average price of favourite brands. WTP is influenced more by subjective than socioeconomic characteristics.GMO, biotechnology, consumer, Africa, maize, Consumer/Household Economics, D12, C25, Q16,

Economic Analysis of Alternative Maize Storage Technologies in Kenya

Upcoming technologies for maize storage have sometimes been promoted without being subjected to trials and economic analysis. In the recent past, new storage technologies, actellic super, super grain bag and the metal silo have been developed. In this paper, the results of crop loss trials are combined with measures of project worth to determine the attractiveness of investing in new storage technologies. Determination of the benefit was based on the amount of loss the new technology could abate. A one ton metal silo, with negligible % crop loss abated USD 100 in 12 months. These benefits were found to increase with time meaning that a farmer benefits by storing longer. Measures of project worth, the NPV and BCR were used to analyze the attractiveness of investing in the new technologies at a discount rate of 15% and an investment period of 15 years. Sensitivity analysis was done by varying the discount rate and the investment period. When six metal silo sizes were subjected to this analysis, the results showed that the three largest silos were attractive for all these scenarios. On the other hand, the smaller the silo size the higher the requirement that the interest rate be small and the period of investment bigger for it to be an attractive investment. Therefore, promoting larger silos would be more cost-effective to the farmer.Storage, LGB, economic analysis, Kenya, Crop Production/Industries,

Comparing Accuracy and Costs of Revealed and Stated Preferences: The Case of Consumer Acceptance of Yellow Maize in East Africa

For quite a while, stated preferences have been a major tool to measure consumer preferences for new products and services. Revealed preference methods, in particular experimental economics, have gained popularity recently because they have been shown to be more incentive compatible, and therefore more accurate. However, this advantage comes at the expense of higher survey costs. In the developing countries with limited funding for research, it is important to determine whether the extra cost can be justified by the extra gain in accuracy. A survey of 100 farmers was carried out in Western Kenya to determine consumer preference for yellow maize using the contingent valuation, choice experiments and experimental auction methods. Experimental auctions produced the most realistic results for mean willingness to pay. They are also the most accurate at all budget levels, but also the most expensive. Considering their accuracy and realistic results, we conclude that they should be the recommended method in measuring consumer preference in developing countries, since the extra cost is more than recovered by the gain in accuracy.Kenya, maize, consumer, experimental auctions, stated preference, WTP, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, D6, Q12,

Improving the Use of Experimental Auctions in Africa: Theory and Evidence

Experimental auctions have not been widely used in Africa. However, auctions are important tools for evaluating new products and technologies. To increase the quality of these experiments, we explore an alternative first-price bidding mechanism that is more similar to African market exchanges and we analyze factors likely to affect bidding. Experiments with African consumers show that the proposed first-price mechanism has no advantage over conventional second-price mechanisms. Results show high and significant cash-in-hand, experimenter, and time of day effects in main rounds, and significant ordering effects in test rounds. These effects need to be carefully considered when applying the Becker-DeGroot-Marschak mechanism in Africa.Africa, BDM mechanism, experimenter effect, first-price auction, income effect, order effect, time of day effect, Research Methods/ Statistical Methods,

Does Land Use Patterns Matter for Bt-Maize: The Case of Maize Farming System in Kenya

Population pressures and the need to optimize the use of limited available land has led to increasing cropping affluence levels within the maize agro-ecologies in Kenya, and a shift from large to smallholder intensification and multiple cropping patterns. Using a geographic information system, this study relates cropping patterns, by area share, maize productivity and household incomes across maize agro-ecologies, with the purpose to establish a decision support system for optimizing land allocation and in priority setting for introduction of new technologies such as Bt maize varieties. Results show that land use patterns and maize productivity in maize farming systems differ between agroecological zones. The high potential areas experience high maize yields, with maize grown alongside major cash crops such as tea and coffee. In contrast, lowland coastal strip and lake Victoria region tend to grow drought tolerant tuber crops (such as cassava and sweet potatoes) alongside maize in appreciable land sizes. Similarly the dry areas grow drought tolerant legumes such as pigeon pea alongside maize. These low potential areas thus concentrate on meeting their subsistence food self-sufficiency needs, pointing at risk management strategies against drought and pests such as stem borer, unlike high potential areas with high value cash crops. Maize breeders should therefore consider insertion of Bt- genes in maize varieties that would achieve high production and which are also capable of safely growing side by side with crops that meet different food security conditions in different agro-ecological zones in Kenya.Land use, Smallholders, Maize production, Food security, Kenya, Crop Production/Industries, Land Economics/Use,

The nutrition transition and indicators of child malnutrition

We analyze how the nutrition transition affects child malnutrition in developing countries. It is often assumed that the nutrition transition affects child weight but not child growth, which could be one reason why child underweight decreases faster than child stunting. But these effects have hardly been analyzed empirically. Our cross-country panel regressions show that the nutrition transition reduces child underweight, while no consistent effect on child overweight is found. Against common views, our results also suggest that the nutrition transition reduces child stunting. Further research is required to confirm these findings

Market Liberalization and Agricultural Intensification in Kenya (1992-2002)

This study analyses the impact of the liberalization on the intensification of maize production in Kenya. It first analyses the impact of liberalization on input and output prices, followed by an analysis of farmer practices comparing two major farmer surveys, from 1992 and 2002. The results show that liberalization has had a general positive impact on the evolution of prices, with a decrease of input/output price ratios. However, fluctuations of maize prices has become very high and, combined with a decrease of marketing by the marketing board, has increased the uncertainty in maize production. The liberalization has also resulted in a decrease in extension services. Fortunately, farmers have an increased access to credit services. The combined effect of prices and access to services has resulted in little change in the number of farmers using new maize technologies, in particular improved varieties and fertilizer. The dose of fertilizer per ha has, however, decreased. As a result, yields have not increased. The analysis also showed that credit and extension have a major effect on adoption and, indirectly, on yield. The results indicate that an effort is needed to improve extension access. While the improved access to credit is encouraging, more than half the farmers still miss this essential service. Finally, the increased price fluctuation and market uncertainty should be addressed through improved use of price buffer mechanisms. Market access can also substantially be improved through investment in infrastructure.liberalization, intensification, adoption, maize, Africa, International Development, International Relations/Trade,

Farmers, consumers and gatekeepers and their attitudes towards biotechnology

In 1999, a project to develop insect resistance maize for Africa was launched. Social scientists from this team used participatory rural appraisals, consumer studies, a baseline and gatekeeper survey to study the awareness and attitudes towards biotechnology among farmers, consumers and gatekeepers. Farmers’ awareness of biotechnology was very low (12.7%). Awareness on genetically modified (GM) crops among consumers was also found to be low, although it was higher among urban consumers (38%) than among rural ones (31%). Radio was the main source of information. A large majority of consumers agreed to statements expressing the benefits of biotechnology such as increasing productivity. However, they had environmental and health concerns. Half of the urban consumers expressed concerns about the environment, in particular, loss of biodiversity. In contrast, awareness about GM was found to be high for the gatekeepers (87% for millers, and 79% for supermarkets). A majority of gatekeepers in the food industry were concerned that GM food could cause allergic reactions or antibiotic-resistant diseases. Almost all consumers were willing to purchase GM maize meal at the same price. Of those in the industry, more than two thirds, were hesitant to use them preferring to make the decision on a case-by-case basis.Key words: Biotechnology, genetically modified (GM), consumer, attitudes, gatekeeper

Supermarkets and the nutrition transition in Kenya

Many low income countries are experiencing a 'nutrition transition' towards the consumption of more energy-dense, highly processed foods and beverages that are often high in caloric sweeteners, fat and salt. Changing lifestyles and urbanisation have coincided with a 'retail revolution', a rapid advance of supermarkets even in remote areas. Among the consequences of the nutrition transition have been expanding waistlines and surging rates of nutrition-related non-communicable diseases, including diabetes, heart diseases and certain cancers. Given the still prevailing rates of under-nutrition, affected countries face a double burden of malnutrition, and individuals that have overcome food poverty risk often remain health-poor. The effect of supermarkets on consumers' diets and the nutrition transition remains unclear: By offering stable and consistent access to a wide range of foods with different dietary qualities, supermarkets could either discourage or contribute to the consumption of a well-balanced diet. This paper investigates the effect of supermarkets on consumption patterns using cross-sectional household survey data collected in Kenya in 2012. In order to establish causality, our sample was designed to be quasiexperimental in nature, with study sites differing in terms of supermarket access. We employ instrumental variable techniques to account for potential endogeneity due to selection effects regarding supermarket purchases. Our findings suggest that supermarket purchases increase the consumption of processed foods at the expense of unprocessed foods. Supermarkets are associated with higher expenditure shares and calorie shares of processed foods, and with increased per capita calorie availability. The latter effect is supported by lower prices per calorie for processed food items. Supermarket purchases have a positive effect on dietary diversity, but implications for the nutrient adequacy of consumers remain unclear