Willingness to Pay for Improved Milk Sensory Characteristics and Assurances in Northern Kenya Using Experimental Auctions

Pastoralists in northern Kenya may be able to diversify income by selling milk in nearby towns and cities. However, milk sold in open-air markets in communities in northern Kenya is often of low quality in terms of its sensory characteristics. The milk is also often adulterated before sale. These markets are characterized by poor consumers who need to make choices about milk quality with virtually no information other than their own sensory perceptions. These conditions are similar in many parts of the world for many different commodities and products. An examination was undertaken using experimental auctions to determine if consumers in the border town of Moyale, Kenya are willing to pay for enhanced milk sensory characteristics and assurances. The results suggest that even poor consumers are willing to pay for enhanced sensory characteristics and assurances if these can be communicated in a trusted manner. Older, relatively well-informed women are the group most willing to pay the highest prices for milk quality.willingness-to-pay, milk, Kenya, Agribusiness, Agricultural Finance, Q10, Q14,

What are Consumers in Moyale, Kenya Willing to Pay for Improved Milk Quality?

Pastoralists in northern Kenya and southern Ethiopia may be able to diversify income by selling milk to urban residents. However, milk sold in open-air markets is often low in quality because it has been transported long distances without refrigeration and is subject to spoilage, or because milk is adulterated prior to sale to boost volume or enhance appearance. Open-air markets are characterized by low-income consumers who must make choices about milk quality with virtually no information other than their own sensory perceptions. PARIMA researchers used an experimental-auction approach to determine what residents in Moyale, Kenya, are willing to pay (WTP) for improved milk quality. Researchers created milk samples that varied in taste and texture and asked participants to bid for them in order to reveal the value of their preferences. Results indicate that consumers are indeed willing to pay for improved milk quality. For example, compared to younger women, older women would pay a 20% premium for higher-quality milk. Furthermore, poorer consumers would pay a 19% premium simply for assurances on milk safety. These findings indicate that there are economic incentives to enhance milk quality and justify attention to basic technical and/or organizational interventions that could improve the quality of milk marketed to the residents of this border town

Willingness to Pay for Improved Milk Sensory Characteristics and Assurances in Northern Kenya Using Experimental Auctions

Pastoralists in northern Kenya may be able to diversify income by selling milk in nearby towns and cities. However, milk sold in open-air markets in communities in northern Kenya is often of low quality in terms of its sensory characteristics. The milk is also often adulterated before sale. These markets are characterized by poor consumers who need to make choices about milk quality with virtually no information other than their own sensory perceptions. These conditions are similar in many parts of the world for many different commodities and products. An examination was undertaken using experimental auctions to determine if consumers in the border town of Moyale, Kenya are willing to pay for enhanced milk sensory characteristics and assurances. The results suggest that even poor consumers are willing to pay for enhanced sensory characteristics and assurances if these can be communicated in a trusted manner. Older, relatively well-informed women are the group most willing to pay the highest prices for milk quality

Willingness to Pay for Improved Milk Sensory Characteristics and Assurances in Northern Kenya Using Experimental Auctions

Pastoralists in northern Kenya may be able to diversify income by selling milk in nearby towns and cities. However, milk sold in open-air markets in communities in northern Kenya is often of low quality in terms of its sensory characteristics. The milk is also often adulterated before sale. These markets are characterized by poor consumers who need to make choices about milk quality with virtually no information other than their own sensory perceptions. These conditions are similar in many parts of the world for many different commodities and products. An examination was undertaken using experimental auctions to determine if consumers in the border town of Moyale, Kenya are willing to pay for enhanced milk sensory characteristics and assurances. The results suggest that even poor consumers are willing to pay for enhanced sensory characteristics and assurances if these can be communicated in a trusted manner. Older, relatively well-informed women are the group most willing to pay the highest prices for milk quality