Potential Economic Impact and Willingness to Pay for Postharvest Technologies of Mangoes and Their Value-added Products Among Producers and Consumers in Kenya
Abstract
Postharvest loss reduction is increasingly recognized as a promising strategy for ensuring
food and nutrition security. Historically, horticultural research has focused on increasing
production with little emphasis on minimization of postharvest losses (PHLs). In Kenya
there is need to reduce PHLs estimated at up to 50% in mangoes. Low adoption of
postharvest loss reduction technologies (PHLRTs) and poor access to remunerative
markets are considered as key drivers of the postharvest losses. Reduction of PHLs
require adoption of cost effective and acceptable PHL reduction technologies. It is against
this background that the Rockefeller Foundation is supporting a postharvest project
started by the University of Nairobi (UoN) to create awareness and provide applicable
PHLRTs to smallholder farmers. Some of these technologies are tunnel solar dryers,
charcoal and brick coolers.
Charcoal coolers and zero energy brick coolers are off-grid evaporative cooling
technologies which are appropriate for smallholder farmers without access to electricity.
Further, they are constructed from locally available materials making them accessible to
resource-poor smallholder farmers. Solar dryers reduce PHLs through drying of fruits
and vegetables into more shelf stable products such as mango leather and mango crisps
which fetch higher prices than the equivalent quantities of fresh mango fruits. Though
they are so important in this respect, their potential economic impact on smallholders has
not been well studied. Globally, these technologies are not new but their adoption in
Kenya is limited, and factors affecting their utilization and consumption of their valueadded
products are not well understood.
Therefore, the purpose of this study was to estimate the expected return on investment in
PHLRTs and willingness to pay (WTP) for the PHLRTs and their value-added products
among producers and consumers in Kenya. Specifically, the study sought to: (1) Estimate
the potential economic impact of PHLRTs among smallholder mango farmers in Embu
County; (2) Analyze smallholder mango farmers’ WTP for PHLRTs and its influencing
factors; and (3) Assess consumer awareness and WTP for solar-dried mangoes that are
naturally preserved in Nairobi County, Kenya.
Theoretically, this study is anchored on welfare economics and the random utility
maximization theory. The potential benefits of investing in PHLRTs were estimated
using the economic surplus model. The WTP was estimated using a double hurdle model.
Consumer awareness and WTP for naturally preserved solar dried mangoes (NPSDM)
were analysed descriptively, while a tobit model was employed to assess the determinants
of WTP. Multistage sampling procedure was adopted in this study. Embu and Machakos
Counties were purposively selected. Farmers in these Counties had previously been
trained on proper agronomic practices to reduce preharvest losses. These Counties also
contribute significantly to the total mango production in the country.
The proportionate to size sampling was used to determine the sample size in Masii and
Karurumo Locations of Machakos and Embu Counties, respectively. Systematic random
sampling was used to select 320 mango farmers in Masii and Karurumo Locations. Rising
incomes in urban centres is associated with increased expenditure on healthy food
choices, particularly fruits and vegetables. Nairobi county was chosen for the consumer
survey since it is the main consumption area of the dried fruit products. Accidental
sampling procedure was employed in selecting 414 buyers (consumers) from Zucchini,
Carrefour, Chandarana and Tuskys supermarkets in Nairobi. Quantitative and qualitative
research designs were used in this study. Both primary and secondary data were collected
using semi-structured questionnaires, literature review and key informants.
A cost–benefit analysis (CBA) of the postharvest project revealed that investment in the
proposed PHLRTs is viable. This profitability heavily depends on uptake of the
technologies and the cost of capital. It was found that the farmers’ likelihood of paying
for PHLRTs and WTP amount were positively influenced by price, agricultural group
membership and income from mangoes. Another significant factor was gender, which
negatively and positively influenced the probability to pay in Embu and Machakos,
respectively. However, age, experience, land tenure, market access and credit access
significantly influenced WTP amount negatively. Results revealed that the WTP amounts
for the PHLRTs were lower than the market prices.
Only 16% of the consumers were aware of solar dried mangoes. However, consumers
were willing to pay 29% more for NPSDM, with most of them interested in taste. This
WTP was found to be positively influenced by access to mass media for information on
food, purchase of mango products in retail stores and having tasted naturally preserved
mangoes. Therefore, promoting the product through the media and within the retail stores
is necessary to increase awareness and demand. These findings are vital in developing
niche markets for NPSDM.
The study concludes that investment in PHLRTs is viable and consumers are willing to
pay a premium for NPSDM. Further, viability of the technologies is expected to be higher
at higher adoption rates. However, the producers’ WTP amount was lower than the
market rate. Thus, the government should spur demand through enhanced extension
programmes and short-term price subsidies. Promotion of products resulting from the
tunnel solar dryer should also be undertaken to trigger demand among consumers.
Publisher
University of Nairobi
Subject
Cost-Benefit Analysis; double hurdle model; economic surplus; postharvest loss; Tobit model; WTPRights
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http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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