Consumer’s Awareness and Willingness to Pay for Aflatoxin-Free Sunflower Oil from Four Selected Regions in Tanzania

Abstract

This study aimed to answer two objectives: assessing consumer awareness of aflatoxin contamination in food and their willingness to pay (WTP) for aflatoxin-free sunflower oil, and investigating the factors influencing consumers’ WTP a premium price for aflatoxin-free sunflower oil. A total of 480 consumers were randomly selected from four towns, and the towns were selected based on the level of aflatoxin contamination incidences: Dodoma (low awareness) and Iringa (high awareness) (towns with high contamination), and Dar es Salaam (low awareness) and Morogoro (high awareness) (towns with low incidence). To elicit consumers’ willingness to pay for aflatoxin-free food, we used the multiple price list technique (MPL) to assess WTP for sunflower oil which is aflatoxin-free and sunflower oil which has not been tested to be aflatoxin-free. Furthermore, an interval regression model was used to estimate WTP and factors influencing WTP a premium price for aflatoxin-free sunflower oil. We found that consumers were willing to pay a premium price for aflatoxin-free sunflower oil. Consumers had a WTP for a premium of up to 1043 TZS for 1 L of aflatoxin-free sunflower oil. However, the premium varies in the different regions. Consumers from towns with a high incidence of aflatoxin contamination have a WTP of up to 357 TZS, while those from towns with a low incidence of aflatoxin contamination but high awareness have a WTP of up to 1043 TZS. Furthermore, the study finds that education, age, gender, and consumer awareness of aflatoxin contamination have a significant influence on the WTP for sunflower oil free of aflatoxin contamination. This study sheds light to stakeholders involved in the production, marketing, and monitoring of food safety and standards. For the public sector, to maximize consumer welfare, policies to ensure the delivery of safe and healthy food are important, while for the private sector, there is an opportunity to tap into the gap for supplying food with private food safety standards.