An Assessment of Willingness To Pay by Maize and Groundnut Farmers for Aflatoxin Biocontrol Product in Northern Nigeria

Abstract

ABSTRACT In Nigeria, Aflasafe is a registered biological product for reducing aflatoxin infestation of crops from the field to storage, making the crops safer for consumption. The important questions are whether farmers will purchase and apply this product to reduce aflatoxin contamination of crops, and if so under what conditions. A study was carried out to address these questions and assess determinants of willingness to pay (WTP) for the product among maize and groundnut farmers in Kano and Kaduna states in Nigeria. A multistage sampling technique was used to collect primary data from 492 farmers. The majority of farmers who had direct experience with Aflasafe (experienced farmers) in Kano (80.7%) and Kaduna (84.3%) had a WTP bid value equal to or greater than the threshold price ($10) at which Aflasafe was to be sold. The mean WTP estimates for Aflasafe for experienced farmers in Kano and Kaduna were statistically the same. However, values of $3.56 and $7.46 were offered in Kano and Kaduna states, respectively, by farmers who had never applied Aflasafe (inexperienced farmers), and the difference here was significant (P < 0.01). Regression results indicate that contact with extension agents (P < 0.01) and access to credit (P < 0.05) positively and significantly influenced the probability that a farmer would be willing to pay more for Aflasafe than the threshold price. Lack of awareness of the importance of Aflasafe was the major reason cited by inexperienced farmers (64% in Kano state and 21% in Kaduna state) for not using the product. A market strategy promoting a premium price for aflatoxin-safe produce and creating awareness and explaining the availability of Aflasafe to potential users should increase Aflasafe usage.