Sylvia Nakanyike          Makerere UniversityFirst Bio-Innovate Regional Scientific Conference United Nations Conference C...
   Scarcity of quality planting material is a key constraint    affecting sweetpotato productivity in Uganda (Yanggen and...
   A sustainable use of such initiatives will    depend on farmers’ willingness to pay    (WTP) for the virus–free sweetp...
Major Objectives: To assess farmers’ WTP forVirus-free sweetpotato vinesSpecific Objectives:1. To characterize sweetpotato...
 Study done in Mpigi and Wakiso district 200 farmers sampled and questionnaire used Contingency valuation methods used ...
Objective 3: Tobit model specified as:Ai* = b 0 + b1 X1 + b 2 X 2 + b 3 X 3 + - - - - - - - - - - - - b10 X10 + eAi* - lat...
Description of independent variables      used in Analysing Factors AffectingFarmers’ WTP for Virus Sweetpotato Vines     ...
   Objective 4:Where: MP = is the market potentialN= Number of farmers willing to buy virus-freevines.P= Mean WTPQ=Number...
Socio-          Unit of  Farmers      Farmers      Peconomic        measure not willing   willing to   valuecharacteristic...
Socio-          Unit of Percentage Percentage    P valueeconomic        measure numbers of number ofcharacteristics       ...
T-test Results Comparing mean pricesVariable          Mean     Confidence        P Value                  (UShs)   interva...
Results Obj.3Dependent variable         Units of measure Coefficient          t-statistic PvaluePrice of Virus Vines      ...
Detail                   Amount         UnitsNumber     of   possible 532,543        FarmersbuyersMean WTP Price          ...
   There is no major variation between the two    categories of farmer. Only variation is age, implying    more experienc...
Thank you for listening!Cassava Potato and SweetpotatoBioinnovate Consortium - MAK                                 15
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Farmers’ willingness to pay for virus-free sweetpotato vines in Central Uganda

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Presented by Sylvia Nakanyike (Makerere University) at the First Bio-Innovate Regional Scientific Conference, Addis Ababa, Ethiopia, 25-27 February 2013


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Farmers’ willingness to pay for virus-free sweetpotato vines in Central Uganda

  1. 1. Sylvia Nakanyike Makerere UniversityFirst Bio-Innovate Regional Scientific Conference United Nations Conference Centre (UNCC-ECA) Addis Ababa, Ethiopia, 25-27 February 2013 1
  2. 2.  Scarcity of quality planting material is a key constraint affecting sweetpotato productivity in Uganda (Yanggen and Naggujja, 2006; CIP,2009; Hagenimana,1999; Kapinga et al.,1995 ). Yet, use of farmer saved planting material is associated with the spread of SPVD. SPVD caused yield losses of up to 90% and disappearance of the would good varieties. Fortunately, biotechnological initiatives (e.g. TC and virus indexing) are now available that could be used in rapid production of virus free sweetpotato planting material (PM). 2
  3. 3.  A sustainable use of such initiatives will depend on farmers’ willingness to pay (WTP) for the virus–free sweetpotato vines, whose price will certainly be higher than for farmer-saved PM. Thus, use of QPM may have a cost implication which could make the technology less affordable by resource poor sweetpotato farmers. And, adoption of QPM will depend on farmers’ willingness to pay. 3
  4. 4. Major Objectives: To assess farmers’ WTP forVirus-free sweetpotato vinesSpecific Objectives:1. To characterize sweetpotato farmers in C.Ug2. To determine the value farmers are willing to pay for virus- free sweetpotato vines3. To determine factors affecting famers’ WTP for virus- free sweetpotato vines4. To estimate the market potential for Virus – free sweetpotato vines 4
  5. 5.  Study done in Mpigi and Wakiso district 200 farmers sampled and questionnaire used Contingency valuation methods used to estimate priceData AnalysisObjective 1: Farmers categorized into 2 groups Descriptive statistics, t tests and chi square tests used to test significance Objective 2: Means estimated and compared using t test 5
  6. 6. Objective 3: Tobit model specified as:Ai* = b 0 + b1 X1 + b 2 X 2 + b 3 X 3 + - - - - - - - - - - - - b10 X10 + eAi* - latent variable indexing WTP.βo – Interceptβ1…………… β10 are parameters to be estimatedX1…………X10 are the various independent variable 6
  7. 7. Description of independent variables used in Analysing Factors AffectingFarmers’ WTP for Virus Sweetpotato Vines -freeVariable Description Unit of measurementX1 Age of the farmer Number of yearsX2 Education level of household head o Number of years spent in school Membership in Association 0 = no, 1 = yesx3 Access to extension services Number of times per yearx4 Access to credit services 0 = no, 1 = yesx5 Farmer sells sweetpotato 0 = no, 1 = yesx6 Access to quality vines 0 = no, 1 = yesx7X8 Revenue from sweetpotato Uganda shillingsX9 Market access Distance (km)X10 Total area under sweetpotato production acres 7
  8. 8.  Objective 4:Where: MP = is the market potentialN= Number of farmers willing to buy virus-freevines.P= Mean WTPQ=Number of planting seasons per yearA= Average number of bags required by eachfarmer 8
  9. 9. Socio- Unit of Farmers Farmers Peconomic measure not willing willing to valuecharacteristics to pay pay more more than than 8000/= 8000/=Age Years 39.29 45.12 0.005 (13.40) (14.12Education Number 6.78 6.68 0.849level of years (3.82) (3.41) spent in schoolLand access Acres 4.77 5.54 0.321 (4.51) (4.94)Family size People 5.92 5.69 0.636 (3.31) (3.41) 9
  10. 10. Socio- Unit of Percentage Percentage P valueeconomic measure numbers of number ofcharacteristics farmers not farmers willing to willing to pay more pay more than than 8000/= 8000/=Gender Male 51.56 48.44 0.863 Female 52.89 47.44Experiencing Yes 50.91 49.09 0.233SPVD No 65.00 35.00Access to Yes 51.55 48.45 0.624good quality No 52.87 47.13vines 10
  11. 11. T-test Results Comparing mean pricesVariable Mean Confidence P Value (UShs) interval (UShs)Price for virus- 8459 7,844 -9,074 0.0000free vines (4239)Price for 2611 800 - 4421farmer-saved (1991)vines 11
  12. 12. Results Obj.3Dependent variable Units of measure Coefficient t-statistic PvaluePrice of Virus Vines -free Uganda ShillingsConstant 6958.685 2.48 0.014Age of the farmer Years 40.740 1.72* 0.088Education of the farmer years in school 15.094 0.16 0.871Membership in association (0 = no, 1= yes) -206.814 -0.26 0.797Access to extension services No. of times/yr -98.60 -0.46 0.644Access to credit services (1= no, 2= yes) 792.045 1.14 0.255Farmer sells sweetpotato (1= no, 2= yes) 1751.372 2.09** 0.038Access to quality vines (1= no, 2= yes) 709.1317 1.12 0.262Revenue from sweetpotato Uganda Shillings 0.0037 2.34** 0.021Market access Distance (km) -169.5612 -3.30*** 0.001Total area under sweetpotato (Acres) 654.739 1.91* 0.058No. Observations=180 Prob>chi2 0.012 = 2 Pseudo R 0.0067 = Loglikelihood-1672.1928 =Note: 1. (*) is significance at 10%, (**) Significance at 5%, (***) significance at 1%. Observation Summary: -censored observations at WTP<=1000; 4 left 12
  13. 13. Detail Amount UnitsNumber of possible 532,543 FarmersbuyersMean WTP Price 8400 Uganda ShillingsAverage annual 2 planting seasonspurchasing rateAverage purchasing 4 bags per seasonquantityMarket potential 35.8 Billion Uganda Shillings 13
  14. 14.  There is no major variation between the two categories of farmer. Only variation is age, implying more experience and better appreciation of effects of SPVD Farmers were willing to pay for quality vines Commercial oriented sweetpotato farmers expressed a higher WTP than subsistence sweetpotato farmers There is a big market potential for virus-free sweetpotato vines 14
  15. 15. Thank you for listening!Cassava Potato and SweetpotatoBioinnovate Consortium - MAK 15
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