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

  1. Sylvia Nakanyike Makerere University First Bio-Innovate Regional Scientific Conference United Nations Conference Centre (UNCC-ECA) Addis Ababa, Ethiopia, 25-27 February 2013 1
  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. 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. Major Objectives: To assess farmers’ WTP for Virus-free sweetpotato vines Specific Objectives: 1. To characterize sweetpotato farmers in C.Ug 2. To determine the value farmers are willing to pay for virus- free sweetpotato vines 3. To determine factors affecting famers’ WTP for virus- free sweetpotato vines 4. To estimate the market potential for Virus – free sweetpotato vines 4
  5.  Study done in Mpigi and Wakiso district  200 farmers sampled and questionnaire used  Contingency valuation methods used to estimate price Data Analysis Objective 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. Objective 3: Tobit model specified as: Ai* = b 0 + b1 X1 + b 2 X 2 + b 3 X 3 + - - - - - - - - - - - - b10 X10 + e Ai* - latent variable indexing WTP. βo – Intercept β1…………… β10 are parameters to be estimated X1…………X10 are the various independent variable 6
  7. Description of independent variables used in Analysing Factors Affecting Farmers’ WTP for Virus Sweetpotato Vines -free Variable Description Unit of measurement X1 Age of the farmer Number of years X2 Education level of household head o Number of years spent in school Membership in Association 0 = no, 1 = yes x3 Access to extension services Number of times per year x4 Access to credit services 0 = no, 1 = yes x5 Farmer sells sweetpotato 0 = no, 1 = yes x6 Access to quality vines 0 = no, 1 = yes x7 X8 Revenue from sweetpotato Uganda shillings X9 Market access Distance (km) X10 Total area under sweetpotato production acres 7
  8. Objective 4: Where: MP = is the market potential N= Number of farmers willing to buy virus-free vines. P= Mean WTP Q=Number of planting seasons per year A= Average number of bags required by each farmer 8
  9. Socio- Unit of Farmers Farmers P economic measure not willing willing to value characteristics to pay pay more more than than 8000/= 8000/= Age Years 39.29 45.12 0.005 (13.40) (14.12 Education Number 6.78 6.68 0.849 level of years (3.82) (3.41) spent in school Land 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. Socio- Unit of Percentage Percentage P value economic measure numbers of number of characteristics 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 47.44 Experiencing Yes 50.91 49.09 0.233 SPVD No 65.00 35.00 Access to Yes 51.55 48.45 0.624 good quality No 52.87 47.13 vines 10
  11. T-test Results Comparing mean prices Variable Mean Confidence P Value (UShs) interval (UShs) Price for virus- 8459 7,844 -9,074 0.0000 free vines (4239) Price for 2611 800 - 4421 farmer-saved (1991) vines 11
  12. Results Obj.3 Dependent variable Units of measure Coefficient t-statistic Pvalue Price of Virus Vines -free Uganda Shillings Constant 6958.685 2.48 0.014 Age of the farmer Years 40.740 1.72* 0.088 Education of the farmer years in school 15.094 0.16 0.871 Membership in association (0 = no, 1= yes) -206.814 -0.26 0.797 Access to extension services No. of times/yr -98.60 -0.46 0.644 Access to credit services (1= no, 2= yes) 792.045 1.14 0.255 Farmer sells sweetpotato (1= no, 2= yes) 1751.372 2.09** 0.038 Access to quality vines (1= no, 2= yes) 709.1317 1.12 0.262 Revenue from sweetpotato Uganda Shillings 0.0037 2.34** 0.021 Market access Distance (km) -169.5612 -3.30*** 0.001 Total area under sweetpotato (Acres) 654.739 1.91* 0.058 No. 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. Detail Amount Units Number of possible 532,543 Farmers buyers Mean WTP Price 8400 Uganda Shillings Average annual 2 planting seasons purchasing rate Average purchasing 4 bags per season quantity Market potential 35.8 Billion Uganda Shillings 13
  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. Thank you for listening! Cassava Potato and Sweetpotato Bioinnovate Consortium - MAK 15
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