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Hugo De Groote1, Simon Kimenju 2,
Fredric Keter3, Obadiah Ngigi4 and Zachary Gitonga1
1International Maize and Wheat Improvement Centre (CIMMYT)
2;Tegemeo Institute, Nairobi, Kenya 3 Kansas State University, USA; 4
Kenyatta University, Nairobi, Kenya,
Rutgers University, New Brunswick, NJ
Sept 18-19, June 2014
Published in 2016 in AgBioForum, 19(1): 54-65.
http://www.agbioforum.org/v19n1/v19n1a06-degroote.htm
But what do rural
consumers in Africa think
about GM food?
Introduction
● Genetically modified (GM) crops
 have a high potential for increasing food production.
 Few countries in Africa have so far accepted their use.
 The decision makers often share the aversion of
European consumers
 The major beneficiaries are farmers and rural consumers,
● But:
 Consumers’ opinion is rarely asked.
 Often, gatekeepers in the food industry decide
 Their opinion determines adoption diffusion of GM crops.
 They do not share the opinion of the decision makers
Background
● IRMA:
 1999: CIMMYT and the Kenya Agricultural Research
Institute (KARI), initiated project to develop insect
resistant maize varieties,
 using both conventional and biotech approaches,
 with genes and events in the public domain
 Named IRMA: Insect Resistant Maize for Africa
● Economic analysis
 Importance of stemborers and crop losses
 Farmer estimate (survey): 12.9%,
 Trials: 13.5% , $80 million (value of maize imports)
 Ex ante impact assessment
 Consumer acceptance
 First: urban consumers
 Followed by: rural consumers
Objectives
To determine the awareness,
knowledge, attitudes and concerns
of urban and rural consumers and
their gatekeepers in the food
industry
 To determine consumers willingess
to pay and industry’s willingness to
accept
Methodology
● Urban consumers
 Nairobi (2003): 604 urban consumers, at
points of sale
 Machakos (2006): 200, points of sale
● Rural:
 Eastern Kenya (2006), 200.
 Western Kenya (2007): 134
 Central Kenya (2006): 107
● Gatekeepers in 7 major urban centres
(2007-2008):
 supermarkets(40) and millers (32)
● Survey:
 Awareness
 Sources of information
 Perceptions
 Willingness to Pay
Awareness
0
10
20
30
40
50
60
70
Biotechnology Genes GM crops in
general
GM sweet
potatoes
Bt maize Bt cotton
%ofrespondentsaware
Nairobi (2003)
Machakos (2009)
Moist Transitional (West, 2006)
Moist transitional (Central, 2009)
Dry transitional (Eastern, 2006)
Dry mid-altitudes (Eastern, 2006)
● Only half of consumers know about
biotechnology, less about genes
● Few rural consumers know about
GM crops
Sources of information
Source
Urban
consumers
Rural consumers Gatekeepers
Western
Machakos
(E)
Makueni
(E) Millers
Super
markets
Radio 63 37 74 0
Newspapers 56 13 28 24
School/college 35 59 68 20 50
Media 22 40 75
Friends/other people 22 0 68 24 25 0
Television 16
Research 53 0
Ministry of Agriculture 26 77 20 10
Provincial admin. 4 25
Agr shows 8 11
Brochures 50 0
Food industry 50 0
Internet 0 0 0 0 0 0
Other 19
Number 227 126 60 28 32
Perceptions on benefits and risks
(% of respondents agreeing with statements)
Type of
percepti
on
Statement Consumers
Urban Rural
Benefits
GM technology increases productivity and offers solution to
world food problem 81 98
GM can reduce pesticides on food 79 85
GM can create foods with enhanced nutritional value 78 71
GM has potential of reducing pesticide residues in the
environment 73 85
Environ
mental risk
Insect resistant GM crops may cause death of untargeted insects 51
GM can lead to a loss of original plant varieties 50 38
GM threatens the environment 34 18
Health risk
People could suffer allergic reaction after consuming GM foods 40 14
Consuming GM foods can damage ones health 37 15
Consuming GM foods might lead to an increase in antibiotic-
resistant diseases 35 17
Ethical and Equity Concerns
(% of respondents agreeing with statements)
Type
Statement Consumers
Urban Rural
Ethical
GM food is artificial 50 16
GM is tampering with nature 48 4
GM technology makers are playing God 23 5
Equity
GM products are being forced on developing
countries by developed countries 36 8
GM products only benefit multinationals
making them 30
GM products don’t benefit small-scale farmers 22 7
Estimating WTP with contingent valuation
0
10
20
30
40
50
60
70
80
90
100
-50 -30 -20 -10 -5 0 5 10 20 30 50
Discount or premium level offered (as a %of price)
Respondentsacceptingtheoffer(%)
accept to buy, even at a premium (second bid)
only accept to buy at a discount (second bid)
accept to buy at the same price (first bid)
Kimenju and De Groote, 2008
(Agricultural Economics)
Willingness to pay
Urban Rural
Nairobi Machakos Moist transitional
Dry
transitional
Dry Mid-
altitutes
West Central (Machakos) (Makueni)
Willingness to pay at same price (%) 68 90 89 83 96 97
Constant (α) 4.17 4.16 3.69 4.18 4.53 5.65
(standard error) 0.22 0.44 0.46 0.49 0.60 1.19
Bid (ρ) 0.07 0.05 0.05 0.03 0.07 0.11
(standard error) 0.00 0.01 0.01 8.52 0.01 0.02
N 553 193 114 103 140 60
Mean WTP 58 79 79 131 63 54
Premium (%) 14 98 39 152 109 79
● 68% of Nairobi consumers, and
83-97% or urban consumers are
willing to buy GM maize at the
same price
● Most consumers, especially rural,
are willing to pay a premium
Factors affecting WTP by consumers
Variable Urban Rural
Class
Nairo
bi
Mach
akos Western Central Machakos Makueni
Constant 3.48 *** 4.55*** 4.11 ** 4.18 *** 5.94 *** 8.56 **
Bid 0.08 *** 0.05*** 0.06 *** 0.03 0.08 *** 0.12 ***
Percepti
ons
Awareness about GM crops 0.00 -0.25 -0.37 -1.53 0.83 * 2.04 *
Benefit perception index 0.01 2.95 * 1.10 *
Health risk perception index -0.84 *** -1.04 * -0.45
Environment risk Perception index -1.11
Ethical and equity concerns index -0.59 * -0.02
Trust in government 0.76 *** -0.27 -1.48
Demogr
aphic
Age 0.00 -4.74 -0.03 -0.01 -0.02 -0.02
Gender 0.04 -0.09 -0.07 -0.43 0.21 1.19
Education (years of schooling) -0.02 0.00 -0.65 -0.03 -0.09
Secondary 0.65 ***
Income 4 (> $ 667) 2.03 ***
Land size -0.01 -0.02 0.03 -0.15
Willingness to accept GM food
by the Kenyan food industry
No
On case-by-
case basis
No
On case-by-
case basis
Yes
Yes
Undecided
Undecided
0
10
20
30
40
50
60
70
80
90
Milling Companies Supermarkets
Bett, Ouma and De Groote, 2010 (Food Policy)
Conclusion
● Awareness:
Limited knowledge on GM crops, especially among
rural consumers
Good knowledge among the industry
● Attitude is generally positive:
Benefits are acknowledged
No equity concerns
Industry is likely to follow the general trend
● WTP
 Urban and rural consumers are willing to pay a
premium for GM maize
Conclusions (cont.)
● There are some concerns:
Health
Environment
Some ethical (only urban)
● Information:
 Concerns can be addressed trhough information
 Information should be targeted, using the appropriate method,
such as:
 Brochures for the milling industry.
 Radio for poor and rural consumers
 Politicy makers: ??
Thank you The authors would like to thank
our:
● Donors: Syngenta Foundation
for Sustainable Agriculture, the
Rockefeller Foundation,
● Collaborators in the surveys:
James O. Ouma, Japheter
Wanyama, Kendo Danda
(KARI), and the enumerators,
● Respondents:
 consumers in Nairobi, West and
Eastern Kenya,
 Gatekeepers from the milling industry
and supermarkets
History of this presentation
● Oral presentation at the Symposium on GM food crops in Asia and
Africa, Rutgers University, New Brunswick, NJ, Sept 18-19, June
2014.
● Oral presentation at the 18th Conference of the International
Consortium on Applied Bioeconomy Research (ICABR)
“Bioeconomy and Development”, Nairobi, 18-20 June 2014.
● Poster paper presented at the 29th Triennial Conference of the
International Conference of Agricultural Economists (ICAE) in Milan,
Italy, 9-14 August, 2015.
● Citation:
De Groote H., Simon C. Kimenju, F. Keter, O. Ngigi and Z. Gitonga. 2016. But what do
rural consumers in Africa think about GM food? AgBioForum, 19(1): 54-65.
http://www.agbioforum.org/v19n1/v19n1a06-degroote.htm .

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De groote 2014 but what do rural consumers say about gm food v4_rutgers for slideshare

  • 1. Hugo De Groote1, Simon Kimenju 2, Fredric Keter3, Obadiah Ngigi4 and Zachary Gitonga1 1International Maize and Wheat Improvement Centre (CIMMYT) 2;Tegemeo Institute, Nairobi, Kenya 3 Kansas State University, USA; 4 Kenyatta University, Nairobi, Kenya, Rutgers University, New Brunswick, NJ Sept 18-19, June 2014 Published in 2016 in AgBioForum, 19(1): 54-65. http://www.agbioforum.org/v19n1/v19n1a06-degroote.htm But what do rural consumers in Africa think about GM food?
  • 2. Introduction ● Genetically modified (GM) crops  have a high potential for increasing food production.  Few countries in Africa have so far accepted their use.  The decision makers often share the aversion of European consumers  The major beneficiaries are farmers and rural consumers, ● But:  Consumers’ opinion is rarely asked.  Often, gatekeepers in the food industry decide  Their opinion determines adoption diffusion of GM crops.  They do not share the opinion of the decision makers
  • 3. Background ● IRMA:  1999: CIMMYT and the Kenya Agricultural Research Institute (KARI), initiated project to develop insect resistant maize varieties,  using both conventional and biotech approaches,  with genes and events in the public domain  Named IRMA: Insect Resistant Maize for Africa ● Economic analysis  Importance of stemborers and crop losses  Farmer estimate (survey): 12.9%,  Trials: 13.5% , $80 million (value of maize imports)  Ex ante impact assessment  Consumer acceptance  First: urban consumers  Followed by: rural consumers
  • 4. Objectives To determine the awareness, knowledge, attitudes and concerns of urban and rural consumers and their gatekeepers in the food industry  To determine consumers willingess to pay and industry’s willingness to accept
  • 5. Methodology ● Urban consumers  Nairobi (2003): 604 urban consumers, at points of sale  Machakos (2006): 200, points of sale ● Rural:  Eastern Kenya (2006), 200.  Western Kenya (2007): 134  Central Kenya (2006): 107 ● Gatekeepers in 7 major urban centres (2007-2008):  supermarkets(40) and millers (32) ● Survey:  Awareness  Sources of information  Perceptions  Willingness to Pay
  • 6. Awareness 0 10 20 30 40 50 60 70 Biotechnology Genes GM crops in general GM sweet potatoes Bt maize Bt cotton %ofrespondentsaware Nairobi (2003) Machakos (2009) Moist Transitional (West, 2006) Moist transitional (Central, 2009) Dry transitional (Eastern, 2006) Dry mid-altitudes (Eastern, 2006) ● Only half of consumers know about biotechnology, less about genes ● Few rural consumers know about GM crops
  • 7. Sources of information Source Urban consumers Rural consumers Gatekeepers Western Machakos (E) Makueni (E) Millers Super markets Radio 63 37 74 0 Newspapers 56 13 28 24 School/college 35 59 68 20 50 Media 22 40 75 Friends/other people 22 0 68 24 25 0 Television 16 Research 53 0 Ministry of Agriculture 26 77 20 10 Provincial admin. 4 25 Agr shows 8 11 Brochures 50 0 Food industry 50 0 Internet 0 0 0 0 0 0 Other 19 Number 227 126 60 28 32
  • 8. Perceptions on benefits and risks (% of respondents agreeing with statements) Type of percepti on Statement Consumers Urban Rural Benefits GM technology increases productivity and offers solution to world food problem 81 98 GM can reduce pesticides on food 79 85 GM can create foods with enhanced nutritional value 78 71 GM has potential of reducing pesticide residues in the environment 73 85 Environ mental risk Insect resistant GM crops may cause death of untargeted insects 51 GM can lead to a loss of original plant varieties 50 38 GM threatens the environment 34 18 Health risk People could suffer allergic reaction after consuming GM foods 40 14 Consuming GM foods can damage ones health 37 15 Consuming GM foods might lead to an increase in antibiotic- resistant diseases 35 17
  • 9. Ethical and Equity Concerns (% of respondents agreeing with statements) Type Statement Consumers Urban Rural Ethical GM food is artificial 50 16 GM is tampering with nature 48 4 GM technology makers are playing God 23 5 Equity GM products are being forced on developing countries by developed countries 36 8 GM products only benefit multinationals making them 30 GM products don’t benefit small-scale farmers 22 7
  • 10. Estimating WTP with contingent valuation 0 10 20 30 40 50 60 70 80 90 100 -50 -30 -20 -10 -5 0 5 10 20 30 50 Discount or premium level offered (as a %of price) Respondentsacceptingtheoffer(%) accept to buy, even at a premium (second bid) only accept to buy at a discount (second bid) accept to buy at the same price (first bid) Kimenju and De Groote, 2008 (Agricultural Economics)
  • 11. Willingness to pay Urban Rural Nairobi Machakos Moist transitional Dry transitional Dry Mid- altitutes West Central (Machakos) (Makueni) Willingness to pay at same price (%) 68 90 89 83 96 97 Constant (α) 4.17 4.16 3.69 4.18 4.53 5.65 (standard error) 0.22 0.44 0.46 0.49 0.60 1.19 Bid (ρ) 0.07 0.05 0.05 0.03 0.07 0.11 (standard error) 0.00 0.01 0.01 8.52 0.01 0.02 N 553 193 114 103 140 60 Mean WTP 58 79 79 131 63 54 Premium (%) 14 98 39 152 109 79 ● 68% of Nairobi consumers, and 83-97% or urban consumers are willing to buy GM maize at the same price ● Most consumers, especially rural, are willing to pay a premium
  • 12. Factors affecting WTP by consumers Variable Urban Rural Class Nairo bi Mach akos Western Central Machakos Makueni Constant 3.48 *** 4.55*** 4.11 ** 4.18 *** 5.94 *** 8.56 ** Bid 0.08 *** 0.05*** 0.06 *** 0.03 0.08 *** 0.12 *** Percepti ons Awareness about GM crops 0.00 -0.25 -0.37 -1.53 0.83 * 2.04 * Benefit perception index 0.01 2.95 * 1.10 * Health risk perception index -0.84 *** -1.04 * -0.45 Environment risk Perception index -1.11 Ethical and equity concerns index -0.59 * -0.02 Trust in government 0.76 *** -0.27 -1.48 Demogr aphic Age 0.00 -4.74 -0.03 -0.01 -0.02 -0.02 Gender 0.04 -0.09 -0.07 -0.43 0.21 1.19 Education (years of schooling) -0.02 0.00 -0.65 -0.03 -0.09 Secondary 0.65 *** Income 4 (> $ 667) 2.03 *** Land size -0.01 -0.02 0.03 -0.15
  • 13. Willingness to accept GM food by the Kenyan food industry No On case-by- case basis No On case-by- case basis Yes Yes Undecided Undecided 0 10 20 30 40 50 60 70 80 90 Milling Companies Supermarkets Bett, Ouma and De Groote, 2010 (Food Policy)
  • 14. Conclusion ● Awareness: Limited knowledge on GM crops, especially among rural consumers Good knowledge among the industry ● Attitude is generally positive: Benefits are acknowledged No equity concerns Industry is likely to follow the general trend ● WTP  Urban and rural consumers are willing to pay a premium for GM maize
  • 15. Conclusions (cont.) ● There are some concerns: Health Environment Some ethical (only urban) ● Information:  Concerns can be addressed trhough information  Information should be targeted, using the appropriate method, such as:  Brochures for the milling industry.  Radio for poor and rural consumers  Politicy makers: ??
  • 16. Thank you The authors would like to thank our: ● Donors: Syngenta Foundation for Sustainable Agriculture, the Rockefeller Foundation, ● Collaborators in the surveys: James O. Ouma, Japheter Wanyama, Kendo Danda (KARI), and the enumerators, ● Respondents:  consumers in Nairobi, West and Eastern Kenya,  Gatekeepers from the milling industry and supermarkets
  • 17. History of this presentation ● Oral presentation at the Symposium on GM food crops in Asia and Africa, Rutgers University, New Brunswick, NJ, Sept 18-19, June 2014. ● Oral presentation at the 18th Conference of the International Consortium on Applied Bioeconomy Research (ICABR) “Bioeconomy and Development”, Nairobi, 18-20 June 2014. ● Poster paper presented at the 29th Triennial Conference of the International Conference of Agricultural Economists (ICAE) in Milan, Italy, 9-14 August, 2015. ● Citation: De Groote H., Simon C. Kimenju, F. Keter, O. Ngigi and Z. Gitonga. 2016. But what do rural consumers in Africa think about GM food? AgBioForum, 19(1): 54-65. http://www.agbioforum.org/v19n1/v19n1a06-degroote.htm .