Consumer willingness to pay for Vitamin A fortification in vegetable oil in South Western Nigeria: a contingent valuation approach

Type Journal Article - Nigerian Journal of Agriculture, Food and Environment
Title Consumer willingness to pay for Vitamin A fortification in vegetable oil in South Western Nigeria: a contingent valuation approach
Author(s)
Volume 8
Issue 2
Publication (Day/Month/Year) 2012
Page numbers 66-73
URL http://www.njafe.org/Njafe2012Vol8No2/13_Oni.pdf
Abstract
The fortification of Vegetable oil, among other food products with Vitamin A is in a bid to reduce the Vitamin A deficiency
status of Nigerian citizens. The study was carried out to determine the willingness to pay of consumers for the fortification of
vegetable oil with Vitamin A. This was carried out by first determining the awareness of consumers of the fortification of
vegetable oil with Vitamin A, and then estimating their willingness to pay using a contingent valuation method. The contingent
valuation method is used to estimate the value placed on non market goods. It works by creating a hypothetical market
scenario for a certain good or service and then placing a value on its perceived benefits. The study was carried out in two
states in Southwest Nigeria- Lagos and Oyo States. Two local governments were purposively selected from the two states with
respondents were randomly selected based on proportionate to size principle. From the study, it is seen that total food, non
food and vegetable oil expenditure were N18850.83, N16215.17 and 1824.05 monthly respectively. The result reveals that over
60% of the respondents were aware of Vitamin A fortification in vegetable oil, with 76% willing to pay the premium of
N421.37 to obtain the fortified vegetable oil. The probit estimation of the contingent valuation shows that price of vegetable
oil, log of household expenditure, log of vegetable oil expenditure, age of household head and location significantly impacted
on the probability of being willing to pay for vitamin A fortification in vegetable oil. Thus, it is concluded that there is a
reasonable level of awareness and willingness to pay for vitamin A fortification in vegetable oil in southern Nigeria. Arising
from the foregoing, it is recommended that policies that will enhance respondents purchasing power should be pursued in
order to encourage them to pay for Vitamin A fortified vegetable oil..

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