CONSUMERS’ WILLINGNESS TO PAY FOR SAFER VEGETABLES IN TAMALE, GHANA

Abstract

Consumers’ concerns over misuse of agrochemicals and untreated wastewater for irrigation in vegetable production are increasing demand for safer vegetables in urban cities. Providing safer vegetables requires production methods that minimize or eliminate the associated risks. Nevertheless, these practices involve extra cost, which requires that consumers, at least, bear part of the cost. The main objective of this paper is to examine factors influencing consumers’ willingness to pay price premiums for safer vegetables. We sampled a cross-section of 331 consumers in Tamale, and elicited their willingness to pay premium prices for safer vegetables. The results show that consumers are willing to pay average premiums of GH¢8.01 (US$1.90), GH¢3.27 (US$0.78) and GH¢2.89 (US$0.69) for standard quantities of safer cabbage, safer ayoyo and safer okra, respectively. These premium prices are equivalent to 128.6%, 197.3% and 189.0% of the current average market prices of same quantities of the conventional vegetables. Typically, consumers willing to pay premium prices are those with income generating employment, have trust in traders and care about the use of untreated wastewater for irrigation. These findings mean that consumers are generally willing to bear extra cost to secure consumption of safer vegetables, and avoid health-related risks associated with unsafe, conventional vegetables.