Determinants of Consumption Pattern and Willingness to Pay for Solar Dried Vegetables among Rural Households in Tanzania

Abstract

Recent development in technology has led to adoption of advanced technologies like irrigation and greenhouses for horticultural crops in Africa with limited focus on post-harvest technologies. This study focused on ways of reducing post-harvest losses of traditional African vegetables (TAVs) through drying. Specifically, it assessed two methods of drying vegetables: solar drying and open sun drying. Solar dried TAVs are better in terms of quality as opposed to traditionally known open sun dried TAVs that is predominantly common among rural households in Tanzania. The specific objectives of this study were; to identify the attributes consumers consider when purchasing dried vegetables, assess household‟s consumption frequency of solar and open sun dried vegetables, estimate household‟s willingness to pay (WTP) for solar dried TAVs and factors influencing WTP. Secondary data collected in July to August, 2016 from three districts in Tanzania; Kongwa and Mpwapwa in Dodoma region and Iramba in Singida region was utilized. Structured questionnaire was used to obtain data from 240 respondents that were later analyzed using STATA software. Factor analysis was used to analyze the product attributes that consumers consider when purchasing vegetables, Ordered bivariate probit to analyze the consumption frequency of dried vegetables while a double bounded dichotomous choice model was used to determine factors influencing willingness to pay. Three methods were used to estimate the willingness to pay, real choice experiment, contingent valuation and Becker-DeGroot-Marshack. From confirmatory factor analysis both marketable qualities and physical product characteristics are important when purchasing dried vegetables. Market attributes and being female significantly influenced consumption frequency. The premiums varied significantly with elicitation techniques. Contingent valuation method gave the highest premium of USD 0.30; followed with choice experiment with mean premium of USD 0.04 while the mean willingness based on experimental auction was below the market price. Experimental auction is the most suitable since it had the lowest efficiency ratio. It brings out the actual consumer willingness to pay. Consumer WTP for solar dried TAVs was elicited through Double bounded dichotomous choice model. Age, gender, years of schooling, being household head or spouse, income and awareness of solar dried TAVs was some of the factors positively determining consumer willingness to pay. The study findings did not only help in understanding demand and WTP for solar dried TAVs but also gave insights on interventions needed to promote solar drying technology to farmers and private food processing businesses. Awareness creation on availability of low cost solar dryers is required.