Farmer perception and valuation of seed quality: Evidence from bean and cowpea seed auctions in Tanzania and Ghana

Abstract

Double blind field experiments and experimental auctions were conducted with bean and cowpea farmers in Tanzania and Ghana to gauge the relative demand for three types of seed products that differ in price and quality: certified, quality declared, and recycled. Whether the cost differential makes these seeds qualitatively different products as reflected in their perceived performance, and whether that translates into farmers' willingness to pay price premiums, are the research questions addressed by this study. Results indicate that, all else equal, there were significant differences in the perceived quality of the seed products evaluated. Farmers were willing to pay significantly more for their higher rated seed relative to their lower rated seeds. However, for a majority of farmers the magnitude of the premium they are willing to pay for a higher quality seed is less than the current price differential between certified seed and grain. Research and policy implications of these results for legume seed system are discussed.

Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda

“…The technique has been used among a growing body of applied studies measuring WTP in a rural African setting, providing reliable results (see e.g. Banerji et al ., 2016; Oparinde et al ., 2016; De Groote et al ., 2016b; Maredia et al ., 2019; Berry et al ., 2020).…”

“…WTP studies for seed have mainly focused on the WTP for individual variety traits such as drought tolerance or higher yields, rather than for the product itself (in our case a 2 kg pack of maize seed), using conjoint or discrete choice experiments (see, for example, Baidu-Forson et al, 1997;Bajari and Benkard, 2001;Dalton, 2004;Horna et al, 2007;Asrat et al, 2010;Enid et al, 2015;Kassie et al, 2017). In addition, Maredia et al (2019) point out that in most of these studies variation in quality of the product is not considered. In their study they address this by eliciting WTP for different seed quality types, using visual inspection of crops in the field to assess quality of the seed.…”

“…In sub‐Saharan Africa, market imperfections and information asymmetries tend to restrict farmers’ ability to appreciate the benefits of welfare enhancing technologies, in particular for agricultural inputs (Jack, 2013; Maredia et al ., 2019). For example, germination, seed health and vigour are credence attributes.…”

“…In addition, Maredia et al . (2019) point out that in most of these studies variation in quality of the product is not considered. In their study they address this by eliciting WTP for different seed quality types, using visual inspection of crops in the field to assess quality of the seed.…”

“…Our empirical strategy relies on a Becker‐DeGroot‐Marschak (BDM) auction to elicit WTP for quality seed and estimates the informational effects on farmers’ WTP (e.g. De Groote et al ., 2011, 2016b; Banerji et al ., 2016; Oparinde et al ., 2016; De Steur et al ., 2017; Maredia et al ., 2019).…”