Market demand for and producer profits of certified safe cabbage: evidence from test sales in traditional food markets in Northern Ghana

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cg.contributor.affiliationRuhr University Bochumen_US
cg.contributor.affiliationInternational Water Management Instituteen_US
cg.contributor.affiliationUniversity for Development Studies, Ghanaen_US
cg.contributor.crpWater, Land and Ecosystemsen_US
cg.contributor.donorCGIAR Trust Funden_US
cg.contributor.initiativeResilient Citiesen_US
cg.coverage.countryGhanaen_US
cg.coverage.iso3166-alpha2GHen_US
cg.coverage.regionWestern Africaen_US
cg.coverage.subregionTamaleen_US
cg.creator.identifierPay Drechsel: 0000-0002-2592-8812en_US
cg.identifier.doihttps://doi.org/10.1016/j.worlddev.2024.106739en_US
cg.identifier.iwmilibraryH053003en_US
cg.isijournalISI Journalen_US
cg.issn0305-750Xen_US
cg.journalWorld Developmenten_US
cg.reviewStatusPeer Reviewen_US
cg.volume183en_US
dc.contributor.authorLowenstein, W.en_US
dc.contributor.authorWetzel, C.en_US
dc.contributor.authorMustapha, I.en_US
dc.contributor.authorDrechsel, Payen_US
dc.contributor.authorAbubakari, A.-H.en_US
dc.date.accessioned2024-08-27T09:35:52Zen_US
dc.date.available2024-08-27T09:35:52Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/151874en_US
dc.titleMarket demand for and producer profits of certified safe cabbage: evidence from test sales in traditional food markets in Northern Ghanaen_US
dcterms.abstractVendors in traditional urban food markets in West Africa offer locally produced vegetables. These may be unsafe, carrying pathogens and posing potential risks to consumers’ health; or safe, being free from pathogens. Safe produce is rarely differentiated from unsafe produce through certification or price differentiation. Consequently, there is no market data on consumers’ actual payments for certified safe vegetables. Therefore, we aimed to find out whether there is a demand for certified safe vegetables and whether such safety certification is profitable for small-scale farmers. Previous studies have used experiments to elicit price premia consumers’ state to be willing to pay. In contrast, we offered pathogen-free cabbage certified as safe on traditional food markets in Tamale, Ghana, and observed what consumers actually paid. We noted consumer’s actual purchases, who – at the same market stalls – chose between ordinary cabbage of unknown safety status and certified safe cabbage, which carried a price premium to be paid in addition to the price of ordinary cabbage. Our results show that 176 consumers purchased certified safe cabbage and 123 bought ordinary cabbage during the test sales. Consumers’ probability to buy certified safe cabbage is explained by the size of the price premium charged, households’ characteristics and perceptions of local production modes. Estimating customers’ demand function for certified safe cabbage revealed that a pioneer farmer should charge a monopolistic price premium of GHS 1.48 (+46 % on top of the average price for ordinary cabbage valid during the test sales) to maximise the profits from introducing certified safe cabbage into the market. We find that the most promising certification option is for groups of geographically concentrated farmers to jointly apply for safe vegetable certification.en_US
dcterms.accessRightsOpen Accessen_US
dcterms.available2024-08-26en_US
dcterms.bibliographicCitationLowenstein, W.; Wetzel, C.; Mustapha, I.; Drechsel, Pay; Abubakari, A.-H. 2024. Market demand for and producer profits of certified safe cabbage: evidence from test sales in traditional food markets in Northern Ghana. World Development, 183:106739. [doi: https://doi.org/10.1016/j.worlddev.2024.106739]en_US
dcterms.extent106739.en_US
dcterms.issued2024-11en_US
dcterms.languageenen_US
dcterms.licenseCC-BY-NC-ND-4.0en_US
dcterms.publisherElsevieren_US
dcterms.subjectmarket demanden_US
dcterms.subjectfood safetyen_US
dcterms.subjectcertificationen_US
dcterms.subjectvegetablesen_US
dcterms.subjectcabbagesen_US
dcterms.subjectprofitabilityen_US
dcterms.subjectsmall-scale farmingen_US
dcterms.subjectsmallholdersen_US
dcterms.subjectfarmersen_US
dcterms.subjecthousehold incomeen_US
dcterms.subjectpricesen_US
dcterms.subjectmarketingen_US
dcterms.typeJournal Articleen_US

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