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
cg.contributor.affiliationInternational Water Management Instituteen
cg.contributor.affiliationUniversity for Development Studies, Ghanaen
cg.contributor.crpWater, Land and Ecosystems
cg.contributor.donorCGIAR Trust Funden
cg.contributor.initiativeResilient Cities
cg.coverage.countryGhana
cg.coverage.iso3166-alpha2GH
cg.coverage.regionWestern Africa
cg.coverage.subregionTamale
cg.creator.identifierPay Drechsel: 0000-0002-2592-8812
cg.identifier.doihttps://doi.org/10.1016/j.worlddev.2024.106739en
cg.identifier.iwmilibraryH053003
cg.isijournalISI Journalen
cg.issn0305-750Xen
cg.journalWorld Developmenten
cg.reviewStatusPeer Reviewen
cg.volume183en
dc.contributor.authorLowenstein, W.en
dc.contributor.authorWetzel, C.en
dc.contributor.authorMustapha, I.en
dc.contributor.authorDrechsel, Payen
dc.contributor.authorAbubakari, A.-H.en
dc.date.accessioned2024-08-27T09:35:52Zen
dc.date.available2024-08-27T09:35:52Zen
dc.identifier.urihttps://hdl.handle.net/10568/151874
dc.titleMarket demand for and producer profits of certified safe cabbage: evidence from test sales in traditional food markets in Northern Ghanaen
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
dcterms.accessRightsOpen Access
dcterms.available2024-08-26
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
dcterms.extent106739.en
dcterms.issued2024-11
dcterms.languageen
dcterms.licenseCC-BY-NC-ND-4.0
dcterms.publisherElsevieren
dcterms.subjectmarket demanden
dcterms.subjectfood safetyen
dcterms.subjectcertificationen
dcterms.subjectvegetablesen
dcterms.subjectcabbagesen
dcterms.subjectprofitabilityen
dcterms.subjectsmall-scale farmingen
dcterms.subjectsmallholdersen
dcterms.subjectfarmersen
dcterms.subjecthousehold incomeen
dcterms.subjectpricesen
dcterms.subjectmarketingen
dcterms.typeJournal Article

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