Estimating Consumer Preferences for and Valuation of Fermented Milk in Senegal

Our research aims to support the milk value chain in Senegal by determining what aspects consumers prioritize when purchasing fermented milk. Our goal is to gain a clearer understanding of how consumers perceive the safety of fermented milk, whether it's made from locally sourced milk or imported milk powder. In this context, local milk pertains to milk produced by Senegalese cows, while imported milk refers to milk derived from foreign cows and processed into powder before being shipped to Senegal. To achieve this, we conducted an experimental auction involving randomly selected consumers in Dakar. We will assess their demand for four variations of fermented milk: 1) no food safety certification, labeled imported; 2) certified and tested for microbial contamination, labeled imported; 3) no food safety certification, labeled local and; 4) certified and tested for microbial contamination, labeled local.

2024-01-08

2024-01-31

Willingness-to-pay for each type of labeled milk

Using the Becker-DeGroot-Marchak (BDM) incentive-compatible auction method, the respondent will be asked to bid their willingness-to-pay for each type of fermented milk against a random number. The bids will be used a measure of: i) demand for imported fermented milk, ii) demand for imported fermented milk deemed safe, iii) demand for local fermented milk, and iv) demand for local fermented milk deemed safe.

We randomly selected 800 fermented milk consumers in four local food markets in Dakar, the capital of Senegal, to participate in our experimental auction for different types of fermented milk. We established several kiosks in those markets where our surveyors randomly approached marketgoers and invited them to participate in our study. In our recruitment efforts, we strived to achieve an equitable balance between men and women participants to ensure a diverse and representative sample. Participants were offered the opportunity to purchase the four distinct types of milk products, using the Becker-DeGroot-Marschak (BDM) auction mechanism. In this auction method, participants bid against a random number for each product, separately. If their bid is higher than the random number they draw, then they purchase the item at the price they drew. If the bid is lower than the price they draw, then they do not get the option to purchase the fermented milk. This method has been proven to lead to an accurate estimate of consumers’ willingness to pay because it involves the possibility of an actual purchase (depending on participants’ willingness to pay and the result of the auction).
We incorporated an additional demographic survey to gather pertinent data on consumers' characteristics, including age, gender, education, occupation, and income. These questions delve into various factors, such as taste preferences, socioeconomic components, and other elements, which may influence participants' willingness to pay for different types of milk.

Not available

Surveyors randomly approaching every third marketgoer.

The unit of randomization is the individual

No

0

800

800 WTP for imported fermented milk, 800 WTP for imported and tested fermented milk, 800 WTP for local fermented milk, 800 WTP for local and tested fermented milk