Introducing Food Safety Labels in Complex Food Supply Chains: Evidence from a Choice Experiment in Nigeria

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May 8, 2019 - <sanouawa@msu.edu>, Lenis Saweda O. Liverpool-Tasie, Caputo Vincenzina, John Kerr

Awa Sanou, Lenis Saweda O. Liverpool-Tasie, Caputo Vincenzina, John Kerr 2019. Introducing Food Safety Labels in Complex Food Supply Chains: Evidence from a Choice Experiment in Nigeria, Food Security Policy Research Brief 93, East Lansing: Michigan State University.

Key Findings

  • Maize traders respond to attributes their buyers care about and will pay a price premium for.
  • Wholesalers who sell to buyers (other large traders, large feed mills, food companies) who know or care about aflatoxin exhibit the highest mean WTP for aflatoxin safe certification.
  • Traders who sell to consumers consistently have a low WTP for aflatoxin certification; consistent with the fact that they don’t know about aflatoxins.
  • Traders selling to consumers exhibit the highest WTP for low moisture content, an attribute they are familiar with, but it is an incomplete measure of aflatoxin contamination.
  • Nigerian traders trust reputable domestic organizations over foreign ones for aflatoxin certification.

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