Upload
ifprimassp
View
15
Download
0
Tags:
Embed Size (px)
Citation preview
ASSESSING FARMERS’ WILLINGNESS-TO-PAY
FOR IMPROVED COMMON BEANS VARIETIES A case study of Kasungu and Dedza districts in Malawi
Outline of the presentation
• Problem statement• Objectives• Methodology• Results• Discussion & Conclusion• Suggestions for future research
Problem statement
Lilongwe,
05/06/2015
Problem statement
• Common beans are important legumes in Malawi due to its versatile benefits (cash & food crop)
• Technically, farmers can experience the benefits despite growing seed from informal sources but can forgo the opportunity cost of high yields
• Problem is this system is rarely supported hence can affect negatively on agricultural productivity & incomes of farmers
Common beans production in Mw (2002 to 2012)Production area
Average area allocated to beans is about 256, 000 ha thus a farmer cultivates on <1ha because priority is given to maize Source: Faostat, 2013
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Beans Maize Tobacco
Are
a (1
000
Ha)
Yield gap
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
500
1000
1500
2000
2500
3000
Bean Potential bean Maize
Yie
ld (
kg/h
a)
Bean yield gap
Produce slightly below 500kg/ha & potential is up to 2000kg/ha for beans under field trial conditions. Maize yield is 1700kg/ha
Source: Bulletin of tropical legumes, 2013
Problem cont.
• Linking informal seed system & formal by adopting improved bean seed varieties can potentially close the yield gap
• Despite large numbers of improved bean seed developed and released in Malawi, the varieties are not used by farmers
• It is therefore of the essence to assess farmers perceptions with regards to improved varieties of beans and then gauge their Willingness-to-Pay (WTP)
Objectives of the study
Lilongwe,
05/06/2015
Objectives of the study
Specifically, the study aims to;
• Assess awareness, attitude and perception with regards to improved bean seed
• Measure farmers’ WTP for the seeds
• Analyze dissemination channels of commercial bean seed
Knowledge gap
What is known What is not known
• Breeders came up with improved bean seed
• Farmers demand of seed using WTP in market good
• Poor marketing of improved bean seed
• Dissemination channels
• Farmers’ exposure to seed
• Perception of farmers
Methodology
Lilongwe,
05/06/2015
Study area
Population of Kasungu district is 627,467 & Kaluluma EPA has 45,769
Dedza district is 624,445 & Bembeke EPA has 30,358
Methodology
• Purposive and Random sampling were adopted
• A total of 132 households and 19 traders were selected
• Primary data was collected using a structured questionnaire and was processed in SPSS
• A five-point likert scale was used to assess farmer’s perception
• CV method using double bounded dichotomous choice questions and mean WTP was found using confidence interval
Results
Lilongwe,
05/06/2015
Perception
Do you believe that with the use of improved bean seed varieties
your productivity can increase?
N Minimum Maximum Mean Std dev
Statistics Statistics Statistics Statistics Std error Statistics
132 3 5 4.61 0.050 0.576
Likert scale from strongly disagree to strongly agree
Majority are towards strongly agree
Source: Own data
Varieties preferred by farmersWhat varieties of improved bean seed do you prefer to grow?
Varieties farmers prefer the most are Kholophete and Napilira
Source: Own data
Varieties stocked by tradersWhat are the improved bean seed varieties usually stocked for trade?
Napilira and Kholophete are varieties usually stocked by the traders
Traders are responding to farmers preferences
Source: Own data
The buying and selling markets of traders
Where is your buying and selling market for improved bean seed?
Majority of traders buy and sell their seed at the local market
Source: Own data
At the buying market;
• 63% mentioned local markets
•21% buys from middlemen
•16% stalk seed from farm-gate
Buyers of bean seed at the market
Who are the buyers of your improved bean seed at the selling market?
The buyers at the local market are the farmers
Source: Own data
Three marketing channels discovered
Seite 20
Breeder
NGO/Govt
Trader
ConsumerB
reeder
NGO/Govt
Poducer
Friends/Own saved
Producer
Trader
Consumer
Initially, this was supposed to be the channel for bean seed to end user
but currently so many distorted along the way. 3rd channel dominating
Analyzing WTPFrequency distribution of WTP from double bounded
Are you willing to pay MK…….for an improved bean seed variety of
your preference?
More than 80% are WTP MK390/ Kg (€1,44) & grain costs MK240 (€
0,87). The 2nd premium is MK 760 (€2.88)
Source: Own data
Frequency distribution from open ended question
How much are you willing to pay for a Kg of beans?
Amount (MK) N Per cent
0 4 3
95 3 2.3
190 1 0.8
305 7 5.3
380 22 16.7
475 26 19.7
570 12 9.1
665 10 7.6
760 47 35.6
Total 132 100
Mean WTP
The study is 95% confident that the mean WTP is between MK 527,78 (€2,42)/kg and MK 591,92 (€2,72)/kg.
Source: Own data
Problems faced by Farmers in Seed Acquisition
What are the problems faced when acquiring seed?
35% of farmers mentioned lack of money as problem with seed acquisition
Source: Own data
Problems faced by traders
What are the problems faced when buying improved common bean seed?
Most traders mentioned poor roads and limited credit opp as their no.1 problemSource: Own data
Discussion & Conclusion
Lilongwe,05/06/2015
Discussion and conclusion
• The study is limited in area, hence results cannot be generalized
• In adoption, convincing farmers to shift from recycling to buying, the
marginal benefit of adopt has to be substantial
• In conclusion, farmers are aware of the benefits of adopting improved
bean seed and developed a positive perception
• Majority of farmers are willing to spend money to purchase the seed
• The study didn’t find any functioning formal seed dissemination channels
• Existing maize seed channels works, this could be applied to beans as
well
Recommendation & suggestion of future research
• Traders need to be licensed by seed services
• Policies should be in place to regulate the seed systems in Malawi
• Govt should include significant amounts of legumes (soybean,
beans, ppeas) in FISP
• There is need for a study to assess vulnerability of farmers in the
bean seed system
– Price hikes, dodgy seed
• Economic studies on farmer decision need to be conducted
– e.g. returns to investments
Grace Timanyechi Munthali
Economist, DARS
Chitedze Research StationP.O. Box 158, Lilongwe, Malawi
e-mail: [email protected]
05.06.2015 Grace Timanyechi
Thank you for your attention!!
Page 29