Are Low-Income Consumers Willing to Pay for Fortification of a Commercially Produced Yogurt in Bangladesh. Issue 1 (March 2020)

• Record Type: Journal Article
• Authors: Agnew, Jessica; Henson, Spencer; Cao, Ying
• Is Part Of: Food and nutrition bulletin. Volume 41:Issue 1(2020)
• Page Start: 102
• Page End: 120
• Publication Date: 2020-03
• Subjects: fortification -- food marketing -- real choice experiment -- bottom of the pyramid -- attribute nonattendance -- Bangladesh -- food-based nutrition; Food -- Periodicals; Nutrition -- Periodicals; Agriculture -- Periodicals; Dietary Proteins -- Periodicals; Food Supply -- Periodicals; Nutrition -- Periodicals; Electronic journals; Food; Nutrition; Periodicals; 613.205
• DOI: 10.1177/0379572119895860
• Languages: English
• ISSNs: 0379-5721

Abstract

Background: There is an active debate over the potential for market-based strategies to address micronutrient deficiencies in low- and middle-income countries. However, there are questions over the viability of market-based strategies, reflecting limited evidence on the value that low-income households attach to the nutritional attributes of processed foods. Objective: The objective of this article is to investigate the willingness to pay of primary food purchasers in low-income households in rural Bangladesh for Shokti+, a nutritionally fortified yogurt produced and distributed by Grameen Danone Foods Limited. Methods: A real choice experiment with economic incentives was conducted with 1000 rural food purchasers sampled from the distribution area of Shokti+ in rural Bangladesh. The choices of respondents revealed attribute nonattendance, favoring the fortification attribute over price. Results: Results from a random parameter logit model found that respondents were willing to pay an average of 18 BDT (US$0.22) for fortification and 6 BDT (US$0.073) for brand name. The market price for Shokti+ at the time of the study was 10 BDT (US$0.12). The results from a random effects model suggest the magnitude of willingness to pay for fortification was primarily driven by the nutritional awareness of respondents but offset by household food insecurity. Conclusions: The article concludes that, while there is a viable market for fortified yogurt in rural Bangladesh, efforts to promote this product as a strategy to address micronutrient deficiency are best targeted at low-income households with some capacity to pay for low priced commercially produced foods.