Consumer willingness to pay for fair-trade attributes of goat meat in Kenya: A choice experiment analysis

Abstract

Fair trade is an important ethical concern in the food value chains of developed countries. However, there is a dearth of empirical insights into consumer preferences for this critical aspect in the domestic markets of developing countries. The current study analysed consumer willingness to pay (WTP) for fair-trade attributes in the goat meat value chain in Nairobi, Kenya. Choice experiment data from 270 randomly sampled consumers was analysed using the random parameter logit (RPL) model. The results show that 56% of the consumers were aware of the fair-trade concept and 64% of them were willing to pay for fair-trade-compliant practices. Specifically, consumers were willing to pay a premium of 62% to prevent child labour, 45% to support provision of medical insurance for workers in the meat value chain, 40% for direct purchase from producers, 39% for fair-trade labelling and 30% to support disabled people as part of corporate social responsibility.