Sustainable Agriculture Models and Willingness to Pay (WTP): A Matching Approach among Consumers in Kenya

Abstract

The markets for organic products are emerging as an alternative to health conscious consumers in the world. On the other hand, different scholars and organisations have promoted models of sustainable agriculture to improve on the consumption of organic products. For example the “Save and Grow” model promoted by Food and Agriculture organisation (FAO). However, the purchase of organic vegetables among urban households, remains at minimum levels. Moreover, few studies have attempted to evaluate the factors that affect perception of sustainable agriculture models for organic vegetables among urban households. Furthermore, the specific impact of perception of “Save and Grow” model on the WTP has not been widely evaluated by researchers. Therefore, we evaluated the determinants of adopting “Save and Grow model” for organic vegetables among consumers in Nairobi. Secondly, we also assessed the impact of “Save and Grow” on WTP for organic vegetables among consumers in Nairobi. The survey collected data from 308 consumers in Nairobi, Kenya. We selected the consumers based on a systematic random sampling approach. This involved sampling every 5th consumer at the exit of the retail outlets.We used a pretested questionnaire to collect data at exit points of the main organic outlets in Nairobi. The questionnaire contained questions on the consumers' socioeconomic characteristics. Moreover, the consumers were asked about there willingness to pay for organic vegetables. Subsequently, we analysed the data using a propensity score matching. The results suggest a significant relationship between perception of “Save and Grow model” and the following socioeconomic characteristics: health, gender, employment status, education level,price and labeling.Moreover, the “Save and Grow” had a significant impact on WTP for organic vegetables among consumers. We concluded that sustainable agriculture intervention is an avenue for transitioning from conventional to organic products. Marketers of organic products can focus on this avenue in promotion of their products in the urban markets. Policy should focus on up-scaling the “Grow and Save”model which may accelerate on embracing of organic products in the urban centres.