Consumer Preferences on Peanut Aflatoxin Safety in Ghana

Abstract

Food safety attracts growing attention in discussions among scientists, policymakers, and the general public. The introduction and enforcement of appropriate regulatory standards for pervasive food toxins, such as aflatoxins, is a major policy issue. This thesis determines consumer preferences for aflatoxin-free peanut, and how consumer concern for food safety impacts willingness to pay for safer foods. To this end, I analyze a contingent valuation data under a utility maximization framework that incorporates ‘risky’ foods. A cumulative binary logistic regression model is estimated. Results show that consumers in Ghana massively approve of aflatoxin regulation interventions, and are prepared to pay a conservative price premium of 16%. Also, findings show that consumers prioritize food safety above all other factors that influence their market decisions, including prices. Guaranteeing good health is a desirable goal for consumers in Ghana.