Preferences for high-value agricultural products in developing countries

Abstract

This thesis comprises three papers that aim to analyze demand for livestock products in Vietnam as a case study for preferences for high value agricultural products in developing countries. <br /> Chapter 2 is based on the dataset from Vietnamese Household Living Standard Survey (VHLSS) in 2010 that included 9,399 households. Vietnamese households’ expenditure on milk products for home consumption is analyzed by using different descriptive and econometric analyses. With the help of a double hurdle model, the drivers of expenditure on milk products in both decisions on market participation and amount of expenditure are determined.<br /> Chapter 3 is based on the same dataset used in chapter 2 and uses additional meat consumption data. A maximum likelihood estimation of censored regression models named tobit model is employed and combined with other statistical analyses to analyze the consumption patterns of pork and poultry in Vietnam based on data of the VHLSS 2010 and other resources. <br /> The results of the two articles mentioned in chapter 2 and 3 show significant effects of household characteristics on food consumption in Vietnam. These characteristics include socio-economic and demographic variables of households. The results are used to assess future demand for meat and dairy products in Vietnam as well as other emerging markets with similar situations. Globalization, economic development and urbanization, lead to considerable changes in food consumption patterns in developing countries. These results may help policy makers to implement measures to ensure food security, such as food redistribution between regions and between urban areas, improving infrastructure. Especially the transportation system can support production and exchange between regions in the country. Policy makers should consider policies to improve the nutritional and health status in poor population sectors.<br /> In chapter 4, in order to analyze consumer preferences for indigenous animals in Vietnam as a very specific niche segment of the meat market, a hedonic price analysis at the retail level is conducted. Price information on Ban pork was collected considering several attributes such as time of sale, marketing and quality aspects of Ban pork. In particular, time of sale serves to better understand price variations and seasonal marketing effects of Ban pork. The results of the hedonic price model indicated that the customers are willing to buy at a higher price for Ban pork that has preferable attributes as marketing and quality factors. These marketing and quality factors include type of breed, live weight of animals, fat level of meat, type of meat cut, buying arrangement, type of seller, market location and seasonality. The findings of the price analysis can help producers and traders understanding how to achieve higher prices for Ban pork and how they can produce and sell their products to better meet consumers’ preferences. Moreover, policy makers should consider promoting transactions based on long-term contractual arrangements between producers and restaurant owners and safeguarding appropriate benefits of the rural poor from a systematic and sustainable marketing of quality-controlled pork of regional origin. At the same time, these policies would contribute to safeguarding and promoting the sustainable utilization of valuable local genetic resources.<br /> The results of the three studies may help policy makers to implement policies related to the food sector, nutrition, health and food security in Vietnam, as well as in other developing countries in a similar situation.