Consumer preferences and willingness to pay for Aflatoxin- Free Milk in Pakistan

Aflatoxins are highly toxic compounds in milk and pose serious risks to human health. Past studies have observed high concentration of aflatoxin in raw milk of Pakistan. Nonetheless, this study contributes by investigating consumers’ demand for aflatoxin-free raw milk. For this purpose, we conducted a discrete choice experiment with a random sample of 360 households drawn from three mega cities of Punjab province. Random parameter logit and latent class models are used to incorporate preference heterogeneity in the stated choice analysis. Empirical findings suggest that consumers want to pay a highest premium for milk having low concentration of aflatoxin. Based on these findings, we suggest that there is considerable scope for the rapid development of aflatoxin-free raw milk, even though it is marketed at prices that are significantly higher than current milk prices.

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Conference Paper/ Presentation
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JEL Codes:
I15; D62

 Record created 2018-08-16, last modified 2020-10-28

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