Willingness to pay for smallquantity LNS in the ilins Project. Kathryn G. Dewey, PhD University of California, Davis

Transcription

1 Willingness to pay for smallquantity LNS in the ilins Project Kathryn G. Dewey, PhD University of California, Davis

2 Development and evaluation of lipid-based nutrient supplements (LNS) for prevention of malnutrition: an innovative, food-based approach The International Lipid-Based Nutrient Supplements (ilins) Project Funded by the Bill & Melinda Gates Foundation

3 Small-quantity LNS developed for the ilins Project [20 g/d; 118 kcal/d] LNS-child: Includes 22 vitamins & minerals ~1 RDA for most micronutrients except Fe (6 mg) & Zn (8 mg) Macrominerals included (Ca, P, K, Mg) Essential fatty acids: 4.5 g linoleic acid; 0.6 g ALA Protein: 2.6 g LNS-P&L: Includes 22 vitamins & minerals; levels based on recent multiple micronutrient trials during pregnancy; Iron content = 20 mg Essential fatty acids: 4.6 g linoleic acid; 0.6 g ALA Protein: 2.6 g Arimond M, Zeilani M, Jungjohann S, Brown KH, Ashorn P, Allen LH, Dewey KG. Considerations in developing lipidbased nutrient supplements for prevention of undernutrition: experience from the International Lipid-Based Nutrient Supplements (ilins) Project. Mat Child Nutr epub May 2013.

4 Assessing Willingness to Pay in the ilins Project Hypothetical WTP (questionnaires) Experimental Auctions (real money) Local Demand Assessments (actual sales)

5 USD/day s supply WTP for LNS P&L and Soybean Flour: DYAD Ghana 1.40 Baseline Per Capita Daily Food Expenditures: $ LNS P&L: $0.61 (N=663) Soybean Flour: $0.46 LNS P&L: $0.52 (N=634) LNS P&L: $0.47 (N=524) Soybean Flour: $0.39 Soybean Flour: $0.37 LNS P&L from Auctions: $0.25 (3.2% zero bid; N=211) Baseline Per Capita Daily Cell Airtime Expenditures: $ % LNS P&L 12.9% Soybean 5.8% LNS P&L 9.6% Soybean % Zero WTP: 6.1% LNS P&L 14.5% Soybean Round: Baseline 35 th Week of Pregnancy 3 Months After Birth Vosti et al., IUCN Mtg., 2013

6 WTP for LNS Child and Herbal Teas: Burkina Faso USD/day s supply Tea: $0.28 (N=367) Tea: $0.25 (N=346) LNS Child: $0.23 LNS Child: $0.21 Baseline Per Capita Daily Food Expenditures: $ LNS Child from Auctions: $0.12 (no zero bids; N=501) Baseline Per Capita Daily Cell Airtime Expenditures: $0.02 % Zero WTP: 1.36% LNS Child 1.91% Tea 1.45% LNS Child 2.31% Tea Round: Baseline (9 months) 15 months Vosti et al., IUCN Mtg., 2013

7 Local Demand Assessments for LNS Child (20g sachets): Burkina Faso ilins Zinc Site Paired Villages Largest 14 villages in the ilins Zinc site Paired villages based on HH demand and market supply characteristics Flipped a coin to determine high and low village level prices (300cfa,150cfa/7 day strip) Recruited/trained 32 vendors with permanent shops Distributed voucher booklets through different pathways Auction participants ilins trial participants Friends of ilins trial participants Provided by vendors Started demand assessment in early July Keeping track of sales Single versus 1 week units One time versus repeat sales Sales by source voucher booklet Vosti et al., IUCN Mtg., 2013

8 Local Demand Assessments for LNS Child Burkina Faso ilins Zinc Site (as of 9/3/13) Over 11,500 sachets sold 150/300 CFA ~.30/.60 US$ per 7-day strip Arc Elasticity of Demand = -2.2 Vosti et al., IUCN Mtg., 2013

9 Conclusions Most consumers are willing to pay (some amount) for smallquantity LNS products WTP varies quite substantially by site and within sites Average hypothetical WTP is greater than estimated production costs but average experimental WTP is closer to estimated production costs Demand will hinge on distribution costs and who pays them Robust demand in the poorest of the ilins sites where vendors are selling small-quantity LNS But at prices below production costs Optimal delivery modality(ies) will depend on target populations and market circumstances Markets may play a role for better-off households with access to developed markets and multiple options for information conveyance For all cost categories, who pays which costs needs to be addressed Effectiveness and cost-effectiveness will vary depending on who pays

10 Slides prepared by Stephen A. Vosti (UC Davis), on behalf of the ilins-ses Team working in Ghana (Univ of Ghana) and Burkina Faso (IRSS) Thank you!