Consumers’ Willingness to Pay for Safe and Labeled Palm Oil in Ibadan Metropolis

Abstract

In recent decades, the quality attribute of palm oil in food products has raised significant concerns about its effects on human health, society and the environment. Ensuring the safety and quality of palm oil is therefore critical, as it remains a widely used ingredient in many households. This study examined consumers' willingness to pay for packaged palm oil in Ibadan Metropolis. A multi-stage sampling procedure was used to select respondents for the study. Data were obtained with the aid of a structured questionnaire. Data collected were analyzed using descriptive statistics, Contingent Valuation Method (CVM) and logit regression model. Results revealed that 83% of palm oil consumers were aware of packaged and labeled palm oil as a quality attribute. However, only 19.4% were willing to pay for safe packaged and labeled palm oil at ₦2100 per liter. The result also showed that household size, access to credit, packaging and labeling were factors that significantly influenced respondents’ willingness to pay for safe and labeled palm oil among the consumers at 10%, 1% and 1% levels of significance respectively. The study recommended that emphasis should be laid on the benefits of safe and labeled palm oil through educational campaigns by producers, government agencies and relevant NGOs so as to increase the potential of consumers' willingness to pay for safe palm oil products.