Perceptions and socio-economic determinants of the willingness to pay for the market information system services: The case of cashew producers in Benin

Abstract

The cashew market is highly variable and prices and trends are changing rapidly, especially at the producer level. However, asymmetries of information prevail in transactions of the products within the sector. The market information system (MIS) is seen as an alternative in the management of information among agricultural stakeholders. The objective of this research is to analyze the perceptions of cashew farmers of the MIS and the socioeconomic determinants of their willingness to pay for the related services. Data were collected using questionnaires from a sample of 344 cashew farmers. Cashew farmers’ perceptions were analyzed using Pearson's Chi-square homogeneity test. A binomial Logit model was used to analyze the socio-economic determinants of farmers’ consent to pay for the MIS. The results showed that more than 50% of cashew farmers consider the different attributes of the market information system as important. The analysis of the socio-economic determinants showed that literacy, knowledge of the market information system, experience in cashew production, access to agricultural credit, access to agricultural inputs, and access to market information influence farmers' willingness to pay for the market system information. The research reveals that effective MIS implementation would improve stakeholders' productivity and income in the cashew sub-sector.