Afework Berhanu, Alemayehu Acha
Abstract: The main objective of this study was estimating the mean willingness to pay of household heads for the certified and labelleled moringa leaf tea product in ArbaMinch, Sawula, Karat and Jinka Town. A contingent valuation method survey was applied to a sample of 397 household heads using the multi bounded discrete choice format which contained a matrix of the five response options with different level of certainty. The survey also included socio-economic, demographic, and environmental characteristics, which are expected to determine the households willingness to pay for the certified and labeled moringa leaf tea product. The survey data was analyzed by using ordered logit model. The result of the study contained descriptive and econometric analysis. The descriptive analysis revealed that household heads are generally willing to have certified and labeled moringa product. The econometric analysis result was shown that household heads WTP is found to be significant determined by education, monthly income; religion and prevalence of diseases in the households etc. Generally, the finding of this study would suggest that the value of certified and labeled moringa leaf tea product could have better welfare effect if it can be supplied by considering the demand side of the product.
Keywords: Labelled and Certified Moringa Leaf Tea, Willingness to Pay, Contingent Valuation Method, Multi Bounded Discrete Choice Format