Factors influencing prices of medicinal plants traded in the Lowveld, South Africa

Abstract

There has been limited research into pricing and consumer behaviour in the informal sector, an understanding of which is critical to effective management of extensively traded wildlife resources. This paper explores factors influencing prices of wild-collected medicinal plants traded in the Lowveld, South Africa. Resource management decisions relating to medicinal plants are often based on the high price/kg values of certain species, and the assumption that there is an inverse relationship between the availability of products and prices. Despite the high-utility value of these plants, subsistence consumers have historically paid low prices for products. In this study, price/kg fluctuated widely, as did market players' perceptions of species availability and consumer demand. Unit prices were low, with a few exceptions. There was no relationship between prices and perceptions of species availability. No relationship was found between prices and consumer demand in one study area, although there was a non-significant relationship in the other. The size of products was the main determinant of price. Consumers were prepared to pay higher prices for certain species, e.g.those used to treat children, those considered highly dangerous (culturally) to collect, or those used for anti-social purposes.