Abstract
Many native chili varieties are becoming extinct due to the lack of economic incentives for farmers to their continued cultivation in Peru. A potential high value pro-poor market for selling native chilies is the international tourism segment. The objectives of this research were to assess the acceptability of the potential introduction of dried native chilies in the international tourism segment by identifying the motivations for buying dried chilies as souvenirs, and then by evaluating the factors influencing the price premiums’ magnitudes related to different label information conditions, such as information about the farmer community, traditional cooking recipes, organic certification, and Fairtrade certification. A face-to-face survey was conducted with 200 international tourists at the airport in Cuzco, Peru. The data were analyzed using a probit and tobit models with sample selection. The results suggest that dried native chilies would have a relatively good acceptance among international tourists. About 62% of the respondents indicated they would buy dried native chilies, and of them, 62%–74% would pay an average price premium ranging from S/1.16–1.58 for different label information conditions. Nevertheless specific marketing campaigns should be designed for different types of international tourists in order to maximize the economic benefits for small-holder farmers.
Highlights
IntroductionNative chili varieties are rich in vitamins, antioxidants, and capsaicin, a component used for medicinal applications [3]
One of the world’s centers of biodiversity for the genus Capsicum is Peru [1,2].Native chili varieties are rich in vitamins, antioxidants, and capsaicin, a component used for medicinal applications [3]
For the continuous variables in the probit model, the marginal effect is the increment in the likelihood to buy dried native chilies as souvenirs associated with a marginal increment in the corresponding explanatory variable
Summary
Native chili varieties are rich in vitamins, antioxidants, and capsaicin, a component used for medicinal applications [3]. Many of those varieties are currently becoming extinct [1]. Supporting the in-situ conservation of native chili varieties can help to address current and future societal needs. The project adapted and provided solar driers to local farmers to help them process and commercialize their native chilies. In this way, it was expected that poverty could be reduced through pro-poor trade. The term “pro-poor” relates to a set of strategic tools designed to reduce poverty as indicated in Ravallion [5]
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