Preference and Willingness of Consumers to Pay for Value-added Poultry Products in Niger Delta Region of Nigeria

Abstract

There has been a steady growth in demand for convenience and ready-cooked food has influenced the interest of poultry processors in developing value-added chicken products that meet consumers' demand/choice. A conjoint analysis was done in this study on the survey of 975 chicken consumers in the Niger Delta Region of Nigeria, between March and September, 2014 to valuate consumers, preferences and willingness to pay (WTP) for various chicken attributed parts, production method, processing method, storage method, the presence of flavor and cooking method. The estimates of consumers, WTP premium prices for various mixtures of value-added characteristics were ascertained. The consumers preferred chicken products refrigerated, from chicken produced under free-range management, chicken breast, chicken product that was addictive and flavor free, which could be oven-heated or pan heated. One half of the entire respondents were willing to pay about 25% more for value-added chicken product over the price for conventional products. On the whole, a premium for value-added chicken products was more likely to be paid for by young consumers, consumers who patronized farmers' markets and preferred free-range or organic chicken products. WTP by consumers was negatively affected by price of products. The poultry industry could utilize combined knowledge of consumers' WTP for value-added chicken product price as a guide of develop innovative value-added chicken products.