Economics and Marketing
Toktam Mohtashami
Abstract
Given the importance of saffron corms in improving crop yields, it is necessary to supply standard corms that meet the standards required to ensure high yields, especially in the early years of cultivation. Given that currently, there is no official market for this product (standard corm), this study ...
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Given the importance of saffron corms in improving crop yields, it is necessary to supply standard corms that meet the standards required to ensure high yields, especially in the early years of cultivation. Given that currently, there is no official market for this product (standard corm), this study attempted to use the conditional valuation method to measure the maximum willingness to pay of saffron farmers for this non-marketed product, while investigate the factors affecting the selection of this type of corms. The study population consisted of 150 saffron growers in Torbat Heydariyeh and Zaveh area of Razavi Khorasan province. Using Multiple Logit Model to determine factors affecting the selection of one of the certified saffron corms (Type A, corm weighing 5-10 g and up to 60% flowering in the first year, Type B corm weighing 10-15 g and 80% flowering in the first year, Type C corms weighing 15-20 g and up to 90% flowering in the first year, Type D corms weighing more than 20 g and more than 90% flowering in the first year), it was found that increase in education, area, pre-crop treatment and having a lateral occupation significantly increases the probability of selecting corms type A. In contrast, increasing of age and onion weight decreases the likelihood of selection of these corms. Likewise, in selection of B and C corms, education, area of cultivation, lateral occupation, age and pre-cultivation treatment were found to be significant and effective. After estimating the parameters of the Multi Logit model, the expected mean value of willingness to pay (WTP) was set at 82500 Rials, which is higher than the current average price of corms available on the market indicating that saffron growers are willing to pay more for these certified corms.
Economics and Marketing
Alireza Karbasi; mahmoud sabuhi sabuni; bahareh zandi dareh gharibi
Abstract
This study aimed to improve the level of quality classification of saffron and increase farmers' profits by creating a hypothetical market to investigate the factors affecting selection and the willingness of farmers to pay for saffron quality testing using contingent valuation method and open-ended ...
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This study aimed to improve the level of quality classification of saffron and increase farmers' profits by creating a hypothetical market to investigate the factors affecting selection and the willingness of farmers to pay for saffron quality testing using contingent valuation method and open-ended question. data were collected by a questionnaire from a random sample of 170 saffron producers in Khorasan Razavi province. Two-stage Heckman model was used to identify the factors influencing choice and estimation of willingness to pay. data analysis showed that about 48 percent of farmers are willing to pay an additional amount for a quality test, of which 29 percent showed willingness to pay more than 900,000 rials per kilogram of flower. The results of the model's estimation also showed that age, education, land ownership and history of saffron quality testing in the past have a positive and significant effect on the likelihood of choosing and the amount of willingness to pay extra for quality testing. Accordingly, the use of proper and comprehensive training, holding public organizations and promotional activities can play an effective role in encouraging farmers to conduct quality tests.Key words: Saffron, Willingness to pay, Contingent valuation, Two-stage Hackman model.
