Primary trader preferences for participating in high-value markets in Black Pepper- A choice analysis
DOI:
https://doi.org/10.14719/pst.4851Keywords:
black pepper, choice analysis, HVMs, primary traders’ preferences, spiceAbstract
Facilitating the integration of primary traders into modern agricultural value chains, known as high-value markets (HVMs), presents a promising avenue for improving the sustainability of black pepper value chains in Kerala. Due to increased price volatility and risk exposure in trading conditions, primary traders are hesitant to prioritize quality aspects in their procurement decisions. A Best-Worst Scaling (BWS) experiment was employed with traders in the Agro-ecological units (AEUs) 12, 14, 15, 16, 17, 19, 20 and 21 of Kerala to comprehend their preferences regarding quality attributes that could promote sustained participation in HVMs. This study incorporates a unique aspect by examining the consistency of choices between the best and worst options, providing deeper insights into traders' decision-making processes and ensuring an accurate evaluation of preferences by minimizing biases. The choice experiment utilized fractional factorial and balanced incomplete block designs. The results indicate that traders predominantly favour a flexible, incentive-based pricing model and long-term formal relationships with buyers. Conversely, traders consistently rated premium payments and certification as the least favourable market attributes. Preference variations were influenced by traders' experience, income levels and location. The results reveal that primary traders possess the least understanding of factors that may facilitate their entry into HVMs. Our findings underscore the significance of educating traders on crucial market attributes that facilitate their participation in HVMs. Further research on their willingness to adapt to the requirements of HVMs to maximize the benefits to the system.
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