Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2018

The Philippines has been sending billions on milk imports. Main reason is the inadequate local milk supply that only contributes lass than 1% of the country's total milk inventory. Raising cows for milk production is expensive due to its large consumption and large land area required. Considering these factors, there is a need to look for other milk sources such as goat's milk. There are studies about its production in the country, such as its supply chain production that have been conducted but none on the consumption and demand side was initiated. This study aims to determine the willingness to pay (WTP) of milk consumers in General Santos for goat?s milk. Moreover, assessing the factors which affect consumers? in General Santos for goat?s milk, and identifying the socio-demographics of those that are willing to pay are also the study's objectives. Contingent valuation method using the dichotomous choice approach for the elicitation was employed in this study. To determine the mean WTP and to assess the impacts of various socio-demographic variables on consumers? WTP, are achieved through the use of probit regression method. Socio-demographic variables, food purchase patterns, respondents? awareness and bid amount were empirically proven to have a significant effect on consumers? willingness to pay. Results showed that households in General Santos were willing to pay an additional amount of PhP40.00 on top of the existing price of cow's milk in the market. Consumers who are married are less likely to pay more for the nutritional values of goat?s milk. Moreover, respondents who preferred to buy milk in supermarkets, and level of bid amounts of the respondents have negative and significant effects on consumer WTP. Whereas the level of awareness has a positive and significant on its WTP. However, it was determined that most of the respondents are not aware of the existence of goat's milk and that majority have little information regarding its nutritional benefits. Hence, there is a need for the government and other institutions to conduct awareness campaign on the nutritional benefits of goat's milk and promote its acceptance in the market