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

Milk is the third largest agri-import in the Philippines. And its demand is projected to increase progressively due to extensive urbanization, rapid growth of human population and income dynamics. Despite the potential expansion of the milk industry in the country, goat's milk remains at subsistence level and its valuation from the potential consumers? point of view, together with the associated price performance, is not well known. Generally, goat?s milk demand in increasing however there is still low preference of goat's milk in relation to cow's milk which can be attributed to its low commercialization. The purpose of the current study was to assess willingness to pay for diary goat?s milk and to analyze the potential consumers? socio-demographic profiles. Stratified random sampling was used to obtain 400 consumers at households. Primary data was collected using a structured interview schedule. Data collected was on household consumer characteristics, responses to different bid levels for goat?s milk and socio-economic factors. The study used single-bounded dichotomous choice CVM to assess consumers? mean WTP for goat?s milk and probit model to determine socio-economic factors influencing consumers? WTP. Results indicated that consumers were willing to pay an average premium of PhP 55.22 above the current prevailing price of goat?s milk. Age, educational attainment, income awareness, and purchase goat's milk had a positive and significant effect on WTP. And number of employed household members, working status, and milk expenditure in a household has negatively influenced WTP. Based from the findings, the study recommends policy intervention aimed at developing the marketability of goat's milk such as enhancing consumer awareness of the important nutritional benefits of goat?s milk, development of goat?s milk dairy processing plant and systems to teach farmer?s about value-adding techniques and to capture existing market opportunities, and development of marketing strategies aimed at the identified potential consumers of goat?s milk in the study.