"The Malian dairy sector has the potential to play an important role in food security and economic development. However, less than 5% of Malian milk is marketed, dairy processing is largely dependent on powdered milk, and imports account for over 70% of household dairy consumption in Mali's capital, Bamako. The objective of this research is to investigate the market failures behind this pattern, in order to identify opportunities for strengthening the competitiveness of the Malian dairy value chain. Three studies focus on key segments of this value chain, with a focus on peri-urban Bamako. The first study uses random parameters logit and latent class analysis of choice experiment data, to examine Malian consumer and retailer preferences for fresh milk as an ingredient in pasteurized milk, as well as for a number of quality-signaling attributes. The second study analyzes nine representative cases of artisanal, semi-industrial, and industrial dairy processors in Bamako, in order to understand the factors that drive a firm's choice to procure and use fresh milk, powdered milk, or some blend of both. The third study applies a double hurdle market participation model to a nationally-representative household dataset, to identify the barriers that constrain Malian milk producers from entering and supplying markets. Among the key results, I find that most Malian consumers have a significant willingness-to-pay for dairy products that are manufactured from fresh milk, as opposed to powdered or blended milk. I also identify quality-signaling mechanisms that can help to address information asymmetry in consumer and retailer markets, and policy measures that could encourage fresh milk supply in markets. Together, these measures should help the Malian dairy value chain to capture a greater share of growing dairy demand."--Pages ii-iii.
Read
