Effects of quality signaling on farmers' valuation of legume seeds: Evidence from Myanmar

Abstract

This study investigates how quality signaling, through packaging and lab test labels, affects farmers' willingness to pay (WTP) for certified legume seeds in Myanmar. Using Becker-DeGroot-Marschak experiments with 500 chickpea and green gram farmers, results show that packaging and lab test labeling increase WTP for green gram seeds by 8%–12% but have no significant effect for chickpea. Despite low current usage, 42% of green gram and 23% of chickpea farmers are willing to pay above market prices, indicating strong demand. Farmer seed enterprises, offering the lowest prices, are best positioned to meet this demand with an effective quality signaling strategy.