Willingness To Pay For Livestock Services : The Case Of Tamil Nadu

Title : WILLINGNESS TO PAY FOR LIVESTOCK SERVICES: THE CASE OF TAMIL NADU Name of the student : G. KATHIRAVAN Degree for which thesis is submitted : Ph.D. (Animal Husbandry Economics) Name of the chairman : Dr.M. Thirunavukkarasu, Ph.D., Professor and Head, Department of Animal Husbandry Statistics and Computer Applications, Madras Veterinary College, Chennai – 600 007 Year and University : 2006, Tamil Nadu Veterinary and Animal Sciences University, Chennai – 600 051 A study was undertaken in Tamil Nadu to study the cost and uptake of livestock services, analyse the demand and willingness to pay (WTP) values for animal health care and bovine breeding services and to ascertain the constraints faced by farmers in availing services. The districts of the state were categorised as livestock developed (LD) and livestock underdeveloped (LUD). In all, 320 farmers were selected through multistage random sampling technique from four districts selected, two each from LD (Thanjavur and Sivagangai districts) and LUD (Coimbatore and Villupuram districts) categories. The data were collected through personal interview method and payment cards were used for contingent valuation. Of the respondents, 98.99 per cent in LUD districts and 99.49 per cent in LD districts had easy access to public services, while 55.35 per cent and 35.62 per cent, respectively, had access to home services by veterinarians. Home services rendered by veterinarians was rated as the best (0.83), followed by private veterinary clinics (0.75), home services by para-veterinarians (0.74), public veterinary centres (0.64) and co-operative centres (0.48). The public veterinary centres were to be the major animal health care (51.55 per cent) and bovine breeding services (60.77 per cent) providers followed by home services by veterinarians. While all type of cases were being taken to private veterinary centres, private services were preferred primarily for acute and obstetrical cases. Farmers in LUD districts predominantly used privately provided AI than public AI. Although no charges were made for animal health care services rendered at public veterinary centres, the charges in terms of imputed labour cost for bringing the animal to the centre was incurred. Service fee accounted for more than 60 per cent of cost of treatment for home service by a veterinarian or a para-veterinarian. The variations in visit cost of animal health care services were significantly explained by service provider type, place of service, type of diseases, source of drugs, value of animal, follow-up need, household income and district versatility. Similarly, variations in insemination cost was significantly explained by source of semen, place of service, number of straws used, quantity of milk sold and VLUs. Determinants of demand for livestock services were analysed through a two part double hurdle model (probit in the first stage and zero truncated poisson in the second stage). The hurdle model estimates showed that all types of cases, distance to public veterinary centre and value of animal had increased the use of private health care services, while the visit cost decreased the positive probability. Milk price, quantity of milk sold, success rate of insemination, number of crossbred cows, and values of animal inseminated had increased the probability of using private AI, while number of graded buffaloes alone favoured use of public AI. The maximum likelihood interval regression models were used to estimate the value of WTP for annual health care for livestock and bovine breeding services. Overall mean WTP value for annual health care services in cows was Rs. 202.34 for in-centre services, while the same was Rs. 261.66 for home services. Similarly, the mean stated WTP values for in-centre services in buffaloes was Rs.135. 78, Rs.130. 12 in bullocks, Rs.56. 30 in sheep and Rs.61. 60 in goats. However, these values were higher for home services. Importance of quality attributes of public centres’ services were assessed. Contingent valuation was used to elicit the value of quality improvements of public veterinary centres. Tobit regression analysis was used to explore the relationship between each of the partial WTP values and the corresponding quality attribute’s status quo level. Marginal effects of variations in the positive WTP values, and variations in the probability of stating a positive WTP values to respondents who declared that they were unwilling to pay were estimated. There existed absolute concordance between WTP results and the quality attributes’ perceptions in terms of the probability to have a positive WTP value and the WTP themselves. The estimated values of WTP for improving geographical proximity, waiting time, attitude of staffs, drug availability, service provider-farmer relationship, chance of recovery and chance of conception through public veterinary centre services were Rs.7. 72, Rs.7. 72, Rs.5. 20, Rs.6. 58, Rs.3. 91, Rs.5. 84 and Rs.11. 71, respectively. Constraints in availing livestock services by farmers exhibited that long distance to the public veterinary centre and long waiting time before their cases were attended to by the services provider and inadequacy of drugs in the centre were the major limiting factors of public livestock services. High service charges, expensive drug/semen costs and delay in availing appointments of service provider were assessed to be the main problems of private livestock services.