Willingness to pay for contract health care services in dairy animals: a payment card study

Abstract

A study was undertaken in southern peninsular state of India, the Tamil Nadu State, to assess the farmers' “Willingness to pay" (WTP) for receiving annual health care services to their dairy animals. The districts of the state were categorized as “Livestock developed" (LD) and “Livestock under developed" (LUD) based on initial base line developed. Contingent valuation (CV) approach was used to study the farmers' maximum WTP value for two types of health care services: (a) providing health care services at government veterinary centres (in-centre) and (b) extending health care services at farmers' doorsteps (farm gate). A payment card (PC) format was used to assess the farmers' maximum WTP for receiving health care services to cows and buffaloes. The Maximum Likelihood Interval technique was used on interval midpoints. Overall mean WTP value for annual health care services in cows was INR 202.34 for in-centre services, while it was INR 261.66 for home services. Similarly, overall mean WTP value for annual health care services in buffaloes was INR 135.78 for in-centre services and INR 186.20 for farm gate services. The mean stated WTP values for both in-centre and at home services in the LD districts were highest as compared to LUD districts, leaving a scope for increased cost recovery. These WTP estimates exhibited the scope of cost recovery measure that can be implemented in lieu of free services extended currently, besides presenting a clue for designing a “vet-claim" policy in line with “medi-claim" policy for humans.