Smallholder keepers’ preference for cattle insurance in Botswana: An application of conjoint analysis

The cattle population in Botswana has deteriorated from 2.8 million to 2.1 million over the years. The deterioration results from various risks including re-occurring drought and high disease prevalence. As a result of these perils, a livestock insurance policy should be developed to compensate farmers for losses incurred. A conjoint analysis method was employed on 182 randomly selected smallholder keepers to characterize their preference for a cattle insurance policy. The results revealed that keepers regarded type of insurance cover and time of compensation as important attributes for an insurance pol icy. The WIBI (type of insurance) was positively significant (p= 0.00), keepers preferred a weather index base insurance policy with a compensation pay out pa id within three months after the loss of a cow. Keepers were not willing to wait for a long duration to be compensated. The willingness to-pay for livestock insurance product was $11.45 per cow per month. Policy implementers should work closely with veterinary officers, conduct awareness workshops and use radios to disseminate information and sensitive farmers about the policy.