Estimating Demand and Financial Feasibility for Introducing a School Milk Program in Laos
Laos faces a critical challenge of childhood malnutrition, with 33% of children under five experiencing stunting and an annual per capita milk consumption of only 7.3 kg. Despite recent increases in school feeding budgets and ongoing dairy sector development, there is no empirical evidence regarding the demand for or financial feasibility of introducing a school milk program in the country. This study surveyed 150 parents and 51 school staff in Vientiane Province, Laos. It applied a conditional logit model and a double-bounded contingent valuation method to assess preferences for product attributes, willingness to pay (WTP), and financial feasibility under three funding scenarios. Results indicate strong demand from both groups: 93.34% of parents and 72.55% of school staff recognize the need for a school milk program, and 90.67% of parents are willing to contribute financially. Both groups significantly preferred fortified and domestically produced milk. The probability of selecting Lao-produced milk was 3.66 times higher among school staff and 1.87 times higher among parents compared to imported alternatives. Average WTP was estimated at 16,441 kip for parents and 6,703 kip for school staff. Financial feasibility analysis showed that combining school budgets with parental cost-sharing could enable once-weekly provision of regular milk in 40–42 schools (95–100%) and fortified milk in 31–42 schools (74–100%). Feasibility further improved with a modest government subsidy of 1,000 kip per serving. These findings establish the first empirical baseline on school milk demand in Laos, demonstrating that a financially sustainable program is viable under a cost-sharing model.