As revealed by many recent statistics indigenous chicken population is continuously declining in Sri Lanka, to overcome this problem commercialization is identified as better way to conserve the genetic pool. IC products are available with less or zero value addition in Sri Lankan local, undeveloped market chain. This study investigated consumers’ willingness to pay (WTP) and consumer preference for value added IC meat and egg which would be available in formal market chain. This study had been done South Eastern region of Sri Lanka, randomly selected samples from formal meat shops and super markets were given structured questionnaire, collected data were adopted to Two-step Hacmann selection model to analyse and found that 98% of consumers prefer value added IC meat and 95% prefer value added IC eggs, further 88% and 80% of consumers willing to pay premium price to value added IC meat and egg respectively and estimated consumers willing to pay is Rs. 746.37 per kg of IC meat and Rs. 27.21 per IC egg this is 24.4% and 36.1% more than current price. Since this product is currently not available in Sri Lankan formal market, and highly demanded provide an opportunity for rural IC producers to develop their business by adding new actor into their IC product value chain this phenomena leads to conserve the genetic pool of indigenous chicken in Sri Lanka. This research is limited with IC in backyard poultry production system.

Keywords : Two Step Hackman selection model; Indigenous Chicken (IC); Contingent Valuation; Willingness to Pay