This paper analyzed the welfare effects of price changes over categories of farm households in Nigeria taking into consideration the dual role of farm households as both consumer and producer of food between 2010-2016. This study attempts to shed some light on the differences between the direct approach and indirect. Estimated Compensating Variation reveals that 79.0% of farm households were net food buyers and suffered welfare loss (mean = 2.98) with the mean expenditure of N529, 397.5 per annum while 21.0% were net food sellers and enjoyed welfare gain (mean = −1.66) with the mean expenditure of N513, 755.7 per annum. Cereal was identified as food for which the households were most vulnerable to price shocks. When adjustments are allowed, households can adapt their consumption and production patterns resulting in lower deteriorations in welfare with significant differences across quintiles. Therefore, efforts to mitigate extreme price spikes are relevant for improved overall household welfare.
Higher exposure rate to certain chemicals found in processed foods that reduce iodine absorption and a depletion in the amount of iodine found in soil have been reported to be detrimental to health. This study seeks to examine the consumers' acceptability and willingness to pay a price premium for iodine-enriched tomatoes in Abeokuta, southwest, Nigeria. Primary data were used to collect a sample of 300 respondents. The data were analyzed by descriptive statistics and Contingent Valuation Method (CVM) under double bounded dichotomous choice approach. The use of dichotomous choice (DC) method in explaining the willingness to pay (WTP) in contingent valuation studies is a common method in Economics. Research has shown that double-bounded Dichotomous Choice methods provide statistically superior outcomes than single bounded methods, given appropriate sampling design. Results from the socioeconomic characteristics of the respondents revealed a mean age of 42 years and are mainly (83%) in their economic active age (<50 years), 69% male respondents, 63% were married and 53% of the respondents had prior knowledge of iodine-biofortified tomato. It was also revealed that 58% of the respondent are willing to accept and pay a premium for iodine-biofortified tomato. Although, the proportion of the respondents who were willing to pay generally decreases with increases in price. It is concluded that age, level of education, income, prior knowledge and bid price were the significant factors influencing respondents' willingness to pay a price premium for iodine-biofortified tomato in the study area.
This study examined the effects of food price spikes on the quantity and quality of the dietary composition of farm households in Nigeria using the 2010/2011, 2012/2013 and 2015/2016 household survey panel data. The fixed effects models were estimated while controlling for participation in non-farm livelihood activities. Analysis indicated that seasonal comparisons of the average per capita daily calorie intake is lowest in the post-harvest season of 2011 (2511.44 kilocalories), which is higher than the average recommended intake. Results showed that rural households had lower per capita calorie intake and dietary diversity than urban households, which may be an indication of a shift in the calorie inadequacy from urban to rural farm households’ setting in Nigeria. In addition, income and education improvement are crucial for raising food calories and satisfaction of hunger needs among households with total food consumption expenditure of 79.0%. The study recommended that a combination of policy strategies, including income growth, agricultural development and targeted food distribution programs could reduce the problems of inadequate calorie consumption among farm households.
Keywords: Food price increase, household, nutrition, dietary diversity
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