Abstract:A two-stage Linear Approximate-Almost Ideal Demand Systems model was used to analyze household food demand in semi-urban and rural households in southwest Nigeria based on micro-level data from a multi-stage random sampling survey of one hundred and sixty two households. Aggregate food demand indicates inelastic sensitivity to price changes with the exception of grains. Individual food commodities, in the main, exhibit both price and income elastic behaviour. Expenditure elasticities ranged between o.6670 and … Show more
“…The coefficient of household size had positive relationship with demand for rice implying that as the household size increases the demand for rice increases. This is also in line with theoretical underpinnings as it conforms to Reardon & Escoba, 2001;Omonona et al, 2009;Abdullahi et al, 2011;Musa et al, 2011;Sampson, 2013;Danquah & Egyir, 2014;Danso et al, 2014 but however, contrary to the work of Almas et al (2019) with household size negatively related to demand based on the household consumption expenditure. The R 2 for the exponential form was 0.713 which means that 71.3% of the variation in the demand for rice consumption was explained by the independent variables included in the exponential regression model.…”
Agricultural products including rice, yam and cowpea play significant roles in the food consumption of urban dwellers. However, increase in crop production cost has continued to threaten urban food price in Nigeria. This study analyzed the determinants of demand for food commodities among urban households in Minna metropolis. Data were collected from 110 household heads of urban residences, which were selected through a three-stage random sampling technique. Data collected for the study were analyzed using multiple regression technique. The results showed that rice, yam and cowpea were price in-elastic. The cross-price elasticities for rice, yam and cowpea were -0.132, 0.028 and 0.005 respectively. The computed own price, cross price and income elasticity of demand for rice were –0.308, -0.132 and 0.018 respectively. For yam, the computed values were -1.262, 0.028 and 0.289 respectively. While for cowpea, these values were -0.530, 0.005 and 0.002 respectively. For the income elasticity, rice and cowpea were proven to be normal goods and yam as a luxury good. The social protection strategies in form of food aids policy should be put into action to minimize the inflationary pressure on food items in the urban areas.
“…The coefficient of household size had positive relationship with demand for rice implying that as the household size increases the demand for rice increases. This is also in line with theoretical underpinnings as it conforms to Reardon & Escoba, 2001;Omonona et al, 2009;Abdullahi et al, 2011;Musa et al, 2011;Sampson, 2013;Danquah & Egyir, 2014;Danso et al, 2014 but however, contrary to the work of Almas et al (2019) with household size negatively related to demand based on the household consumption expenditure. The R 2 for the exponential form was 0.713 which means that 71.3% of the variation in the demand for rice consumption was explained by the independent variables included in the exponential regression model.…”
Agricultural products including rice, yam and cowpea play significant roles in the food consumption of urban dwellers. However, increase in crop production cost has continued to threaten urban food price in Nigeria. This study analyzed the determinants of demand for food commodities among urban households in Minna metropolis. Data were collected from 110 household heads of urban residences, which were selected through a three-stage random sampling technique. Data collected for the study were analyzed using multiple regression technique. The results showed that rice, yam and cowpea were price in-elastic. The cross-price elasticities for rice, yam and cowpea were -0.132, 0.028 and 0.005 respectively. The computed own price, cross price and income elasticity of demand for rice were –0.308, -0.132 and 0.018 respectively. For yam, the computed values were -1.262, 0.028 and 0.289 respectively. While for cowpea, these values were -0.530, 0.005 and 0.002 respectively. For the income elasticity, rice and cowpea were proven to be normal goods and yam as a luxury good. The social protection strategies in form of food aids policy should be put into action to minimize the inflationary pressure on food items in the urban areas.
“…This suggests that local rice is not a luxury in the households' food basket but a necessity, and a unit increase in the households' income would be proportionately less than the increasing demand for local rice by a magnitude of 0.02. This finding agrees with Onyeneke et al ( 39 ) and Gyimah-Brempong and Kuku-Shittu ( 40 ) that local rice is a necessity and not luxury food but disagrees with Omonona et al ( 38 ) who posited that rice is an inferior good, as indicated by the negative sign of its expenditure elasticity (−5.2837), and this is an expenditure elastic food item. This could be because what was obtainable in terms of the nation's economy at the time of their research is quite different from the present economic reality.…”
Section: Resultssupporting
confidence: 89%
“…This finding lends credence to the growing trend in households' rice consumption preference over other food items and therefore, the central position of rice in households' food basket. The higher proportion of households' expenditure on rice, both local and foreign varieties, agrees with Omonona et al's study ( 38 ) and Erhabor and Ojogho ( 23 ) also established that rice had the highest proportion of households' monthly food expenditure relative to other food items in their study. The implication is that sudden changes in households' food expenditure would affect the households' rice consumption.…”
Malnutrition and food insecurity remain a significant public health challenge globally, affecting millions of people, particularly in low- and middle-income countries. In Nigeria, the prevalence of malnutrition and food insecurity is high, with a significant burden in the South-West region. Despite several interventions aimed at promoting healthy diets and reducing food insecurity, little is known about the pattern of healthy diets and zero hunger among households, as well as the budget shares on the food items driving these outcomes. Therefore, this study analyzes the pattern of healthy diets and zero hunger among households in South-West Nigeria, using the primary data elicited from 600 rice-consuming households, drawn through a multistage random sampling technique. Descriptive statistics and Linear Approximation to Quadratic Almost Ideal Demand System (LA-QUAIDS) model were used to analyze the dataset. The estimated LA-QUAIDS model was helpful to decipher the relationships that may not be possible to discover using a single-equation model. The finding of this study revealed that rice, especially local (Ofada) rice, is the most consumed food item among the households in the study area with a monthly budget share of 0.195. This is an indication that households spend approximately 19.5% of their monthly food expenditure share on rice consumption. The results also indicated that yam flour (−0.10), cassava-gari (−2.12), and meat (−0.03) are net complements to rice, while the rest of the food items are regarded as net substitutes. The estimated compensated (−1.64) and uncompensated (−1.69) own-price elasticities of local rice, respectively, indicate that local rice variety is price inelastic, and the estimated expenditure elasticity (0.02) suggests that local rice is not a luxury food in the household food basket but a necessity. This study affirms the importance of locally produced foods, especially local rice to the households in the study area. In light of the findings, this study recommends adequate policy aimed at reducing the cost of local food production by boosting domestic production. Apparently, this will technically trigger market price adjustment, as shown in this study, where local rice was estimated to be own-price elastic in nature.
Abstract. Importation of rice in Nigeria discourages local production and hinders the realization of the self-sufficiency goal of the Nigerian Government. With improvement in processing technology and information on its health benefits, consumers of rice are gradually shifting ground for locally produced rice. Hence, this paper explores the priority of local rice in household food expenditure in Kogi State, Nigeria. Simple randomized sampling technique was used to select a sample of 120 respondents. Primary data were sourced from civil servants within the locality. Statistical tools involved descriptive statistics and regression models for the assessment of the households’ attitude, their monthly expenditure, determinants of consumption preference and demand for local rice. The findings revealed that the majority of the households preferred local rice due to the good health benefits and palatability, among others. About 58.3% of the households spent ₦20000 – ₦40000 (1 NGN = 0.0028 USD) on food while 72.2% spent about ₦5000 on local rice monthly. Household income, household size, age, taste, expenditure on food and non-food were the main factors that affected preference for local rice. The study also indicated that local rice in the study area was price elastic and income inelastic. Increased awareness of the nutritional benefits of local rice and its quality improvement has increased the consumers’ preference for local rice in the area.
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