Heterogeneity in Rural Household Food Demand and Its Determinants in Ondo state, Nigeria: An Application of Quadratic Almost Ideal Demand System (original) (raw)
Related papers
Poverty level in Ondo State is extremely high particularly in rural areas, this is due to low per capita income coupled with various factors and the consumer price index increasing on a daily basis such a way that household income can hardly cope with the trend. Consequently, there are several empirical studies on household expenditure but most of those studies focused on only foodstuffs, however, this study focused on food and non-foodstuffs. This study investigated households' expenditure in rural areas of Ondo State and the specific objectives were: (i) examined the effects of income on household expenditure in rural areas of Ondo State and (ii) identified the determinants of household expenditure in rural areas of Ondo State. Data collected from five hundred and nineteen (519) households' heads selected for the study through multi-stage sampling method were analyzed using the QUAIDS. The study found that all expenditure elasticities were positive, indicating that food and non-food items are normal goods. It was also discovered that Beans (0.22) and Gari (0.82) are necessities with their elasticities less than 1 while others are luxury goods since their elasticities are greater than 1. Own price elasticities were mostly negative as expected in both uncompensated and compensated price elasticity estimates for food items. The Hicksian cross-price elasticities showed that gari and meat were substitutes. The study concluded that income and price influence household purchasing power in rural areas. And thus recommended that economic policies should be geared towards preventing fluctuations majorly in the price of food and non-food items.
Economics of farm households' food demand in Nigeria
Western Balkan Journal of Agricultural Economics and Rural Development
In paper was used the panel data from the Nigeria General Household Survey and commodity prices from alternative sources between 2010-2016 to estimate farm households' food and non-food demand in Nigeria. The commodity bundles of all the food groups were necessities goods, as their budget elasticities were positive and also inelastic. Animal products were a luxury good. There is no strong complementary and substitutive relationship existing between the commodity groups as the cross price elasticities estimated were smaller than the own price elasticities. Households' expenditure on pulses is not affected by changes in their own prices. Policy issue such as stable food prices is important in ensuring that households are assisted in and encourage consuming balance diets.
Determinants of food demand among urban households in Minna Metropolis, Niger State, Nigeria
2021
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 elastic...
Demand for food in Ondo state, Nigeria: Using quadratic almost ideal demand system
There has been great emphasis, on how to reduce the consequences of food insecurity on the people of Ondo State, Nigeria, as a result of which there is a lot of research into demand for food. Estimation of demand for food has ignored required connection between theory and empirical analysis and concentrated on the estimation of single linear demand equation. Even where non linear models such as Almost Ideal Demand System (AIDS) models were used; there was no allowance for a non-monotonic relationship between the marginal budget share and total expenditure. Thus, this study examined demand for food in Ondo State using standard Quadratic Almost Ideal Demand System (QUAIDS) and the specific objectives are: (i) to examine the expenditure pattern, (ii) to determine how household demography affects household expenditure for food, and (iii) to analyse the difference in expenditure purchase among the households in the three senatorial districts of the State. Data collected from 1,200 heads ...
This study examined the determinants of household expenditure on major food items viz: staples, meat and meat related products (fish and eggs), beverages and all food items, analyse the income elasticities of demand for all the food items and investigate the marginal propensity to consume (MPC) on the various food items and make policy recommendations based on the findings of the study. Primary data were collected from 179 households using a set of structured questionnaire. The data were analysed using ordinary least square regression (OLS). Results obtained from the analyses showed that the major determinants of household consumption expenditure on foods were found to be income, household size and educational level of household head. Only meat and meat related products were found to be income elastic (ey = 2.529). Other categorise food classes were income inelastic. The marginal propensity to consume meat and meat related products was highest (0.33) while beverages had the least MPC (0.02). This, therefore, suggest the need to pursue policies that would enhance educational attainment in the study area.
Farm Households' Demand Response to Escalating Food Prices in Nigeria
JOURNAL OF APPLIED ECONOMICS, 2022
This study examined food demand response to rising food prices among farm households in Nigeria using the three waves of the General Household Survey (Panel) conducted between 2010 and 2016. Analysis was within the Quadratic Almost Ideal Demand System framework from which price elasticities and compensated and uncompensated expenditure were computed. The results show that higher prices of almost all of the food categories affected their demand by households. Harvest and location dummies as well as household demographic variables were found to influence household food demand. Poor households consumed less of all the food categories compared to their non-poor counterparts. Escalating prices result in a welfare loss of household expenditure on commodity groups such as rice, wheat, pulses, tuber and other food and non-food items. Overall, 70.1% of the households suffered welfare loss that amounted to an average of 7.52% of the household budget annually.
Determinants of Households' Food Demand in Nigeria
World Rural Observations, 2012
Food crisis in Nigeria has been on the rise with the worsening effect on food security situation in the country. Studies have focused on state sectoral or zonal investigation of households' food demand in Nigeria. However, investigation of households' food demand has received little attention at the National level, necessitating this study. Cross sectional data obtained from the Nigerian Living Standard Survey (NLSS) of 2004 by National Bureau of Statistics was employed. A total of 18,861 households units with relevant variables of interest were used. Prices of different food groups were obtained from Prices of Selected food Items (2004) by NBS. Data used were households' socioeconomic characteristics; prices, quantity purchased and expenditure on different food groups (staple (STP), animal protein (AP), fats and oils (FT), fruits (FR) and vegetables (VG)). Data were analyzed using descriptive statistics and Quadratic Almost Ideal Demand System (QUAIDS) models at p=0.05. The mean age and house size were 47.4±5.35 and 4.85±2.90. Staple was the mostly consumed food group with highest expenditure of N10, 599.6, while fruits is least consumed with lowest expenditure of N374.Older respondents and households with higher income consume less of fats in Nigeria. Expenditure elasticities (Ey) of all the food groups, with the exception of fats and fruits are less than unity. Income smoothening and stability of food prices is an option in ensuring adequate food demand. Problem Statement The global food crisis ("silent Tsunami" or the "perfect storm") affects 2 billion people in the world, of which currently 850 million people face extreme hunger and 25,000 people die each day from starvation. Of the 37 most affected countries, 21 are in Africa. More than 95% of chronically undernourished people live in developing countries (ECOSOC 2008). According to FAO (2008), food consumption in kcal/person/day in Nigeria increased from
This study examined factors influencing food expenditure on rural farming households in Ahiazu-Mbaise Local Government Area of Imo State. The primary data used for this research were obtained through structured questionnaire purposively for six months. Descriptive statistics and ordinary least square regression model were used to analyze the data collected from respondents. About 80% of the farming household spent between N5, 000 and N10, 000 weekly with mean of N9, 300 of the weekly income spent on food weekly. The result of the ordinary least square regression model shows that marital status, household size, years of education, income and other household expenditure were significantly influencing household food expenditure in the study area. The major problems faced by the households were low income from sales, low saving and farm output and inadequate enlightenment. Specifically, the study recommends among other things that government and farmers group should provide agricultural inputs to rural farming household at affordable prices to be able to increase food production Formal enlightenment of the farmers is necessary in order to improve their farming activities, income and standard of living. Keywords: Food, Household, Farmers, Ahiazu-Mbaise, Imo State.
Rural Households Food Expenditure Pattern and Food Security Status in Nigeria
BJSTR, 2022
The study accessed the determinant of food expenditure pattern among rural households in Nigeria during COVID_19 pandemics. The specific objectives are to estimate the amount spent weekly on food and determine the factors affecting amount spent of food in the household. Simple random sampling technique was used to select 480 rural households across three (3) state of southwest geopolitical zones in Nigeria. A well-structured questionnaire was used to collect information on age, marital status, amount spent on foods among the farming households in the study area. Descriptive statistic was used to estimate the mean age of the respondents and estimate the amount spent on food while Ordinary Least Square (OLS) regression was used to determine the factors affecting the amount spent on food in the household of the respondents in the study area. The result of descriptive statistics revealed that 62.0 percent of the respondents are married, 72.0 percent were educated with mean age, household size and monthly income estimated at 47 years, 7 persons and less than 200respectively.Majority(66.67percent)oftherespondentsspentlessthan200 respectively. Majority (66.67 percent) of the respondents spent less than 200respectively.Majority(66.67percent)oftherespondentsspentlessthan100.00 on food with mean amount spent on food at home and away from home estimated at 75.60and75.60 and 75.60and76.55 respectively. OLS regression revealed that household income (p<0.01), age of the household head (p<0.1), household size (p<0.01) and occupation (p<0.05) have positively significantly influence on food expenditure of the households. This research concluded that household income, household size and age of household head had a significant effect on food expenditure. The study recommended that policy attention should be focused on the price control system on food to be more affordable to rural dwellers.