Abstract
This study described the food demand of rural households of Nigeria with a view to identifying its determinants and responsiveness to price and household food expenditure.The study made use of 121 rural households in Ondo state using a 3-stage random sampling technique.Demand for food groups in this study was estimated using Quadratic Almost Ideal Demand System (QUAIDS). The Wald test revealed that the QUAIDS model was significantly corrected for endogeneity and that the inclusion of demographics in the model significantly improved estimates. Food group grains and starch basket had the largest share (49%) of household total food expenditure. Grains and starch was expenditure inelastic, animal protein was a luxury, Fruits and Vegetables group was inelastic, while Fats and Oils were elastic. Own price elasticities were all negative as expected in both uncompensated and compensated price elasticity estimates. The Hicksian cross-price elasticities showed that all food groups were net substitutes. Arising from the foregoing, the study concludes that animal protein group and fat and oil group are income responsive while others are inelastic. The study further revealed that all food groups are normal food and price inelastic with the exception of fats and oil (price elastic). Price, household size, total food expenditure, and expenditure on food away-from-home were key determinants of food demand among rural households in Ondo state.Therefore policy directed at increasing both farm income and non-farm income to increase expenditure and promote food security should be given more attention.
Highlights
Agriculture over the years in Nigeria has proved itself a major factor behind the growth of Nigerian economy and more of a pillar of national food security
This study described the food demand of rural households of Nigeria with a view to identifying its determinants and responsiveness to price and household food expenditure.The study made use of 121 rural households in Ondo state using a 3-stage random sampling technique.Demand for food groups in this study was estimated using Quadratic Almost Ideal Demand System (QUAIDS)
Nigeria annual population growth rate is put at 2.83 percent, food production is increasing at 2.5 percent annually and food demand is increasing at 3.5 percent (NBS, 1996)
Summary
Agriculture over the years in Nigeria has proved itself a major factor behind the growth of Nigerian economy and more of a pillar of national food security. Nigeria annual population growth rate is put at 2.83 percent, food production is increasing at 2.5 percent annually and food demand is increasing at 3.5 percent (NBS, 1996). This obvious disparity between food demand and supply coupled with population pressure and resultant food price hike has led to a big gap between food availability and requirement with an enormous challenge on the national food security. The resultant effect of these is the shortages in food production in cocoa producing areas. This is why Hamzat et al (2006)
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