Farm Households’ Demand Response to Escalating Food Prices in Nigeria

Adeyonu, A. G.; Shittu, Adebayo M.; Kehinde, Mojisola O.; Adekunle, C. P.

doi:10.1080/15140326.2021.1980351

Cited by 6 publications

(3 citation statements)

References 18 publications

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“…Uncompensated and compensated own-price elasticities of demand for 9 (9) out of 13 food items are negative and are statistically significant. The values of compensated and uncompensated own-price elasticities for local rice are −1.64 and −1.69, respectively, which is an indication that the food is price-sensitive ( 41 ). Here, in line with the demand theory, consumers are likely to respond to any changes in the price.…”

Section: Resultsmentioning

confidence: 99%

The pattern of healthy diets and zero hunger among households in South-West Nigeria: application of linear approximation to quadratic almost ideal demand system

Ogunleke

Olawuyi

Ijila

2023

Front. Public Health

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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.

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Section: Resultsmentioning

confidence: 99%

The pattern of healthy diets and zero hunger among households in South-West Nigeria: application of linear approximation to quadratic almost ideal demand system

Ogunleke

Olawuyi

Ijila

2023

Front. Public Health

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“…This model has been used in several studies (such as Hayat et al (2016), Khalil and Yousaf (2012), and Erhabor and Ojogho (2011)) to analyze foods. QUAIDs generalized the AIDS model by incorporating a term that is quadratic in the logarithm of actual expenditure, and this model has been used in several studies such as Adeyonu et al (2021); Obayelu et al (2009); Abdulai and Aubert, (2004); Abdulai (2002) among others. MAIDS is a fractional system that satisfies the conditions for effective global regularity.…”

Section: Empirical Studies On Demand Analysismentioning

confidence: 99%

Households’ Socioeconomic Assessments and Effects on Purchasing Decisions of Rice Types in Oyo State, South-West Nigeria

Obayelu,

Wintola,

Afolayan

et al. 2023

MJAE

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Consumers' purchasing decisions are influenced by their demographic and socioeconomic factors. This study analyzed the effects of socioeconomic characteristics of rice-consuming household heads on purchasing decisions among alternative rice types in Oyo State, Nigeria. A multi-stage sampling procedure was used to select 174 household heads, and data from the sample were collected through a structured questionnaire. Both descriptive statistics and multinomial logit regression were used to analyze the data. Findings show that many rice consumers have formal education, and their preference for various types of rice is highly heterogeneous. Ease of rice preparation is the most important reason for opting for imported rice. The low preference for brown local rice was mainly due to high prices, perceived poor quality, and lack of knowledge about its health benefits. Households’ choice among alternative rice types was significantly determined by marital status, total expenditure, educational status, rice market price, and access to credit. Households’ socioeconomic characteristics strongly influence the types of rice purchased. The differential effects of households’ total expenditure, education, and market prices on the choice of rice types should be taken into account when developing rice interventions aimed at changing dietary habits. In addition, policies and programmes for developing the rice sector and good consumer health should involve reorienting people's values and educating them on the best types of rice. The findings can also be used for proper policy options to address the price of the local nutritious brown rice, expand its production and ensure its full commercialization from possible export.

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“…Rapidly increasing prices cause 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 (Adeyonu et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Dynamics of Food Price Inflation and Its Determinants in Ethiopia: ARDL Approach to Con Integration

2022

JESD

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The inflation picture is more heterogeneous in transition and developing economies. In Ethiopia, the year-onyear food inflation has increased by 42.0 percent in September 2021 as compared to the one observed in September 2020. The main objective of this study is to investigate the dynamics of food price inflation and its determinants in Ethiopia. For data analysis autoregressive distributed lag (ARDL) to con-integration model was used. The results suggested that food price inflation appears to be strongly significant and positive in explaining current food inflationary pressures in the short-run and negative in the long run. In effect, a one percent rise in food prices in the previous year causes the actual food prices to increase in short-run and declines in the long-run. These results emphasized the importance of inflation inertia and persistent price-price spiral movement in Ethiopian food price dynamics. Money supply positively influenced food price inflation growth in the short-run and in long-run. In the same way, the exchange rate influenced food price inflation positively in the short-run and long-run. Food inflation is also negatively influenced by real gross domestic product in US Dollar in both the short-run and long-run. In the same way government budget deficit and general consumer price index affected food price inflation significantly. Therefore, as policy recommendation, policy makers need to take appropriate measure to follow tight monetary policy and find the right balance between money demand and economic growth when needed without over-pumping money into the economy which causes inflation. As it is inferred from the research work the influence of exchange rate on food price is for both the short-run and longrun so that the government needs to focus on the way to control instability in exchange rate by devising a right macroeconomic policy to constrain the upward spiral movement of food price inflation. In regarding budget deficit and general consumer price index, the right decision to stabilize the country's economy by the government is required.

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Farm Households’ Demand Response to Escalating Food Prices in Nigeria

Cited by 6 publications

References 18 publications

The pattern of healthy diets and zero hunger among households in South-West Nigeria: application of linear approximation to quadratic almost ideal demand system

The pattern of healthy diets and zero hunger among households in South-West Nigeria: application of linear approximation to quadratic almost ideal demand system

Households’ Socioeconomic Assessments and Effects on Purchasing Decisions of Rice Types in Oyo State, South-West Nigeria

Dynamics of Food Price Inflation and Its Determinants in Ethiopia: ARDL Approach to Con Integration

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