Farm Households Food Demand and Its Determinants in Nigeria

Abstract

Aims: The study examined the farming households’ food demand in Nigeria by, identifying the socio-economic characteristics of the farming households, assessing the monthly expenditure share of various categories of food in the total households’ food budget, analyzing the expenditure elasticities of the food classes and examining the factors influencing food demand. Methodology: A questionnaire was used as research instrument to elicit primary data from 120 farming households randomly selected through a multi-stage sampling method. The data analyses were done through the use of descriptive statistics and Quadratic Almost Ideal Demand System (QUAIDS) model. Results: The results show that 61.7 percent of the household heads were men while the mean age was 45.7 years. Most (92.5%) of the household heads were educated with mean household size of 7 persons and mean monthly income of N19, 435.20. The analysis of average monthly expenditure share of various food classes demanded for by the households reveals that roots and tubers food class had the largest (48%) share of households’ total food expenditure while flesh foods and dairy products came last with just 2 percent. In addition, expenditure elasticities of the six classes of food considered indicate that  demand for roots and tubers, starchy food, fruits and vegetables and fats and oil food classes were inelastic while that of Flesh foods and dairy products and protein grains were elastic. Also it was revealed that farm households with small household sizes consume more proteinous foods. The determinants that had the expected sign and cut across all food classes were the price of individual food category and household income. Conclusion: The study analysed the farming households’ food demand and its determinants and in order to improve the farm households’ demand for food, it is recommended that policies to prevent upward or downward swings in the prices of foods in the economy should be put in place.