QUADRATIC ALMOST IDEAL DEMAND SYSTEM ANALYSIS OF DEMAND FOR SELECTED VEGETABLES AND FRUITS IN NIGERIA

Abstract

This study analyzed the demand for selected vegetables and fruits in Nigeria. It determined price effects on demand for fruits and vegetables, examined the demographic variables influencing demand and revealed the expenditure elasticity across income quartiles and sectors. Data from the three waves of Living Standard Measurement Survey-Integrated Survey on Agriculture namely 2010/11, 2012/13 and 2015/16, were employed in the analysis. The demand for bananas, citrus, pineapples, fresh okra, onions pepper and tomatoes was examined using the Quadratic Almost Ideal Demand System. Households in Nigeria consumed more vegetables than fruits. The results revealed that the staple vegetables in Nigerian diets are tomatoes, onions and pepper. It was observed that movement in relative prices elicited high quantity response. All the fruits and vegetables included in the model were normal goods. Vegetables and fruits responded similarly to expenditure increases in urban and rural Nigeria. The own-price elasticities, both uncompensated and compensated agree with the demand theory. More consideration should be given to the intensifying production of fruits and vegetables in technology development and investment to make them available and affordable