HOUSEHOLD DEMAND STRUCTURE FOR RICE CONSUMPTION IN KADUNA STATE, NIGERIA

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HOUSEHOLD DEMAND STRUCTURE FOR RICE CONSUMPTION IN KADUNA STATE, NIGERIA

Abstract:

This research was undertaken to carry out an analysis of households demand structure for rice consumption in Kaduna state using household consumption data elicited from a sample of 310 households through the instrumentality of a structured questionnaire. The data were analysed using descriptive statistics, Logit regression and LA-AIDS model. The results of the data analysis indicated that the households monthly budget share on rice was 0.14 which indicates that the households spend 14% of their monthly food expenditure on rice consumption. Also, 75% of the sampled households’ preferred imported rice to local rice and the factors that significantly influenced the households’ rice consumption preference were household size (p<0.10), household income (p<0.05), frequency of rice consumption (p<0.10), price of rice (p<0.01), quality of rice (p<0.10) and ease of preparation of rice (p<0.10). The result of the LA-AIDS model showed that the price of rice (p<0.01), beans price (p<0.10), maize price (p<0.01), yam price (p<0.1), food expenditure (p<0.01), age of household head (p<0.05), household income (p<0.05) and number of household income earner (p<0.01) were all significant in influencing the households demand for rice. The estimated compensated (-0.7921) and uncompensated (-0.8887) own price elasticities of rice respectively indicated that rice was price inelastic and the estimated expenditure elasticity (0.69) of rice indicated that rice is not a luxury in the households food basket but a necessity. In the light of the findings of the study, it was recommended that adequate policy aimed at reducing the cost of rice production and increasing supply of local rice should be pursued as this will reduce the prices of local rice and invariably enhance demand for local rice by households as rice was estimated to be own-price inelastic. Also, the rice value chain of Nigeria’s Agricultural Transformation Agenda (ATA) should lay more emphasis on local rice processing so as to ensure that the quality of locally produced rice is improved to make local rice highly competitive with foreign rice and thereby encourage shift in consumer preference from imported rice to locally produced rice.

HOUSEHOLD DEMAND STRUCTURE FOR RICE CONSUMPTION IN KADUNA STATE, NIGERIA

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