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Agricultural Journal
Year: 2011  |  Volume: 6  |  Issue: 5  |  Page No.: 207 - 212

Effect of Quality on the Demand for Rice in Nigeria

P.O.I. Erhabor and O. Ojogho    

Abstract: The study examined the effect of quality on the demand for in South-Western agro-ecological zone of Nigeria. To achieve this, the study examined the socio-economic characteristics of rice-consuming households, the share of rice expenditure in total household expenditure and quantity and the quality elasticities of rice in the study area. Both primary and secondary data were used to generate information for this study. A multi-stage sampling procedure, involving four stages was used to select 812 households. Data collected were analysed, using both descriptive and inferential statistics. The result of the descriptive statistics showed that rice consumption/demand was more in the urban centres than the rural centres of the study area, mostly among the married and the medium-size male-headed households with tertiary-education. Rice constituted the largest share of the household, total food expenditure which is 24% for the high-income and 28% for the low-income households but 21% among the urban households and 24% among the rural households. The result of the multiple regressions showed that rice was quality elastic. Rice demand in Nigeria is affected by the total expenditure of household and quality. Rural households also value quality and respond more than urban households for every 1% increase in their income. Quality is important in the demand for rice, even in the rural areas. Nigeria must improve on the processing, storage, marketing services and safety attributes of rice particularly, the locally produced with a view to improving the quality of rice consumed and cut-down on importation if it is to attain food security in rice. Government, community based organization and non-governmental organizations can help in this direction.

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