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Demand for selected exotic fruits and vegetables among government workers: a quadratic almost ideal demand system approach

Adenegan, K. O., Adegbite, O. O., Ibe, R. B.
Acta horticulturae 2018 no.1225 pp. 399-406
Almost Ideal Demand System, apples, avocados, carrots, cucumbers, demand elasticities, females, grapes, income, introduced plants, males, nutritional status, pears, prices, sampling, watermelons, Nigeria
In Nigeria exotic fruits and vegetables were hitherto consumed by the elites. However, increased awareness on their nutritional and health benefits has led to increased demand among various income groups. This study analyzed the demand for selected exotic fruits and vegetables (EFV) using the quadratic almost ideal demand system (QUAIDS) approach. A stratified random sampling technique was used to collect data from 200 government workers representing various income groups. Female government workers purchased more of exotic vegetables (p<0.10), while the males purchased more of the exotic fruits (p<0.05). The junior staff in the lower income cadre also purchased more of the cheaper exotic vegetables (p<0.05). Expenditure elasticities for avocado pear, grapes and cucumber (1.4769, 1.2738 and 1.1539, respectively) indicated they were luxury goods while apple, watermelon and carrots (0.8531, 0.9800 and 0.9451, respectively) were normal and necessity goods. Own-price elasticity of demand for most EFV was price inelastic except for grapes (1.2158). Estimates of the cross-price elasticity revealed the possibility of exotic fruits (EV) being substituted with exotic vegetables as price increases. The highest budget share was allocated to watermelon (34%) while the least share was allocated to avocado pear (13%). The study recommends efforts aimed at stabilizing workers’ income and prices of EFV as they affect the demand of EFV for improved nutritional status.