Economics of Farm Households' Food Demand in Nigeria

In paper was used the panel data from the Nigeria General Household Survey and commodity prices from alternative sources between 2010-2016 to estimate farm households’ food and non-food demand in Nigeria. The commodity bundles of all the food groups were necessities goods, as their budget elasticities were positive and also inelastic. Animal products were a luxury good. There is no strong complementary and substitutive relationship existing between the commodity groups as the cross price elasticities estimated were smaller than the own price elasticities. Households’ expenditure on pulses is not affected by changes in their own prices. Policy issue such as stable food prices is important in ensuring that households are assisted in and encourage consuming balance diets