2. Modelling household demand for sorghum in the Northwestern Nigeria

Author: Sunday Sambo Mailumo, Felix Awara Eke, Hamid Kunle Kareem, Bethel Fidelis Ewung, Ajayi Godfrey Sunday, Godbless Friday Safugha, Olugbenga Omotayo Alabi

Abstract

This work aimed at modelling households demand for sorghum in the Northwestern Nigeria. A multi-stage sampling design was used to select 200 households consuming sorghum. Primary data of the cross-sectional sources were collected by well-organized questionnaire. The data were analyzed using descriptive statistics and Linearized Almost Ideal Demand System (LA/AIDS) model. The result shows that the average age of the respondents is 45 years. Approximately, 87% of respondents are male and 89% are married. The households have an average monthly income of 66.93 US Dollars. The own-price sorghum elasticity is -0.492. This represents that, for every one-unit increase in sorghum price, there is a resultant decrease in quantity by 0.492. This indicates inelastic sorghum demand. Sorghum is identified as a normal good, exhibiting an income elasticity of 0.898. Findings from the study showed that millet and maize can substitute sorghum, although at varying level. Additionally, socio-economic characteristics such as marital status and, total household expenditure on food, unit price of sorghum, total income of households, total expenditures of maize, sorghum and millet significantly influence the demand of sorghum. Others characteristics such as age, gender, experience and education do not have significant effect on demand. Well-structured policies should be implemented to increase household income levels and encourage sorghum production in Nigeria.

Keywords: demand modelling, LA-AIDS model, sorghum consumption, household demand, consumer behaviour