URBAN HOUSEHOLD DEMAND FOR MEAT AND MEAT PRODUCTS IN NIGERIA: AN ALMOST IDEAL DEMAND SYSTEM ANALYSIS

This study is based on micro level data on urban household food consumption and expenditure collected between 1999 and 2000 in three Nigerian cities. The LA/AIDS model, which allows the inclusion of demographic variables, was applied to a subset of the data on meat and meat products namely beef, mutton/goat, chicken, fish, eggs, and milk. Results indicate that urban demand for meat products will continue to increase as incomes improve, suggesting potential market opportunities especially for poultry. Intra-household demand patterns clearly indicate the importance of beef for children but contrary to expectations, there is a reduced demand for milk as the number of infants in urban households increase. The observed high income elasticity of demand for poultry products may have a positive impact on the derived demand for maize, a primary product in poultry feed. Encouraging poultry production will help restore the battered agricultural sector of Nigeria, increase farmer income, reduce unemployment, and conserve foreign exchange earnings.Urban households, Meat demand, Demand analysis, Nigeria, Demand and Price Analysis,

Price transmission between supply and demand markets for cassava-based products: A cointegration analysis for gari in Enugu State, Nigeria

The theory of demand and supply implied a positive relationship, or price   information transmission between the supply and demand markets for products.  Using cointegration analysis and weekly data from week 37 in 2004 to week 26 in 2006, a  long-run equilibrium relationship was investigated between the prices for the yellow and white varieties of gari, a granulated dry food product processed from cassava roots, in a typical rural (supply) and urban (demand) markets in Enugu State of south- eastern Nigeria. The Augmented Dickey-Fuller (ADF) test was used to check for stationarity in the pairs of prices while the Engle and Granger two-step procedure was used to test for cointegration of the markets. Results revealed that, although yellow gari sold for relatively higher prices than the white gari in both the rural and urban markets, the market prices were significantly  positively correlated for the two products. The tests for unit roots revealed that the different price series were individually  nonstationarity while the pair of prices for each product was  integrated of order one. The ADF test statistics were calculated as -1.63 and  -1.59  in levels and -9.45 and –8.35 in first differences for yellow gari. The  statistics were also calculated as -1.69 and –1.56 in levels and –10.57 and –9.10 in first  differences for white gari in the studied rural and urban markets. The results revealed further that the rural and urban markets were cointegrated with t-statistics calculated as -4.09 for yellow gari and -4.20 for white gari. Changes in prices in one of the markets reflected similar long-term changes in prices in the other. The error  correction model did not, however, reveal any significant causality link between the peripheral and central markets, suggesting that there were no clear trends in price leadership between the markets. On the whole, the study had established that there could be efficiency in the transmission of price information among the operators of the traditional food markets in Nigeria. The  implication was that the development of the cassava agro-industrial sector might need to generate its own source of raw materials to guarantee food security in Nigeria.Keywords: Co-Integration, Cassava, Gari, Markets, Price

Efficiency and Its Determinants Among Smallholder Farming Units Supplying Cassava to Commercial Starch Processors in Nigeria: Data Envelopment Analysis Approach

Understanding the resource allocation and use efficiency is essential considering the supportive role of agriculture in the advancement of other productive sectors of the economy. Technical efficiency and its determinants were investigated among smallholder cassava-farming and decision-taking units selected from eight states of the southeast and southwest zones of Nigeria. The states’ selection was purposive, being the states in which the IITA-Nestlé cassava starch project was implemented from 2011-2015. However, a multi-stage random sampling technique was used to select a sample of 96 farming units from the clusters established under the project’s out-growers’ scheme. Primary data were collected from the farming units’ heads by administering the pre-tested household survey instrument. Data were analysed using descriptive statistics, inferential statistics, data envelopment analysis, and multivariate ordinary least square regression techniques. The DEA results revealed that majority (73.9%) of the farming units had efficiency scores less than 1 and as such classified as inefficient. Over 30.2% of the cassava farming units had efficient scores greater than 0.8 including 3.1% with scores that ranged from 0.81- 0.99. Farming units with efficiency scores from 0.6-0.8 constituted 17.7% of the sample while those with scores from 0.4-0.6 consist of 33.3%, which also corresponds to the percentage of farming units with efficiencies scores of less than 0.5. Only three variables: cassava farming experience, fertilizer use and quantity of stems used were statistically significant (p<0.05) in explaining cassava farming efficiency. Of these the influence of farming experience was positive while that of fertilizer use and stems were negative. The finding suggests that the elderly and better experienced farmers combined their versatile previous knowledge of farming with willingness to adopt and use improved farming practices to achieve efficiency. Contrary to expectation, fertilizer and stems were associated with less efficiency, a surprising result that could have resulted from misapplication and wastage of the vital resources. The results highlight the need for appropriate training and technical backstopping for the heads of farming units to enhance their knowledge of the good agricultural practices and improve their levels of efficiency. Keywords: DEA; best farming practices; efficiency; processing; cassava value chain; Nigeria

Profitability of Cassava Production: Comparing the Actual and Potential Returns on Investment Among Smallholders in Southern Nigeria

An analysis was conducted of the productivity of smallholder farmers enrolled into an out-growers’ scheme to supply cassava to commercial starch processors under the Nestlé-IITA cassava starch value chain project. Under the project, improved cassava varieties–cloned to be high-yielding, early maturing and disease-resistance–would be supplied to the farmers without charge. Also, to be provided would be training on good agronomic and farm management practices, like land preparation, soil management, stem-cutting habits, treatment of planting materials, fertilizer and herbicides quantity, time and method of application, and number, time and methods of weeding. It was envisaged that combined use of certified planting materials and good practices would substantially lead to increased yield and profitability. The actual performance based on baseline data was compared with the projected profitability under the project. The study was carried out using a sample of ninety-six farmers randomly selected from the eight states that participated in the project. Designed feedback form was used to assemble data on the farmers’ characteristics, previous cassava production state of affairs, including yield, experiences, and constraints to farming and marketing, input acquisition and use, and output flow and prices. Data were analyzed using descriptive statistics, inferential statistics and budgetary techniques. Results revealed N277400 (about US$1,840) as the baseline gross revenue, but this could have risen by over 114$3947), if farmers adopted the package of practices recommended under the project. The gross margin, calculated as N150536 (US$1003.57) could have increased by about 120$2189). Also, the return on variable cost investment calculated as 0.33 under the prevailing farmers’ practice could have risen to as high as 1.25, reflecting a return of N1.25 (rather than N0.33) on every N1 investment in the variable cost. Even though cassava production was a viable farm initiative, the farmers’ adoption and complementary use the recommended package of practices would guarantee higher yield, profitability and return on investment. Keywords: Cassava production, farm management, package of practices, profitability, smallholders, Nigeria

Price Transmission Between Supply And Demand Markets For Cassava-Based Products: A Cointegration Analysis For Gari In Enugu State, Nigeria

The theory of demand and supply implied a positive relationship, or price information transmission between the supply and demand markets for products. Using cointegration analysis and weekly data from week 37 in 2004 to week 26 in 2006, a long-run equilibrium relationship was investigated between the prices for the yellow and white varieties of gari, a granulated dry food product processed from cassava roots, in a typical rural (supply) and urban (demand) markets in Enugu State of south-eastern Nigeria. The Augmented Dickey-Fuller (ADF) test was used to check for stationarity in the pairs of prices while the Engle and Granger two-step procedure was used to test for cointegration of the markets. Results revealed that, although yellow gari sold for relatively higher prices than the white gari in both the rural and urban markets, the market prices were significantly positively correlated for the two products. The tests for unit roots revealed that the different price series were individually nonstationarity while the pair of prices for each product was integrated of order one. The ADF test statistics were calculated as -1.63 and -1.59 in levels and -9.45 and -8.35 in first differences for yellow gari. The statistics were also calculated as -1.69 and -1.56 in levels and -10.57 and -9.10 in first differences for white gari in the studied rural and urban markets. The results revealed further that the rural and urban markets were cointegrated with t-statistics calculated as -4.09 for yellow gari and -4.20 for white gari. Changes in prices in one of the markets reflected similar long-term changes in prices in the other. The error correction model did not, however, reveal any significant causality link between the peripheral and central markets, suggesting that there were no clear trends in price leadership between the markets. On the whole, the study had established that there could be efficiency in the transmission of price information among the operators of the traditional food markets in Nigeria. The implication was that the development of the cassava agro-industrial sector might need to generate its own source of raw materials to guarantee food security in Nigeria

Intensification of Rice Production Systems in Southeastern Nigeria: A Policy Analysis Matrix Approach

The Nigerian rice sector has made remarkable improvement in the last decade as production has increased significantly thereby reducing the gap between domestic supply and demand. In the last three decades, rice imports make up greater proportion of Nigerian imports as rice forms a structural component of the Nigerian diet. Past government inconsistent policies were not successful in securing good market share for domestic rice producers, hence producers suffered great losses. The recent resurgence of interest by the present administration to intensify domestic rice production has yielded positive results. The objective of this study is to analyze and assess the costs and benefits of intensification of rice production systems in southeastern Nigeria using a policy analysis matrix approach. Multi Stage sampling technique was employed in selecting 75 upland and 75 lowland rice farmers who were interviewed with structured and validated questionnaire. Data were analyzed using Policy Analysis Matrix (PAM). The result shows that upland; lowland and double rice cropping systems in southeastern Nigeria are profitable based on the policy analysis matrix (PAM) model, and rice production under various systems and technologies is socially profitable and financially competitive. While there exist comparative advantage in the various production systems, with lowland and double cropping being highest, substantial tax was imposed on rice imports in Nigeria and government investment in intensifying rice production had a positive impact on the output of local rice production. The study concludes with strategies for the development of rice sub sector in Nigeria

URBAN HOUSEHOLD DEMAND FOR MEAT AND MEAT PRODUCTS IN NIGERIA: AN ALMOST IDEAL DEMAND SYSTEM ANALYSIS

This study is based on micro level data on urban household food consumption and expenditure collected between 1999 and 2000 in three Nigerian cities. The LA/AIDS model, which allows the inclusion of demographic variables, was applied to a subset of the data on meat and meat products namely beef, mutton/goat, chicken, fish, eggs, and milk. Results indicate that urban demand for meat products will continue to increase as incomes improve, suggesting potential market opportunities especially for poultry. Intra-household demand patterns clearly indicate the importance of beef for children but contrary to expectations, there is a reduced demand for milk as the number of infants in urban households increase. The observed high income elasticity of demand for poultry products may have a positive impact on the derived demand for maize, a primary product in poultry feed. Encouraging poultry production will help restore the battered agricultural sector of Nigeria, increase farmer income, reduce unemployment, and conserve foreign exchange earnings

Eptd Discussion Paper No. 118

this paper. The preparation of the discussion paper was supported by the IFPRI. The paper was prepared while the author was a Visiting Professor at the African Studies Center at Michigan State University. Dr David Wiley, the Director of the Center and other colleagues in the Center and in the Department of Agricultural Economics offered valuable administrative and technical support and encouragement. Steve Haggblade and Carl K. Eicher provided incisive comments on the various drafts of the paper. ii EXECUTIVE SUMMARY consumed. In the early 1960s, Africa accounted for 42 percent of world cassava production. Thirty years later, in the early 1990s, Africa produced half of world cassava output, primarily because Nigeria and Ghana increased their production four fold. In the process, Nigeria replaced Brazil as the worlds leading cassava producer. The cassava transformation involves a shift from production as a low-yielding, faminereserve crop to a high-yielding cash crop increasingly prepared and consumed as gari, a dry cereal. This discussion paper aims to document the key factors which are driving the cassava transformation in Nigeria and Ghana, two of the three largest cassava producing countries in Africa: Nigeria, the Democratic Republic of Congo, and Ghana. In Nigeria and Ghana, four key factors are driving the cassava transformation. First, the IITAs new high-yielding Tropical Manioc Selection (TMS) varieties boosted cassava yield by 40 percent without fertilizer application. Second, high consumer demand for cassava by rural and urban households fueled the producer incentive to plant more land to cassava. Third, the use of the mechanical grater to prepare gari released labor, especially female labor, from processing for planting more cassa..