Analysis of demand for vegetable in Malaysia

Abstract

The market information is important in facilitating marketing system from production to the downstream. The purpose of this study is to estimate the Malaysian consumers’ demand for vegetables. By using Household Expenditure Survey 2004/05 data, demands for 6 vegetables are analyzed via a multi-stage budgeting system. The estimated demand elasticities show that the demands for all vegetables are found to increase when per capita income rises. Most of the vegetables are found to respond substantially to changes in their own prices and in the directions as expected with estimated negative own-price elasticities, which is more than unity (except podded vegetable).Vegetable, multi-stage budgeting system, demand elasticities