HOUSEHOLDS DEMAND FOR STAPLE CEREAL COMMODITIES AND ANALYSIS OF THE EVOLUTION OF STAPLE CEREALS' PRICES IN BURKINA FASO

Abstract

With a population increasing rapidly and agricultural yields almost stagnant over the years, access to food is a major challenge in Burkina Faso. This study investigates households demand for staple cereal commodities in Burkina Faso, using data from the 2009-2010 Integrated Household Living Condition Survey. A complete almost ideal demand system (AIDS) model is estimated taking into account demographics and zero consumption. Results show that maize, millet and sorghum are necessities while rice is considered a superior cereal commodity. Demand for maize, millet and sorghum are less price elastic than rice and these results are consistent for most households except for wealthy, educated households living in urban areas where rice becomes a necessity. The analysis of the evolution of cereal prices shows an overall increase leaving many people in food insecurity and the country in political instability. Therefore, the country must adopt agricultural reforms to boost production and productivity by exploiting unfarmed land, building more storage facilities, roads and rural infrastructure, using improved seeds and more fertilizer, and installing irrigation systems