Estimating household demand for millet and sorghum in Niger and Nigeria
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Millet and sorghum are two important crops and source of calories for poor households in semiarid West and Central Africa. This research analyzes the response of household demand for millet and sorghum to income and prices in Niger and Nigeria using the latest Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) data by a twostage method. In the first stage, a Working-Leser model is estimated to obtain the elasticity of food expenditure with respect to household total expenditure. In the second stage, a Quadratic Almost Ideal Demand System (QUAIDS) model, incorporating household socio-demographic characteristics and regional dummy variables, is estimated for rural and urban households separately. Unconditional expenditure elasticities, own-price elasticities, and cross-price elasticities are obtained by combining the results of first and second stages. Results reveal that millet and sorghum are necessities for households in Niger and Nigeria. As income grows, household demand for the two crops will increase but at a lower rate than income growth in both countries. Demand for sorghum and millet among rural households is less responsive to income and price changes compared with urban households. Considering high population growth rate and increasing urbanization rate in the two countries, it is expected that total demand for millet and sorghum will continue to increase, but their share in household’s food budget will decline.