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Food Demand Patterns in Tanzania: A Censored Regression Analysis of Microdata

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  • Weliwita, Ananda
  • Nyange, David
  • Tsujii, Hiroshi

Abstract

This paper estimates price and food expenditure elasticities of demand for twelve food groups in Tanzania by applying the linearized Almost Ideal Demand system to the latest household survey data. In estimation, particular attention is paid to the presence of zero expenditure and the effects of demographic characteristics on food demand patterns. The results indicate that maize, rice, other cereals, pulses, sugar, edible oils, fish, starch, fruits and vegetables, meat, and other foods are price inelastic while milk and dairy products have unitary elasticity of demand. Most of the food groups are income elastic. The results also reveal that household income and family size have significant effects on food demand patterns. Main policy implications of the results include inter alia (a) income oriented policies will have a greater effect on promoting food consumption than price related policies, (2) a significant price decline associated with increased production of maize and rice will benefit a majority of households since the two commodities have high budget shares and low own-price elasticities of demand, and (3) meat was found to be inelastic with respect to the expenditure on food.

Suggested Citation

  • Weliwita, Ananda & Nyange, David & Tsujii, Hiroshi, 2002. "Food Demand Patterns in Tanzania: A Censored Regression Analysis of Microdata," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 5, pages 1-28.
    • Handle: RePEc:ags:saeasj:205933
    DOI: 10.22004/ag.econ.205933
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    References listed on IDEAS

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    1. Bakhshoodeh, M., 2010. "Impacts of world prices transmission to domestic rice markets in rural Iran," Food Policy, Elsevier, vol. 35(1), pages 12-19, February.
    2. Valdivia, Roberto O. & Antle, John M. & Stoorvogel, Jetse J., 2012. "Coupling the Tradeoff Analysis Model with a market equilibrium model to analyze economic and environmental outcomes of agricultural production systems," Agricultural Systems, Elsevier, vol. 110(C), pages 17-29.
    3. McCullough, Ellen & Zhen, Chen & Shin, Soye & Lu, Meichen & Arsenault, Joanne, 2022. "The role of food preferences in determining diet quality for Tanzanian consumers," Journal of Development Economics, Elsevier, vol. 155(C).
    4. Karugia, Joseph Thuo & Wanjiku, Julliet & Gbegbelegbe, Sika & Nzuma, Jonathan M. & Massawe, Stella & Macharia, Eric & Freeman, H. Ade & Waithaka, Michael M. & Kaitibie, Simeon & Gulan, Ayele, 2009. "The impact of non-tariff barriers on maize and beef trade in East Africa," 2009 Conference, August 16-22, 2009, Beijing, China 51672, International Association of Agricultural Economists.
    5. Jonathan M. Nzuma & Rakhal Sarker, 2010. "An error corrected almost ideal demand system for major cereals in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 43-50, January.
    6. Vincent Leyaro & Oliver Morrissey & Trudy Owens, 2010. "Food Price Changes and Consumer Welfare in Tanzania 1991 – 2007," Discussion Papers 10/01, University of Nottingham, CREDIT.

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