IDEAS home Printed from https://ideas.repec.org/p/fpr/fcnddp/14.html
   My bibliography  Save this paper

Demand for high-value secondary crops in developing countries: the case of potatoes in Bangladesh and Pakistan

Author

Listed:
  • Bouis, Howarth E.
  • Scott, Gregory J.

Abstract

Secondary crops are of increasing interest to policymakers and planners in developing countries because of a desire to diversify economic activities and because of their proven potential to raise farm incomes and rural employment. To assess this potential, basic information on the demand characteristics for these crops is required. But, given the large number of possible crops to be studied, policy analysts require an estimation procedure that is less data-intensive and time-intensive than standard econometric estimation procedures. In this paper, a relatively new, low-cost procedure, based on demand for food characteristics, is applied, illustrating its usefulness for analysis of demand for potatoes in Bangladesh and Pakistan. In Asia, the potato should not be regarded as a starchy staple whose consumption declines as income increases, but rather as a food with a positive income elasticity. Due to the high calorie cost of potatoes relative to wheat and rice, potatoes are often valued primarily for the variety they contribute to the diet and their taste, rather than for the calories they provide. This means that demand for potatoes should increase with income in the future. However, expansion of demand for potatoes as an alternative food staple is conditional upon the cost per calorie for potatoes approaching that for wheat and rice. Results from Bangladesh for more recent years show that with the rise in potato production, relative prices for potatoes versus wheat fell and per capita consumption of potatoes increased considerably. These findings are consistent with demand parameters generated utilizing the new estimation procedure.

Suggested Citation

  • Bouis, Howarth E. & Scott, Gregory J., 1996. "Demand for high-value secondary crops in developing countries: the case of potatoes in Bangladesh and Pakistan," FCND discussion papers 14, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:14
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/157090
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pitt, Mark M, 1983. "Food Preferences and Nutrition in Rural Bangladesh," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 105-114, February.
    2. Bouis, Howarth E., 1995. "A food demand system based on demand for characteristics: if there is curvature in the Slutsky matrix, what do the curves look like and why?"," FCND discussion papers 7, International Food Policy Research Institute (IFPRI).
    3. Bouis, Howarth E., 1996. "A food demand system based on demand for characteristics: If there is 'curvature' in the Slutsky matrix, what do the curves look like and why?," Journal of Development Economics, Elsevier, vol. 51(2), pages 239-266, December.
    4. Bouis, Howarth E., 1990. "Evaluating demand for calories for urban and rural populations in the Philippines: Implications for nutrition policy under economic recovery," World Development, Elsevier, vol. 18(2), pages 281-299, February.
    5. Jansen, Hans G.P., 1994. "Improving Horticultural Export Performance of Developing Countries in Asia," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(01), pages 1-17, April.
    6. Per Pinstrup-Andersen & Norha Ruiz de Londoño & Edward Hoover, 1976. "The Impact of Increasing Food Supply on Human Nutrition: Implications for Commodity Priorities in Agricultural Research and Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(2), pages 133-142.
    7. W. M. Gorman, 1980. "A Possible Procedure for Analysing Quality Differentials in the Egg Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(5), pages 843-856.
    8. Byerlee, Derek & Sain, Gustavo, 1991. "Relative food prices under structural adjustment: Preliminary findings from Latin America," Food Policy, Elsevier, vol. 16(1), pages 74-84, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).
    2. Pingali, Prabhu, 2007. "Westernization of Asian diets and the transformation of food systems: Implications for research and policy," Food Policy, Elsevier, vol. 32(3), pages 281-298, June.
    3. Olli Salmensuu, 2021. "Potato Importance for Development Focusing on Prices," JRFM, MDPI, vol. 14(3), pages 1-14, March.
    4. Pingali, Prabhu, 2004. "Westernization of Asian diets and the transformation of food systems: Implications for research and policy," ESA Working Papers 23795, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    5. Arifullah, Shahnaz A. & Önal, Hayri & Chishti, Anwar F., 2010. "Effects of technological progress on consumers’ and producers’ welfare: a case study for Pakistan Punjab," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 49(3), pages 1-13.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bouis, Howarth E., 1996. "A food demand system based on demand for characteristics: If there is 'curvature' in the Slutsky matrix, what do the curves look like and why?," Journal of Development Economics, Elsevier, vol. 51(2), pages 239-266, December.
    2. Kumar, Praduman & Kumar, Anjani & Parappurathu, Shinoj & Raju, S.S., 2011. "Estimation of Demand Elasticity for Food Commodities in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(01), June.
    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. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    5. Anríquez, Gustavo & Daidone, Silvio & Mane, Erdgin, 2013. "Rising food prices and undernourishment: A cross-country inquiry," Food Policy, Elsevier, vol. 38(C), pages 190-202.
    6. Barrett, Christopher B., 1999. "The microeconomics of the developmental paradox: on the political economy of food price policy," Agricultural Economics, Blackwell, vol. 20(2), pages 159-172, March.
    7. Picard, Pierre M. & Zeng, Dao-Zhi, 2005. "Agricultural sector and industrial agglomeration," Journal of Development Economics, Elsevier, vol. 77(1), pages 75-106, June.
    8. Ali, Sonia M. & Adams, Richard Jr, 1996. "The Egyptian food subsidy system: Operation and effects on income distribution," World Development, Elsevier, vol. 24(11), pages 1777-1791, November.
    9. Vega, Jose De Jesus Garcia & Gracia, Marcial Canales, 2000. "The Role Of Economic And Demograhpic Variables In Mexican Food Consumption," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(01), pages 1-8, March.
    10. Brown, Mark G., 2006. "Impact of Income on Price and Income Responses in the Differential Demand System," Research papers 36836, Florida Department of Citrus.
    11. repec:fpr:export:1342 is not listed on IDEAS
    12. Huang, Jikun & Bouis, Howarth, 2001. "Structural changes in the demand for food in Asia: empirical evidence from Taiwan," Agricultural Economics, Blackwell, vol. 26(1), pages 57-69, October.
    13. Bouis, Howarth E., 1994. "Agricultural technology and food policy to combat iron deficiency in developing countries," FCND discussion papers 1, International Food Policy Research Institute (IFPRI).
    14. Debbie L Humphries & Jere R Behrman & Benjamin T Crookston & Kirk A Dearden & Whitney Schott & Mary E Penny & on behalf of the Young Lives Determinants and Consequences of Child Growth Project Team, 2014. "Households across All Income Quintiles, Especially the Poorest, Increased Animal Source Food Expenditures Substantially during Recent Peruvian Economic Growth," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-13, November.
    15. Bernell, Stephanie L. & Plantinga, Andrew J. & Wu, JunJie, 2003. "Urban Sprawl And Obesity," 2003 Annual meeting, July 27-30, Montreal, Canada 22004, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Harold Alderman, 1990. "Pobreza y Desnutrición, ¿Cuán Estrecha es la Relación?," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 27(81), pages 151-166.
    17. Fatma El-Hamidi & Ragui Assaad & Ahmed Akhter, 2000. "The Determinants of Employment Status in Egypt," Working Paper 269, Department of Economics, University of Pittsburgh, revised Sep 2006.
    18. Brown, Mark G., 2008. "Impact of Income on Price and Income Responses in the Differential Demand System," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-16, August.
    19. Motkuri, Venkatanarayana, 2020. "Vegetable Consumption in India: Supply Chain and Prices," MPRA Paper 101979, University Library of Munich, Germany.
    20. San Ahmed, Arsalan & Holloway, Garth John, 2017. "Calories, conflict and correlates: Redistributive food security in post-conflict Iraq," Food Policy, Elsevier, vol. 68(C), pages 89-99.
    21. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:fcnddp:14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.