Maize price Shocks, food consumption and the mediating role of access to market in Ghana

Abstract

The existing empirical literature on the impact of food price shocks on food consumption has primarily concentrated on market-purchased foods, offering limited insights into home-produced foods and the quality of food. Addressing this gap, our study employs panel data from Ghana to investigate the relationship between exposure to positive maize price shocks and price variability and household consumption patterns of nutrient-dense and less nutrient-dense diets, considering both market purchases and home production. Our findings indicate that maize price shocks lead to a reduction in households’ consumption of purchased nutrient-dense and less nutrient-dense food groups, while increasing the consumption of home-produced nutrient-dense food groups. The effects of maize price shocks on food consumption vary across household types, primary crop cultivation, and wealth status. Additionally, access to markets emerges as a crucial mechanism through which maize price shocks influence households’ consumption of nutrient-dense and less nutrient-dense diets. The implications of our study underscore the significance of enhanced market access and policy interventions aimed at mitigating food price increases to improve food and nutrition security.