Demand Structure and the Consumption of Garri in Owerri North Local Government Area of Imo State, Nigeria.

Abstract

The study analysed empirically the demand structure and the consumption of garri in Owerri North L.G.A. of Imo state, Nigeria and sought to determine the factors that influence the monthly budget share for garri at low, med iu m and high income levels, estimate own price, cross price and income elasticit ies of demand for garri and as well to determine the factors that influence preference for a part icular garri brand. In order to achieve this mandate, Simple random and judgmental samp ling techniques were used to select communit ies, their markets and 80 respondents. A set of pretested and structured questionnaire was used in data collection. Mu ltiple regression model, demand elasticity indicators and logit regression model were the tools of analysis adopted for th is study. The result of the mult iple regression analysis with semi log, as lead equation showed that the critical and significant determinants of monthly budget share for garri among lo w inco me consumers were household size, price of garri and monthly incomes at given levels. The comb ined effect of all the variab les explained 77.8% of the variation in the monthly budget share for garri at 1.0% risk level. The result of the mult iple regression analysis with exponential functional form as the lead equation showed the critical and significant determinants of monthly budget share for garri among the middle income consumers were nu mber of years spent in school, household size and monthly inco mes. All the variables exp lained 81.8% of the variation in the monthly budget share for garri among the middle income consumers. The result also showed that the own price elasticity of demand for garri was 0.03 while cross elasticity of demand fo r garri and fufu, samovita, yam floor and cassava floor were 2.3,1.8, 1.4 and 1.4 respectively. The inco me elasticity of demand for garri was 0.3. The logistic regression estimat ion showed that the determinants for preference of garri include price, colour perception, age and education which were statistically significant at 1.0% risk level. It was reco mmended that there is the need for all consumers in different income strata (low, mediu m and high) to patronize garri of all colours in order to act as impetus to farmers to produce more and increase their inco me.