MODELLING THE HOUSEHOLD DEMAND FOR POULTRY PRODUCTS IN OBAFEMI AWOLOWO UNIVERSITY: A LINEAR APPROXIMATE ALMOST IDEAL DEMAND SYSTEM (LA-AIDS) APPROACH

Abstract

The study investigated the demand structure for poultry products in the Obafemi Awolowo University Campus in Nigeria. The study analyzed the budget share allocated to poultry products by households determined the socio- economic characteristics that influenced the size of the budget share, and estimated their income and prices elasticities. Primary data were collected through two-stage sampling procedure. OAU Staff quarters were purposively chosen at the first stage and the second stage involved random selection of staff residing at the quarters.

Descriptive statistics and the Linear Approximate Almost Ideal Demand System (LA-AIDS) were used to analyse the data. The results showed that 53% household's heads are below 50 years of age, 85% of the households had more than 15 years of formal education. 75% are employed in the civil service and 54% of households spend less than 50% of the expenditure on food. The budget share of chicken was significantly and positively affected by prices, those of egg and turkey were significantly affected by their prices and health status of the household within the community. The elasticity estimates revealed that all poultry products were not own-price elastic while income elasticities for all the poultry products were positive and inelastic but for chicken. The cross price elasticities estimates revealed that turkey was a good substitute for chicken and chicken a good compliment for egg.