Demand Analysis for Cereal Crops in Ethiopia

Cereals are common in Ethiopian diets, but the people’s consumption habits complex, with no single crop dominating. Empirical analysis of cereal household demand is required to quantify responses value changes and individual income changes. A purpose this study assess for major crops Ethiopia using secondary data from Social Economic Survey 2018/19 (ESS) 1700 households cereal-growing consumers. This paper utilises descriptive statistics Almost Ideal Demand System (AIDS) model estimate parameters crops. The empirical results showed that prices themselves, other demographic factors influence share grain expenditure. estimated elasticity all sampled cereals positive, Marshallian (unpaid) price elastic while compensated cross-price was inelastic. Household response decreases as commodity rise. Teff most price-sensitive classified a luxury good because its greater than one. Wheat, maize, sorghum were designated necessities, studied work considered normal goods. According study, magnitude expenditure implies has income. As result, regulation policies would be more effective targeting policies. Furthermore, positive suggests rises, so will Policies aimed at increasing increase cereals.