Consumer demand and agricultural production : the case of small/medium scale firms' instant cocoa beverege in Nigeria
2006
Sanusi, R.A., Cocoa Research Institute of Nigeria, Idi-Ayunre, P.M.B. 5244, Ibadan (Nigeria), Economics and Statistics Div.
The role of demand in stimulating agriculture production has been an age long hypothesis in economics. However, most economic hypothesis/posyulates and theories were propounded under Ceteris paribus (i.e. all things being equal). The aim of this paper is to provide an insight into the extent consumer demand could impact on agricultural production. 1,413 respondents were randomly interviewed in nine (9) States of Nigeria. Simple statistics and multivariate Tobit regression was used to analyse the data obtained from the respondents. It was found out that small/medium scale firms' cocoa beverage (SCB) characteristics significantly influenced the level of its consumption viz: market characteristics (P less than 0.01), comparative quality rating (P less than 0.05), as well as appearance characteristics (P less than 0.01). Furthermore, improvement in product variable has the potential of increasing cocoa bean requirements (for producing the beverage) by 5.44%. In view of the fact that some socio-economic parameters as well as own price had significant effect on the level of demand for cocoa beverage, product promotional efforts and product development by the (cocoa beverage) producers were recommended.
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