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Demand function and elasticities for seed yam in northern Nigeria
Abstract
This study employed the conventional demand function analyses to examine the influence of socio-economic variables on seed yam demand in Northern Nigeria. A multi-stage random sampling technique was used to select 150 seed yam farmers in three major States in 2006. Input-output data and their prices were obtained fromthe farmers. The study revealed that disposable income, labour and fertilizer exert significant influence on seed yam demand in Benue State. In the Federal Capital Territory Abuja, age and education had a direct relationship with seed yam demanded, while farmer experience has a negative effect. In Nasarawa State, education, disposable income and fertilizer had a direct relationship with value of seed yam demanded at 5%; farm size at1.0% while labour had an indirect relationship seed yam demand at 10.0%. The elasticity of demand for seed yams for farm size was elastic for Nasarawa state but inelastic for Abuja. The elasticities with respect to education for the two States were 0.6 and 0.28 respectively. Demand is price inelastic for Abuja and Benue States with respect to their own prices. The cross price elasticities for seed yams to the price of major substitutes were positive but for Nasarawa State. The income elasticities of demand for seed yams were all positive.. There is need therefore for policies aimed at encouraging farmers for increased cultivation of seed yams, improving farmers' access to productive inputs such as fertilizer. Farmers should be educated especially through extension services, trainings and orientation on the benefit of seed yam enterprise for increased commercialisation of the sector.
Keywords: Seed yam, Demand, elasticities
