AN ASSESSMENT OF ECONOMIC AND SOCIO-ECONOMIC FACTORS AFFECTING THE DEMAND FOR GOAT MEAT IN MALAWIPresentation Transcript
AN ASSESSMENT OF ECONOMIC AND SOCIO-ECONOMIC FACTORSAFFECTING THE DEMAND FOR GOAT MEAT IN MALAWI 1 BY JOSHUA MASANGANO (BUNDA COLLEGE)
INTRODUCTION 3Share of livestock production is 8% of total GDP and 25% of agricultural domestic product1.2 million farm families own one or more of various livestock types in Malawi.15% of all the livestock owners are commercial and the rest are subsistence farmers (Dzanja et al, 2006)
INTRODUCTION 4• Goats are mostly kept in central and southern Malawi• Goat production ranks first among ruminants in terms of numbers and their populations are increasing rapidly – Wide adaptation – Capability of being tamed by HHs with low land resources – High liquidity
PROBLEM STATEMENT 5Although the population of goats is rapidly increasing, the per capita consumption of goat meat is very low Low demand Low returns to goat farmers
JUSTIFICATION 6Many studies done on goats only focus on production -little knowledge is available on marketingInformation about the demand for goats would be useful in developing effective production programs that will reduce the imbalance between goat meat production & consumption helping farmers effectively implement market oriented production
OVERALL OBJECTIVE 7overall objective of the study is to analyse the economic & socio-economic factors affecting the demand for goat meat in Malawi.
SPECIFIC OBJECTIVES 8 To determine the levels of demand of goats and goat meat in urban &rural areas of Malawi. To determine the major economic and socio-demographic factors affecting the demand of goat and goat meat in the various regional locations of Malawi. Evaluate consumer’s response with respect to price changes of goats and goat meat relative to beef and potential effect of changing some of the factors affecting the demand
HYPOTHESES 9• There are no differences in levels of demand for goat meat in the urban and rural areas of Malawi.• The demand for goat meat is not affected by the economic and socio-economic factors in the various regional locations of Malawi.• There has been no substitution between goat meat and beef as a result of differential availability and price of both meats.
CONCEPTUAL FRAMEWORK Number of Prices of other Price Buyers goods Determinants of QualityIncome DemandExpectations Socio-economic factorsabout future Tastes
METHODOLOGY 11Data collection tools Secondary data will be collected from National Statistics Office Ministry of Agriculture and Food Security
METHODOLOGY 12An Almost Ideal Demand System will be used to determine demand levels Wi = αi + βilog + ∑ϒ ijlog PjWhere Wi is the budget share for the i-th item and X is the total household expenditure and αi and βi are the parameters.Adding up restrictions: ∑ αi = 1 ∑ϒij = 0 ∑βi = 0Homogeneity: ∑ϒij = 0Symmetry Restrictions: ∑ϒij = ∑ϒji
METHODOLOGY 13Regression analysis will be used in identifying the factors that affect demand Y = β0 + βiXi + έWhere Xi is a vector of various economic and socio- economic factorsXi = (Income, HH size, Age, Education, Region, Employment, Race, Marital Status, Sex, Price of beef, price of pork, price of chicken)
METHODOLOGY 14• An empirical demand model will be constructed with the following fucntional form• Cgmt = f(Pgmt, Pbt, Yt, U)Where• Cgmt -per capita consumption of goat meat in time t• Pgmt -price of goat meat in time t (in Malawi Kwacha)• Yt -income per capita in time t• Pbt -price of beef in time t (in Malawi Kwacha)• Linear, semi-logarithmic & double-logarithmic forms of this model will be tested & the best selected for estimating demand for goat meat in Malawi
EXPECTED RESULTS 15• A demand model which can ably estimate demand for goat meat in Malawi• The levels of demand of goats and goat meat in urban and rural areas of Malawi known and quantified as well as documented.• The major economic and socio-demographic factors affecting the demand of goat and goat meat in the various regional locations of Malawi determined.
THANK YOU 16 THE MARKET, LIKE THE LORD, HELPS THOSE WHO HELP THEMSELVES…BUT UNLIKE THE LORD, IT DOESNOT FORGIVE THOSE WHO KNOW NOT WHAT THEY DO!