Analysis of changes in modern consumption patterns. Development of Nigerian agriculture, increasing farmers' incomes and ensuring food security. Liberalization of trade, regime and diet. Evaluation of presidential initiatives regarding cocoa, cassava.

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University of Ibadan

Analysis of expenditure path beyond staple foods consumption in Nigeria

Adesola Ikudayisi, Aderonke Omotola

Nigeria

Abstract

Purpose. This study investigates the food expenditure path segmented by staples and nonstaples in Nigeria.

Methodology / approach. A multi-stage sampling procedure was used to sample a cross sectional data of 438 urban households from two randomly selected urbanising states in South West, Nigeria. The study used descriptive statistics such as percentages and means to determine households ' food budget shares and their per capita food expenditure

Results. From the expenditure estimates, a differential effect in budget share of food was found with an increase in staples diet of Low Urban Area (LUA) households (33 %). However, consumption of non-staple foods was more pronounced among households residing in high urban areas (HUA) (35 %). Per capita food expenditure was higher for LUA households (N1377.52), while their food shares for processed cereals were equal with those of HUA. Findings suggest a more diverse diets, thus revealing a quality-quantity nexus within urban locations.

Originality / scientific novelty. This is the very study that explains urban differential beyond staple food consumption and nutritional outcome. The household food expenditure pattern brought to fore location-specific variations in urban diet in the study area.

Practical value / implications. The switch away from consumption of staples was beyond income responsiveness, but, towards changes in level of urbanization. The differential path in per capita expenditures on staple and non-staples are shown to have implications on nutrition within urban areas.

Key words: Food expenditure, Urban households, Budget share, Nutrition.

Introduction and review of literature

Globally dietary patterns are changing as a result of socioeconomic, population growth, rapid urbanization, increased disposable incomes of households and improved food distribution (Drewnowski and Poulain, 2018). Aggregate growth in food expenditure as a result of these drivers is expected to influence the food system and welfare outcome (Zhou and Staaz, 2016). Increased rural-urban migration of people into cities for better livelihoods, often with relatively sedentary occupations with trade and investment liberalization influences the food landscape (Godfray et al., 2010). However, the resultant effect of these changes often brings about a gradual shift in food structure, dietary patterns and nutritional status that vary with the socioeconomic strata. Cockx et al., (2017) identifies urbanization as one of the driving forces behind the nutrition transition which often sharpen dietary patterns. In recent times, traditional diets built around staple starchy crops, such as cassava or rice, are gradually being replaced by more varied diets containing more animal products, more vegetables and fruit, and more processed foods (Drewnowski and Poulain, 2018). However, nutritional knowledge on dietary diversification, food safety and quality are transforming the path of food expenditure. Leppman (1999) notes household expenditure as a valid measure of food composition which is a reflection of standard of living. Therefore, change in dietary preferences can be understood through household food expenditure pattern. Due to an increase in income, diets contain more animal source foods and fewer staples, even as the proportion of income used to purchase food declines.

Consequent on expected growth in urban population, demand for food will rise substantially with a subsequent shift in composition of food. Nigeria, faces a high rate of population growth, with total population of about 200 million with its urban population growing at 4.75 % per annum (United Nations, 2019). As the nation is the most populous country in Africa with its rapid urbanization and rising per capita income within urban areas, analysis of food expenditure pattern and its implication on nutrition is essential. Poor information and coordination of food expenditure estimates from disaggregated urban consumption patterns might hinder effective integration of food policies and nutritional status of the population. Over time, poor understanding of the changing consumption patterns has resulted in disjunction between food policies and changes in food preferences. In Nigeria, several government policies for self-sufficiency in production and attaining food security have been implemented.

Some of these agricultural policy instruments included the Presidential Initiatives Campaign on Cocoa, Cassava, and other food crops (1999-- 2007); FADAMA projects (2008) at its various stages and Agricultural Transformation Agenda (ATA) of 2012, designed to improve farmers' income and food security and to transform the export opportunities of local food market (Obayelu and Obayelu, 2014).

Also, the Agricultural Promotion Policy (APP) of 2015, was designed to resolve food shortages and improve output quality of food produce (Federal Ministry of Agriculture and Rural Development, 2016). The low response from such policies by actors along food value chains could be attributed to poor alignment of food expenditure signals with food policies. Coupled with this is the disparities in emergence of dual burden of malnutrition among households in the context of changing global nutrition landscape. In some cases, over-nutrition (obesity) is often prevalent among the high-income, while the low income is vulnerable to undernourishment (World Health Organisation, WHO, 2018; Hansen 2018). Thus, consumption patterns at the disaggregated level would provide better information as aggregation might not explain relative shift in consumption patterns.

Several studies note changing food preferences, away from staples and towards high value commodities (Tripathi and Srivastava, 2011; Haggblade et al. 2017; Ndubueze-Ogaraku, 2016; Cheng and Larochelle, 2016; Hoang, 2018; Chisanga and Zulu-Mbata, 2018). Literature have provided evidence of rural-urban locational differences in food consumption patterns, but rarely discussed the disparities in food expenditure segmented by staples and non-staples within urban areas (Ashagidigbi et al., 2012). At country level, Cheng and Larochelle, (2016) examined demand elasticities for food staples in Niger and Nigeria. Results showed that poor households allocated a larger share of their food budget to staples and become less responsive to income change as economic status improves. Haggblade et al. (2017) assessed food security implication of staple food substitution in Sahelian West Africa. From both rural and urban locations, the poor are more likely than the nonpoor to devote additional income to food (Engel's law). In response to price changes, the poor are also more sensitive than the non-poor. On the other hand, Humphries et al. (2014) estimated differential responsiveness of animal source food consumption to changes in total household expenditures. Households with lower total expenditures spent greater proportion of expenditures on food but with lower percentages on animal source foods.

Analysis of household consumption expenditure on selected staple foods was investigated by Ndubueze-Ogaraku et al. (2016) in Nigeria. The study concluded that the estimated average household expenditure on meat was the highest followed by rice, yam and beans, while expenditure on garri and plantain were low. Jovanovic (2016) analysed the impact of income and its changes on the structure of consumption expenditure by certain groups of products and in different areas in Montenegro.

From the results, the structure of food consumption for the urban residents on the share of meat and fruit decreases, whereas vegetables, milk, cheese and eggs increased. Obayelu et al. (2011) analysed the differential in households' food expenditure between urban and rural households in North-central, Nigeria. Results revealed that households in the rural areas spend over half of their expenditure on food compared to the urban. Also, expenditure on food decreased with household per capita income which was in line with Engel law, while expenditure on staple food items was highest in both rural and urban areas.

This study used a cross-sectional data from 438 households randomly selected through a multi-stage sampling procedure from two randomly selected urbanising states in South West, Nigeria. South west zone is noted for its rapid level of urbanization owing to high concentration of urban activities (Ikwuyatum, 2016). The two states namely Ekiti and Oyo are representative of low urbanised areas (LUA) and high urbanized areas (HUA), respectively. The criteria for grouping was based on their level of urbanisation, population size and density as well as other administrative activities (Ikwuyatum, 2016, National Population Commission, NPC, 2006). These criteria have been identified as a crucial factor sharpening urban food demand (Seto and Ramakkutty, 2016), therefore making the study areas suitable for the research. Information were collected on socioeconomic variables and records of the expenditure of foods purchased by the households on a one-week period.

Changing dietary patterns often associated with the nutrition transition, can be linked to two classic laws of economics (Drewonski and Poulain, 2018). The two laws related to changing food consumer preferences are Bennetts law and Engel's Law. These laws describe the budget shares of food differently. However, Bennett's law, states that the ratio of starchy staple foods consumed decreases when income increases (Bennett, 1941).

It implies that the proportion of calories a household derives from the basic starchy staples (mostly grains and root crops) falls with rising income. Engel's law describes the budget share of (total) food as a declining linear function of the logarithm of total consumption expenditure (Engel, 1895). This means poorer households devote a higher share of income to food than richer households (Holcomb et al., 1995).

Several versions of Engels law have been used in literature as they relate to food, rent, sundries and so on. However, it validates the principles of distribution of expenditures under conditions of increasing or decreasing income. Specifically, the poorer is a family, the greater is the proportion of the total expenditure which must be allocated for food for maintenance of physical sustenance. The proportion of the outgo used for food, other things being equal, measures the standard of living of a population. In other words, Engel, upholds the state of rising income when food expenditures increased at an arithmetical rate. (Zimmerman, 1932).

Following Theil et al. (1987), let Yi be the total consumption expenditure in household i, and W_TFi, the per capita budget share of total food for household i. By Working's (1943) model, it is predicted that W_TFi is a declining linear function of the logarithm of Yi, given as;

WrFi = at + Яilog Yi + Si (1)

where Я is the slope and s_i is a random error term. If total food is subdivided into staple and non-staple, then W_si and W_nsi represent the per capita budget shares of staple and non-staple foods, respectively, for household i. Therefore, the logarithm of the ratio of the expenditures on these foods, is a linear function of log Yi which is expressed as:

Log W_Si /Wnsi= Yi + Silog Yi + ei (2)

Clement and Si, (2018) explain a broader implication of Engel's law based on the food expenditure pattern. As food occupies a larger share of the poor's budget, there is tendency of less diversity relative to more affluent consumers, therefore, they are regarded as food-intensive.

Specifically, within their food budget, cheaper, more- starchy foods (such as rice, potatoes, and bread) are likely to be predominant for the poor, leading to less nutritious, less diversified diets (Li, 2011; Chai and Moneta, 2012; Khoury, et al. 2014; Chai, et al., 2015). Another perspective of this law is its relationship with quality. With luxuries food share taking a greater proportion of the affluence, such that an additional income is spent on these goods suggest they are preferred, or of higher quality. This approach to the measurement of quality has been studied by Theil (1976) and extended by Clements and Gao (2012).

The study used descriptive statistics such as percentages and means to assess food shares. Total food was defined as the summation of staple and non-staple foods.

Weekly food expenditure for staples and non-staples was generated by summing all the respective food items in each food group. Further, weekly budget shares for food were generated by dividing food expenditures (total food, staple, and non-staple) by weekly household head income, which was generated by dividing monthly household income by 4. Per capita expenditure on food was the percentage share of total food, staples and non-staples group relative to the number of household members.

The food items included in the study are rice, wheat, processed cereals, plantain, garri, yam, pulses, milk and milk products, meat, fish, and eggs, vegetables and fresh fruits.

However, grouping of food items by their nutritional contents often provide clear understanding on their caloric shares. Following Tripathi and Srivastava, (2011), food items were classified as staple and non-staple foods based on nutrient capabilities.

The staples foods derived from cereals and root crops included rice, wheat, processed cereals, plantain, garri, yam whereas the non-staples group included all other food items (pulses, milk and milk products, meat, fish, and eggs, vegetables and fresh fruits) which is regarded as high value foods.

Food expenditures were further disaggregated into eight groups: meat (beef, pork, chicken, fish), dairy (cheese, milk), fruits and vegetables (fresh fruits and vegetables), wheat (unprocessed wheat meal), processed cereals (bread, pasta, semovita), pulses (beans, legumes), other cereals (yam, plantain, cassava products) and rice (milled, parboiled). Expenditure share for the disaggregated food items were calculated to know their relative weights in weekly income.

The purpose of the article. Due to diversity in food habits, empirical understanding of urban heterogeneity in food consumption is important considering different social status and location variation within urban locations. The aim of this study is to assess the expenditure pattern of staple and non-staple foods among urban households in Southwest, Nigeria.

Specifically, the study determines the relative food budget shares and the per capita food expenditures of the households on staple and non-staple foods. This study fills the gap by examining expenditure differential beyond staples consumption within two urban locations in Nigeria. Disaggregation of commodity-specific food expenditure by place of residence would likely impact policy changes on agrofood transformation and welfare outcome. Such information is particularly crucial for Nigeria with its drive for improvement in food security and challenges of rising diet-related diseases in urban areas.

Results and discussion

Summary statistics of household heads and the mean values of food expenditure across the two urban areas are presented in Table 1.

Table 1 Summary Statistics of Household Characteristics and Mean Food Expenditure

Conclusions

The growing and changing evidence on food expenditure estimates provides a greater opportunity for understanding disparities in food consumption patterns. Food occupies the major share of household total consumption expenditures, especially in LUA. The switch away from consumption of staples is beyond income responsiveness, but, towards changes in level of urbanization. This was established in differential path of staple and non-staple per capita consumption, which revealed varying food expenditure levels across urban areas. This is indicative of the more varied diets in consumption choice, especially among urban households. These demand patterns also provide information that guides policy-makers in the formulation of food and nutrition policies.

The existing evidence is capable of identifying which food commodities can bring larger nutritional outcome to vulnerable groups. Thus, the study recommends that strategies towards location specific disparities in food consumption could be checked. This could be achieved through strengthening of the agrofood structure through policies on research and development and infrastructural transformation by relevant stakeholders (government, private sector etc.). Therefore, policy interventions in bridging rural-urban food linkages will help in addressing the issue of malnutrition as a result of monotonous diets. This will also improve availability and accessibility of high value foods (mostly perishables) needed for increased micronutrient consumption.

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