Demand analysis for tomatoes in Uganda

Abstract

To obtain a healthier diet, Ugandans need to consume not only more vegetables, but also a healthier mix of vegetables with a good proportion of tomatoes in the diet. Tomatoes provide a range of micronutrients to human diets. However, price of tomatoes fluctuates season after season. The effects of price fluctuations on the demand for tomatoes are less known. This research therefore investigates the effect of price variation on the consumption of tomatoes by households in Uganda. I estimate the effects using the UBOS data collected during the Uganda National Household survey year 2019/2020 which is the seventh in the series of household surveys conducted by UBOS comprising the entire population. I analyze the household characteristics which have an effect on the consumption of tomatoes, the effect of prices on tomatoes and the effect of geographical locations on the demand for tomatoes. I analyze the effect of price changes on the demand for tomatoes by using a log linear regression. The findings show that there if no significant difference in the consumption characteristics between the rural and urban households in terms of age of the household heads, adult equivalent scale, household sizes, region, gender, education, marital status and employment status. Furthermore, UBOS data indicates that the demand for tomatoes is elastic, and that onions are substitutes for tomatoes, large. The findings also show that household sizes contribute more to the demand for tomatoes and so does married households, urban areas have a high demand for tomatoes, and the Western region leading in the demand for tomatoes. There is an effect of price, geographical location and household characteristics on the quantity demanded and demand for the tomatoes. These characteristics should be highly considered and understood by the producers in determining best markets for the vegetables. And once the market is clearly spotted, production of the tomatoes will shoot up.