systems research - the IDRC Digital Library - International ...

Price elasticity. The demand for all food items appears to be price inelastic in
all farming groups. The demand for rice is the most important in terms of food
policy in the study area. Among all food items, the demand for rice is relatively
more responsive to price variability in all farming groups (-0.390 in FS I, -0.403 in
FS 11, and -0.306 in FS 111). Furthermore, the demand for fresh fish in FS I is the
most price inelastic among the three farming groups (-0.059 compared with -0.87 for
FS I1 and -0.89 for FS 111). This may be due to the high degree of subsistence on
their own production of fresh fish.
Incot~ze elasticities. The demand for food items among all farming groups is
mostly income elastic (coefficients of elasticities almost 1.0 except for some food
items for which elasticity is oreater than 1.0). For example, the demand for meat in
FS I is income elastic (1.8267. The demand for food commodity bundles (e.g., eggs
and sugar, tea, and coffee in FS 111 and sugar, tea, and coffee in FS 11) are income
elastic. In other words, the demand for those food iterns is likely to be determined
by the farmers' income.
Nonfood sector
There is significant variability in the elasticities among nonfood items.
Price elusticity. Demand in the nonfood sector is mostly price inelastic in all
farming groups for health services. The demand for health services in FS I1 and FS
111 is price elastic (coefficients of -1.324 and -1.025, respectively). The demand for
assets is the most price elastic in all farming groups (coefficients of -1.377 in FS I, -
1.751 in FS 11, and -1.751 in FS 111). This indicates that farmers would lessen their
demand for assets (agricultural assets and savings) if their price increases. These
assets include nonproductive assets such as radios and televisions.
I~zcottze elusticity. The denland for firewood and kerosene, education, social
activities and donations, and assets is income elastic in all farming groups. The
demand for assets is highly income elastic (coefficients of 3.253- in FS 1. 4.533 in FS
11, and 2.533 in FS 111). Social activities and donations showed a similar pattern.
Role of extension, farmer participation, and ~~olicy
Researchers and extension specialists can play a inajor role in improving the
conditions of small-scale farmers and encouraging policy. The technology developed
by these research projects have been transferred through multilocation testing; field
days attended by extension specialists, researchers, pol~cymakers, and farmer
groups; seminars and workshops; publications; and other media (radio and
television).